How to Avoid These 10 Common Mistakes When Buying Property in Spain

TL;DR

• Buying in Spain (and Mallorca) is smooth if you handle legal checks, finance, and planning rules early.
• Common pitfalls: skipping due diligence, delaying NIE, no pre-approval, ignoring urban rules, underestimating taxes/fees, skipping inspections, no Spanish will, rushing decisions, and forgetting ongoing costs.
• Vista Collection fixes these with an all-in-one service: vetted lawyers/banks/inspectors, full cost breakdowns, planning reports, and a single point of contact to protect your time, money, and avoid these mistakes when buying property in Spain.

Spain is the perfect escape for US expats, with its rich culture, sprawling beaches, and 300 days of sunshine each year. Buying a property in Spain can give you the opportunity to begin a new life or generate extra income from rentals.

However, rushing into the process and failing to understand how the Spanish property market works can lead to expensive mistakes.

In this guide, we’ll reveal 10 common mistakes to avoid when buying a property in Spain. While we’ll focus on Mallorca, most of these mistakes apply to other locations, too.

So, let’s dive straight in.

Mistake	Quick Overview	Vista Tip
Not Doing Your Research	Buying without full legal checks.	We run due diligence before viewings and share a clear risk report.
Not Obtaining an NIE	No NIE = no purchase progress.	We connect you to trusted lawyers to fast-track your NIE.
Choosing the Wrong Agent	Some agents represent both sides.	We represent you only and tell you the pros and cons of every home.
No Finance Pre-Approval	Sellers prefer ready buyers.	We arrange bank introductions for quick pre-approval.
Ignoring Urban Planning Rules	Not every home can be renovated or rented.	We pull planning reports and confirm what’s allowed before you commit.
Forgetting Extra Costs	Taxes and fees add up fast.	We provide a full cost breakdown with no hidden fees.
Skipping Inspections	Hidden defects can be costly.	We use certified inspectors and leverage reports to negotiate.
No Spanish Will	Succession rules differ from the US.	We introduce specialist notaries to protect your heirs and assets.
Impulsive Decisions	Buying fast, then regretting the area.	We compare Mallorca neighborhoods to match your lifestyle and goals.
Overlooking Ongoing Expenses	Community fees, IBI, and utilities bite.	We calculate monthly/annual costs so the home fits your budget.

1: Not Doing Your Research

When you purchase a property in Mallorca, it must be free from legal disputes, mortgages, and encumbrances. Purchasing a property without understanding its legal status can impact the transaction, and the deal may fall through.

Using a solicitor can help you determine whether the property is a safe prospect, and they’ll also help you obtain a nota simple, which comes from the Land Registry.

These documents contain important information regarding a property’s status and can streamline the transaction.

Vista Collection’s Tip: We never let clients walk into a deal blind. Before arranging a single viewing, our team checks the property’s legal status, ensures it’s free of debt or disputes, and provides a clear report. This way, you only spend time on safe, solid opportunities.

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2: Not Obtaining an NIE Number

If you want to carry out any financial or legal activities in Spain, you’ll need an NIE Number. The Foreigner Identification Number is vital for opening a bank account, finding employment, and renting or buying a property.

You won’t be able to purchase a property without the NIE Number, so it’s one of the first things you should do when moving to Spain or investing in property. Luckily, obtaining the certificate is a simple process.

You can learn more about it in our How to get an NIE Number guide.

How We Help: We connect you with trusted lawyers who fast-track your NIE application. Many of our international buyers secure it within weeks, meaning no unnecessary delays in the buying process.

3: Failing to Choose a Reputable Realtor

There are plenty of reputable real estate agents in Spain, but the process of purchasing a property works differently from the US. For example, the buyer and seller typically have an agent in the USA, but Spanish realtors often represent both parties.

For this reason, it’s essential to research agencies and read reviews before making a decision. A reputable real estate agency will have extensive knowledge of the Spanish market and be able to offer advice.

The Vista Difference: Most agencies in Spain represent both buyer and seller. We don’t. At Vista, we represent you only. We tell you the good and the bad about each property, just as if we were buying it ourselves.

4: Not Securing Finance Before Beginning Your Search

Buying a property can be exciting, as it’s your opportunity to cement your move to Spain or look forward to long-term rental income. However, many people skip one of the most important steps: failing to secure financing.

A mortgage pre-approval doesn’t just give you an idea of what you can afford; it also offers realtors and sellers peace of mind.

Think of it like this: if you don’t have a pre-approved mortgage in place but another prospective buyer does, the seller is more likely to choose the other buyer, as fewer obstacles are in the way.

When you have documents that prove you can afford the property, it can speed up the process and show sellers that you’re a serious buyer.

Our Tip: Through our bank network, we help clients obtain pre-approvals early. This makes you the preferred buyer, since sellers know your financing is solid. One client recently secured their dream villa in Port Andratx ahead of other bidders thanks to this preparation.

5: Not Checking Urban Planning Regulations

Many people purchase a property in Spain and renovate it, which can be beneficial if you want to rent it as a holiday home. However, locations like Mallorca have strict urban planning regulations, and certain properties may have strict rules.

For example, if you buy a property in a Protected Rustic Land area, you may be unable to perform structural renovations, add extensions, or even make cosmetic changes.

Your realtor should let you know if the property has strict regulations, but you can also ask to see the latest urban planning report for peace of mind.

How We Protect Clients:We pull official planning reports before any commitment. For example, a buyer could potentially risk purchasing a rustic finca only to discover renovations are forbidden. With our checks, we help pivot your decisions to help save years of frustration.

6: Failing to Factor in Other Costs

When you buy a home in Mallorca, the costs span far beyond the purchase price. Additional expenses include taxes, legal costs, and registration fees. Understanding them can help you budget for the purchase and ensure you can afford it:

• ITP: Also known as Property Transfer Tax, this fee is applicable when purchasing resale homes. ITP rates typically fall between 6%-10% depending on the property you buy and its location.
• VAT: Value Added Tax only applies to new-build homes, and the set rate is usually 10%.
• Notary Fees: In Spain, notaries handle many procedures associated with buying a property, including drafting a deed of sale document. You’ll need to factor in these fees, which can be between €600 and €1000.
• Land Registry Fees: When you purchase a property, you need to factor in Land Registry Fees. These rates can range from €300 to €1200, depending on the location and value of your home.
• Realtor Fees: Most realtors charge a fee for their services.

Vista Transparency: Hidden costs are where many foreign buyers get stung. We provide a full cost breakdown from the start so you know exactly what to expect before signing. No surprises, no hidden fees.

Try our instant property tax calculator ⇒

7: Ignoring the Importance of Property Inspections

Buying a property is a significant investment, and ensuring that the money you spend is worth it is vital. While some homes might seem structurally safe, it’s common to overlook minor issues that could turn into expensive repairs later.

Arranging a property inspection ensures you pay a fair price for the home and know how much you might spend on upgrades. Plus, many mortgage companies will insist on a professional inspection before accepting your application.

The inspector will assess the property for any structural, plumbing, or electrical issues, giving you complete clarity. If there are problems, but you still want to purchase the home, you should be able to negotiate a lower price.

Our Tip: We only recommend certified inspectors we’d trust for our own homes. In one case, a pre-purchase inspection uncovered €30,000 in hidden repairs. Our client used this report to negotiate the price down and saved significantly.

Step inside this villa in the family-friendly area of Santa Ponsa ⇒

8: Not Creating a Spanish Will

Spain has complex succession laws that differ from those in the US, and not having a Spanish will can simplify the transfer of your estate and avoid expensive fees for your beneficiaries.

Unfortunately, Spain can have complex bureaucratic policies, but when you create a will, it’s easier to safeguard your assets and ensure your last wishes are carried out.

You should also have separate wills for assets in different countries, but once you create the Spanish Will, it will be officially registered. A notary will help you with the paperwork, and your beneficiaries will benefit from reduced inheritance tax.

How We Guide You: We introduce you to vetted notaries and legal experts who specialize in international clients. This ensures your assets are protected under Spanish law, with inheritance taxes minimized for your family.

9: Making Impulsive Decisions

The best thing about purchasing a property in Mallorca is the many options available. Whether you’re looking for a luxury apartment or home in a gated community, you’ll find the perfect location.

However, this also makes it harder to choose the right property, and many buyers make impulsive decisions. Instead of rushing into the process, get to know your chosen area’s neighborhoods and consider which features are most important to you.

For example, if you’re moving to Mallorca, the South West region has plenty of high-end neighborhoods with large homes and beautiful beaches.

Research the area and choose a home that aligns with your needs.

Vista’s Approach: We help you compare Mallorca’s neighborhoods side by side. By aligning lifestyle goals with property options, our clients make confident, long-term decisions instead of rushed ones.

Schedule a private 1:1 consultation ⇒

10: Forgetting Ongoing Expenses

So, once you find the perfect property and purchase it, you can enjoy it – right? Well, mostly… but some people get caught up with ongoing costs.

For example, if you purchase a home or apartment in a gated community, there will be monthly fees for amenities and maintenance.

Spain also has a mandatory Rubbish Collection Tax and IBI tax, with rates depending on your location.

Factoring in these costs can help you budget for them and ensure you choose a property you can afford.

Our Tip: We calculate ongoing costs like community fees, trash collection, IBI tax, etc., before you commit. One client loved a gated community villa until we showed them the €1,000/month maintenance fees. They chose a better-fit property with costs that matched their lifestyle.

Find Your Dream Home Today

Now that you know common mistakes people make when buying a property in Spain, you can take steps to avoid them and enjoy a seamless purchasing process.

Buying property in Spain should be exciting, not stressful. With Vista Collection, every step is handled for you: legal checks, financing, inspections, and even renovations. We protect your investment so you can focus on enjoying Mallorca’s lifestyle.

Book a private 30-minute consultation with a dedicated buyer agent ⇒

• Understand exactly what you’re looking for.
• Show you how we prevent costly mistakes.
• Share exclusive properties you won’t find online.

FAQs

How long does it take for a house purchase to go through in Spain?

A house purchase in Spain can take up to six months to go through, depending on your individual circumstances and whether there are any complications.

You’ll need to apply for a mortgage and complete the necessary paperwork before the property is transferred. Your legal representative will perform due diligence to check that there are no issues with the property.

While the completion process can be longer than in the USA, planning ahead can speed it up.

Can I live in Spain full-time if I buy a property?

It depends on whether you have residency or an applicable visa. Anyone can purchase a home in Spain, but owning a property doesn’t automatically give you the right to live there full-time.

Instead, you’ll need to research available visas and apply for one. You can find more information in our Moving to Spain from the US guide.

Where is the best place to buy property in Spain?

Spain has locations available for all lifestyles, with Madrid and Barcelona being popular options for city lovers. However, many US expats choose Mallorca, as it combines cosmopolitan culture, small towns, and endless beaches.

Mallorca also offers high-end neighborhoods and a large international community, so you’ll have no issues meeting English-speaking locals.

How do I know I’m paying the right price for a property in Mallorca?

We conduct a full market study, highlight defects, and negotiate on your behalf. One client saved over €100,000 because we uncovered structural issues the seller had overlooked.

What ongoing costs should I expect after buying in Mallorca?

Beyond purchase taxes, expect IBI property tax, rubbish collection tax, and possible community fees in gated developments. We calculate these in advance so you choose a property that fits your lifestyle and budget.

How can Vista Collection save me time during the buying process?

Our clients are often busy entrepreneurs or executives. We handle everything—property search, legal checks, finance introductions, and even renovations. You only deal with one point of contact.

Why choose Vista over big-name agencies?

Large agencies often prioritize volume over people. At Vista, we only work with a select group of clients at a time. Our promise is transparency: we show you the pros and cons of each property so you can make informed decisions with confidence.