Costa Blanca North
Common Mistakes When Buying Property in Spain
The most important risks international buyers should understand before purchasing a home on Costa Blanca North.
Many property mistakes happen before the first viewing.
Buying a property in Spain can be a wonderful decision, but the process works differently from the Netherlands, Germany, Belgium, Scandinavia or the United Kingdom.
International buyers often underestimate local regulations, purchase costs, legal documentation, mortgage conditions, community rules and the practical realities of owning a home abroad.
On Costa Blanca North, the most successful buyers are not necessarily the fastest buyers. They are the ones who take time to understand the full picture before making a commitment.
Mistake 01
Relying only on property portals.
Many international buyers begin their search on platforms such as Idealista or Fotocasa. These portals are useful, but they do not always show the full reality of the market.
Some listings may already be sold, reserved, outdated or duplicated across different agencies. In some cases, attractive listings are used mainly to generate new enquiries.
Property portals are a good starting point, but they should never replace local verification, independent advice and careful due diligence.
Mistake 02
Underestimating the real purchase costs.
A common mistake is calculating the budget based only on the purchase price. In Spain, buyers must also consider taxes, legal fees, notary costs, land registry fees, translations, banking costs and sometimes mortgage-related expenses.
For resale properties in the Valencia region, buyers should normally allow a significant additional amount on top of the purchase price. For new-build properties, VAT and stamp duty apply instead of transfer tax.
The exact amount depends on the type of property, purchase price, region and personal circumstances, so figures should always be checked before signing.
Practical Example
What can a €700,000 property really cost?
Property price: €700,000
Transfer tax in the Valencia region: approximately €63,000 – €70,000
Legal fees: approximately €7,000
Notary and land registry fees: approximately €2,500 – €4,000
Administration, translations and other costs: approximately €1,500 – €3,000
Estimated total investment: around €775,000 – €785,000
Mistake 03
Not using an independent lawyer.
An independent lawyer is one of the most important professionals in the Spanish buying process.
The lawyer should check ownership, debts, mortgages, building legality, licences, purchase contracts, payment terms and possible legal risks.
Buyers should avoid relying only on information provided by the seller, agent or developer. Independent legal verification protects the buyer’s interests.
Mistake 04
Skipping proper due diligence.
Before signing or transferring money, buyers should understand exactly what they are buying.
Important checks include the Nota Simple, ownership status, debts, mortgages, occupancy licence, cadastral information, building registration and possible planning restrictions.
Pools, terraces, guest houses, extensions and renovations should be checked carefully. In some cases, older properties may contain unregistered or irregular construction.
- • Is the seller the registered owner?
- • Are there debts or mortgages connected to the property?
- • Are all buildings and extensions legally registered?
- • Is there a valid occupancy licence?
- • Are there urban planning issues or restrictions?
Mistake 05
Underestimating the Homeowners Association.
Many apartments, townhouses, urbanisations and even some villas belong to a community of owners, known in Spain as a Comunidad de Propietarios.
This community can influence daily life, rental possibilities, renovation rules, pet policies, parking, pool use, noise restrictions and future maintenance costs.
Buyers should always request community documents before purchase.
- • Community rules
- • Annual budget
- • Recent meeting minutes
- • Community fees
- • Planned renovations
- • Existing conflicts or unpaid contributions
A property may look perfect during a viewing, while the meeting minutes reveal future expenses, disputes or restrictions that materially affect the purchase.
Mistake 06
Assuming holiday rentals are always allowed.
Many buyers plan to rent out their property when they are not using it. This can be possible, but it should never be assumed.
Tourist rental rules can depend on regional regulations, municipal rules, community restrictions and property type.
Some communities restrict or prohibit short-term rental activity. In other cases, specific licences or registrations may be required.
If rental income is part of the financial plan, this must be checked before purchase.
Mistake 07
Not checking mortgage options early enough.
Mortgage conditions in Spain vary significantly between residents and non-residents.
Many international non-resident buyers may receive lower loan-to-value financing than they expect. Banks often assess income, debt levels, nationality, property type and valuation very carefully.
Younger buyers may hear about Spanish government-backed mortgage guarantee programmes. These can be valuable for eligible first-time buyers, but they usually apply under strict conditions and are often aimed at residents buying a primary home.
Buyers should not assume that 95% or 100% financing will be available to them. A mortgage advisor should check eligibility before any serious offer is made.
Mistake 08
Ignoring Euribor and interest rate risk.
Spanish mortgage rates are influenced by Euribor, inflation, European Central Bank policy and wider economic developments.
Variable-rate mortgages can become more expensive if market rates rise. Fixed-rate mortgages can provide more certainty, but conditions differ per bank and borrower profile.
A property that feels affordable at one interest rate may feel very different if monthly payments increase. Buyers should calculate different scenarios before committing.
Mistake 09
Forgetting annual ownership costs.
The cost of owning a home in Spain does not end at the notary.
Owners should budget for IBI property tax, insurance, utilities, waste collection, maintenance, garden care, pool service, community fees and possible repairs.
Larger villas, older properties or homes with pools and gardens can require thousands of euros per year in ongoing costs.
Example annual costs for a villa
IBI property tax: €800 – €1,500 per year
Insurance: €500 – €1,500 per year
Pool maintenance: €1,000 – €3,000 per year
Garden maintenance: €1,000 – €4,000 per year
General maintenance: €2,000 – €10,000+ per year
Mistake 10
Choosing the wrong location.
Costa Blanca North is not one single lifestyle. Moraira, Jávea, Altea, Denia, Benissa Costa and surrounding villages each offer a very different rhythm, community and property market.
Some areas are better suited to families, others to retirees, golfers, entrepreneurs, remote workers, rental investors or people looking for quiet privacy.
Buyers often focus on the property and underestimate the importance of daily life around it: schools, healthcare, restaurants, social life, accessibility, year-round activity and local services.
Mistake 11
Not thinking about resale value.
Even buyers who plan to keep a home for many years should consider future resale value.
Important factors include location, access, views, legal status, energy efficiency, maintenance condition, rental potential, parking and demand from future international buyers.
A beautiful property can still be difficult to resell if it has legal complications, poor access, high community fees or location disadvantages.
Mistake 12
Thinking Spain works the same as home.
Spain has its own pace, culture, bureaucracy and way of doing business.
Documents may take longer. Appointments may require patience. Local professionals, town halls, banks and registries may follow different procedures than buyers are used to.
This does not mean the process cannot be smooth. It means buyers need realistic expectations, trusted local contacts and clear guidance.
Buying with clarity
Planning to buy property on Costa Blanca North?
Nordic Move Spain helps international buyers understand the region, avoid common mistakes and make more confident property decisions in Spain.
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