Risks and pitfalls of buying property in Spain as a UK foreigner

Buying property in Spain is a dream for many UK citizens, especially if you’re aiming for a beachside retreat. However, there are always risks to consider when you’re making an investment abroad, and Spain is no exception.

In this guide, we’ll look at some of the common pitfalls of buying property in Spain. We’ll help you prepare for potential risks and show you how to avoid them.

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Pitfalls of buying property in Spain

Even if you’re confident about navigating the property market, mistakes can still happen, especially since you’re dealing with real estate abroad. To help you stay on the safe side, here are some pitfalls of buying property in Spain to look out for.

Fake agent scams

Foreign buyers are sometimes targeted by scams where people pretend to be real estate agents. These scammers might try to trick you into paying deposits or handing over personal information, only to disappear afterwards. They often pressure you to make a quick decision or pay reservation fees.

This is why it’s essential to use trusted platforms and work with reputable agencies, as well as hire a property lawyer. When dealing with any property experts, always check if they’re members of a recognised professional body. Above all, don’t rush into such a significant purchase, as pressure tactics are often used to make you act impulsively.

Issues with Coastal Law (Ley de Costas)

The Spanish Coastal Law, known as Ley de Costas, protects the coastline and regulates construction in these sensitive areas. The land closest to the beach and shore is classified as public domain, which means nobody’s allowed to own property or build a house there.¹

Before you buy property close to the beach, you should check whether you’ll have permission to build or carry out any modifications. Buying a house that has been constructed illegally within these protected zones carries the risk of demolition. This is why it’s important to hire a lawyer specialising in coastal law.

Lack of Licence of First Occupation (Licencia de Primera Ocupación)

The Licencia de Primera Ocupación (LPO) is a document that confirms a property is safe to live in and has been built in accordance with building regulations and planning laws. It’s issued by a local Spanish town hall and allows the property to be connected to essential utilities.²

If the property you’re considering doesn’t have a LPO, you won’t be able to live there legally or obtain a rental licence. You’ll also have difficulty getting a mortgage or any type of financing in Spain.²

Before making a purchase, carefully check the legal status of the property.

Unexpected renovation costs

One of the most common pitfalls of buying property in Spain is underestimating how much money you’ll need for renovations. A house may look perfectly fine from the outside, but it’s essential to consider what lies beneath the surface.

Make sure you pay close attention to issues like mould and humidity damage, especially in properties located near the coast. Pest infestation, such as termites, can lead to costly structural repairs, while older homes will likely need updates to the plumbing system.

Investing in a professional property inspection is an extra cost well worth making, since it might also give you an advantage when negotiating the price of the property.

Language barrier

If your Spanish language skills are limited, it can be difficult to ask all the necessary questions, negotiate effectively and fully understand the contract when buying property. These communication issues can lead to misunderstandings or unfavourable agreements.

Even if you do speak Spanish or know the seller personally, a local real estate lawyer can save you from potential problems. It’s also wise to hire a translator if needed, since these costs are likely to be much less than the expense of buying the wrong property.

Not reading the Horizontal Property Law (Ley de Propiedad Horizontal)

If you’re buying property in Spain with the intention of renting it out, the Horizontal Property Law might affect your plans. Recent changes to this law now require you to obtain approval from the Owners' Association of your building, or Comunidad de Propietarios, for short-term rentals.³

Under the law, at least 60 percent of your neighbours must agree before you can use your property for this type of rentals.³ Since the changes to this law are quite recent, many people are unaware that obtaining all the necessary legal licences isn’t enough. You’ll also need your neighbour’s approval, which may not always be granted.

Since these regulations can change frequently, be sure to research the current laws thoroughly before making a big purchase.

Issues with Nota Simple

The Nota Simple is one of the most important documents when purchasing and owning property in Spain. It provides information about the owner, the size of the property and its boundaries, as well as any debts linked to it. If the seller doesn’t provide a recent Nota Simple, this could be sign of a scam.⁴

When you receive an up-to-date Nota Simple, it’s essential to compare it carefully to the property listing and the actual condition of the property. This includes checking property boundaries, usage classification and any differences between the property and its description. You may discover that some structures or even entire buildings have been built illegally, which can later be difficult or even impossible to register.⁴

Make sure that you and your lawyer review this document thoroughly and ask the seller any questions needed to clarify these points before making the purchase.

Not hiring an independent lawyer

It might seem easier to use the same lawyer as the seller, as this can save time for both parties. However, one of the pitfalls of this approach is that the lawyer may prioritise closing the deal to make a profit, which could result in you ending up with a less favourable agreement.

Hidden debts

If a property has unpaid municipal and community fees or any other bills, these will most likely be transferred to you as the new owner. However, in addition to checking the Nota Simple for any debts, you have the right to request a certificate of no debt from both the homeowners' association and the utility companies.⁵

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Sources used:

Sources last checked on date: 16-Sep-2025