Pitfalls of buying property in Spain: 12 problems and how to check them

Why the risks of buying property in Spain are different

In the UK or Ireland, a conveyancer runs local searches as a matter of routine. In Spain, the notary checks identities and the deed, but nobody is obliged to check planning, debts or occupancy for you. The system relies on the buyer doing due diligence, usually through their own lawyer. That's where most problems buying property in Spain come from: things nobody looked at before the deposit was paid.

Below are twelve concrete pitfalls, each with the document or office that reveals it.

The 12 pitfalls and how to check each one

1. Illegal builds and AFO status

Extensions, pools, enclosed terraces and even whole houses built without a licence are common, especially inland. Once the deadline for the town hall to act has passed, many regions let the owner apply for a declaration that the building is asimilado a fuera de ordenación (AFO). AFO means the council can no longer demolish it, but it is not the same as legal: extensions are usually banned, and some banks won't lend on it. The deadlines and procedure are set by each region.

How to check: compare the built area on the nota simple, the catastro and what you see on the ground. Ask the town hall for the licence (licencia de obra and licencia de primera ocupación or equivalent) and whether any disciplinary file is open.

2. Rustic land

A house on suelo rústico (non-developable land) may have been built legally decades ago or not at all. New building on rustic land is heavily restricted, and minimum plot sizes vary by region and municipality. See our guide to buying land in Spain.

How to check: the catastro record shows whether the parcel is urbano or rústico. The town hall's planning map (PGOU) and a certificado urbanístico confirm the classification and what can be built.

3. Community debts

Under the Ley de Propiedad Horizontal, a flat or townhouse answers for unpaid community fees for the part of the current year already due and the three previous calendar years. If the seller hasn't paid, the community can come after you.

How to check: the seller must provide a certificate of debts from the community secretary, who has seven days to issue it. The notary can only waive it if you expressly agree, so don't.

4. IBI arrears

The annual property tax is secured on the property itself. Arrears can be claimed from the new owner.

How to check: ask for the last IBI receipts, or a certificate from the local tax office showing nothing is outstanding. Most notaries also check this at completion.

5. Charges on the nota simple

Mortgages are normal and get paid off at the notary. Embargos (seizures), bans on selling, pending lawsuits, usufructs and rights of way are not.

How to check: order a nota simple before arras and again just before completion. Every charge should be cancelled or explained in writing.

6. Mismatched catastro and registry areas

The land registry and the catastro are separate systems and often disagree on surface area and boundaries. A 200 m² house on the catastro and 120 m² on the registry usually means undeclared building work.

How to check: look up the referencia catastral and compare it line by line with the nota simple and the listing.

7. The coastal law

The Ley de Costas sets a protection easement of 100 metres inland from the public shoreline, reduced to 20 metres in many areas that were already urban when the law came in. Inside it, new building and extensions are restricted. Some older properties sit partly on public land and hold only a concession, not full ownership.

How to check: ask whether the property is affected by the deslinde (the official shoreline boundary). The nota simple may note it; the coastal authority (Demarcación de Costas) can confirm.

8. Tourist licence assumptions

Many buyers plan to cover costs with holiday lets. Regional licences are frozen or restricted in many areas. Since 3 April 2025, a new tourist let in a building with a community of owners needs the express approval of three-fifths of owners. And since 1 July 2025, short-term lets advertised on platforms need a national registration number from the land registry. An existing licence doesn't always transfer to a new owner.

How to check: ask the regional tourism register whether a licence exists and transfers, check the community minutes, and read our holiday home guide.

9. Off-plan guarantees

After the 2008 crash, thousands of buyers lost deposits paid to developers who never finished. The law now requires money paid on account for housing to be guaranteed by a bank guarantee or insurance bond, plus legal interest, and paid into a special account.

How to check: get an individual guarantee certificate in your name for every payment before you make it, and confirm the building licence exists.

10. Arras traps

Most private contracts use arras penitenciales: you lose the deposit if you walk away, and the seller pays back double if they do. Problems come from contracts that don't say which type of arras applies, lack conditions for your mortgage or checks, or set a completion date you can't meet.

How to check: have an independent lawyer (see choosing a property lawyer) read the contract before you pay. Make the deposit conditional on clean searches.

11. Occupied properties

Bank repossessions and cheap listings are sometimes occupied by tenants or squatters. A buyer takes on the problem, and eviction takes time. Read our okupas guide.

How to check: visit, check meters and post, and make vacant possession a condition of completion. Do a final walk-through before signing.

12. Undeclared value

Some sellers still ask for part of the price in cash. Apart from being illegal, it doesn't save what it used to: since 1 January 2022, transfer tax is charged on the higher of the price and the Catastro's valor de referencia. A low declared price also inflates your future capital gain.

How to check: check the reference value on the Catastro's electronic office and pay the full price through the notary.

Other common mistakes buying property in Spain

• Not withholding 3% from a non-resident seller. The buyer must pay it to the tax agency, or the property answers for the seller's tax.
• Using the agent's lawyer. A lawyer who relies on referrals may not push back hard.
• Forgetting purchase costs. Budget roughly 10–14% on top of the price; see the cost of buying property in Spain.

If you'd like help with the first pass, send us the address or referencia catastral through our free property check and we'll reply by email with what the public records show.