The main risks of buying property in Spain are four: that the property carries charges or debts that pass to the new owner, that it has planning problems, that the seller cannot sell on their own, and losing money because of a badly drafted deposit contract (contrato de arras). Almost all of them can be spotted before signing with a proper review of the paperwork: land registry extract (nota simple), debt certificates and a planning enquiry. We explain what to look at, in what order and what changes if you buy from a private seller or from abroad.

The main risks of buying or investing in a property

  • Registered charges. Mortgages, seizure orders, life interests (usufructos), easements or prohibitions on selling. A mortgage does not disappear because the house changes owner: if it is not cancelled at signing, the home remains liable for it.
  • Debts that follow the home. With community fees, the buyer is liable, with the property itself, for what the seller owes for the current year and the three previous calendar years (Article 9 of the Horizontal Property Act (Ley de Propiedad Horizontal)). Unpaid annual property tax (IBI) also remains attached to the property.
  • Planning problems. Penthouses, extensions or enclosures built without a licence, homes classed as “outside the planning rules” (fuera de ordenación) or built on land where building was not allowed. They can prevent renovations, complicate the mortgage or, if the infringement is not time-barred, end in an order to restore legality.
  • Problems with the seller. That they are not the sole owner (undivided inheritances, jointly owned marital property (bienes gananciales)), that they are in insolvency proceedings or that it is the family home, for the sale of which the Spanish Civil Code requires the consent of both spouses even if it belongs to only one of them.
  • Occupants. A tenant with a contract in force which, in general, the buyer will have to respect, or people living in the house without any legal right who do not leave at signing.
  • Hidden defects. Damp, installations that do not meet regulations or structural problems that cannot be seen on the viewing. To claim against the seller for hidden defects (vicios ocultos), the Civil Code gives a very short time limit: six months from handover.
  • Risks specific to investment. A return that does not materialise, limits on rents in areas declared stressed housing markets (zonas tensionadas) or being unable to use the flat for tourist lets without the regional licence and, since April 2025, without the approval of the owners’ association (comunidad de propietarios) for flats starting that activity.

How to check the charges on a property

The check is done with several documents, because none of them tells the whole story:

  1. Land registry extract from the Land Registry (Registro de la Propiedad). It can be requested at any registry or online on the registrars’ website, stating the reason for the enquiry. It shows who the owner is, how the property is described and what charges are registered. Request it at the start and check it again just before signing; the notary also consults the Land Registry before authorising the deed.
  2. Certificate of debts with the owners’ association, signed by the secretary and countersigned by the president. The law requires it to be provided when the deed is signed, unless the buyer expressly waives it, which is not advisable.
  3. Latest IBI receipt and, if in doubt, a certificate from the town hall that there are no outstanding debts.
  4. Cadastre (Catastro). The cadastral reference and the description (floor area, use) must match the Land Registry and what you see on the viewing. Large differences usually hide undeclared building works.
  5. Planning enquiry at the town hall. Whether the works have a licence, whether any enforcement file is open and what the planning rules allow.

Bear in mind that the land registry extract only reflects what is registered: it says nothing about community fee debts, IBI or works that were never declared.

Risks of a sale between private individuals

Buying without intermediaries saves the estate agent’s commission, but it also removes a layer of checking. The points where most goes wrong are these:

  • The deposit contract. It is the first binding document and the one that causes most upset. If it is agreed as a penitential deposit (arras penitenciales), the buyer who pulls out loses the deposit and the seller who defaults returns it doubled; if the contract does not say so clearly, the courts tend to treat it as a confirmatory deposit (arras confirmatorias), with different consequences. Before paying anything, review the deposit contract.
  • The payment. Better by bank transfer or banker’s draft on the same day as the deed, and with the cancellation of the seller’s mortgage settled at the signing itself: the outstanding amount is paid directly to the bank.
  • The taxes. The buyer of a second-hand home pays transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP), the rate of which is set by each region (autonomous community). Since 2022, the taxable base cannot be lower than the Cadastre’s reference value, so declaring a lower price saves nothing and may lead to a tax check.
  • The handover. Set down in writing the date the keys are handed over, the condition of the home, which furniture stays and who pays the utilities until that day.

Buying a home as a foreigner

In Spain there is no general ban on a foreigner buying a home, but there are specific formalities and risks:

  • NIE. The foreigner’s identification number is essential to sign the deed and pay the taxes.
  • Signing remotely. You can buy with a notarised power of attorney; if it is granted outside Spain, it will normally need an apostille or legalisation and, where applicable, a translation.
  • No visa for buying. Since 3 April 2025 buying property no longer gives the right to the residence visa for investors, the so-called golden visa, which was abolished by Organic Law 1/2025 (Ley Orgánica 1/2025).
  • Non-resident taxes. A non-resident owner pays tax each year on their home even if they do not rent it out, using Form 210. And if it is the seller who does not live in Spain, the buyer must withhold 3% of the price and pay it to the Spanish Tax Agency (Agencia Tributaria).
  • National defence zones. In certain areas of interest for defence, buyers from outside the European Union may need prior military authorisation.

How to reduce the risks before signing

The logical order is this: first the review of the documents (land registry extract, certificates, planning), then the deposit contract and, lastly, the deed. Signing the deposit contract before checking the home is the most expensive mistake, because from then on pulling out costs money. If you want to know which tasks a professional takes on at each step, we explain it in what a property lawyer does.

If you are about to buy or invest and want someone to review the transaction from your side, you can tell a property lawyer about your case: we put you in touch with a specialist who will review charges, contract and deadlines before you sign.

Frequently asked questions

What happens if I buy a home with community fee debts?

The seller still owes them, but the home is liable for the fees for the year of the purchase and the three previous years, so the owners’ association can claim them against the property. That is why you should ask for the debt certificate before signing.

Is it safe to buy a home with only a private contract?

A private contract is valid between the parties, but it cannot be registered at the Land Registry and does not protect you against third parties, for example if the seller sells again or the property is seized for the seller’s debts. The sensible thing is to sign a public deed and register it.

How long do I have to claim for a hidden defect in the home?

Against a private seller, the Civil Code action for hidden defects must be brought within six months of handover. For new builds there are also the warranty periods under the Building Act (Ley de Ordenación de la Edificación).

Can I buy a home in Spain without being a resident?

Yes. You need an NIE and, if you are not going to be at the signing, a notarised power of attorney. As a non-resident you will have annual tax obligations for the home even if you do not rent it out.