Buying a home is likely the most significant financial decision you will make in your life. Yet, many buyers rush into the process without enough information or let themselves be carried away by the emotion of the moment.
The result, all too often, is legal headaches, unexpected bills, or properties that don’t live up to their promises. This guide covers the 12 most frequent mistakes made by buyers in Spain, with special focus on aspects that make a difference in the Canary Islands and Fuerteventura, where tax particularities and the new-build market have their own rules.
Mistake 1: Failing to Check the “Nota Simple” from the Land Registry
The nota simple is the document that confirms who the real owner of a property is and whether it has any outstanding charges: mortgages, liens, easements, or urban planning encumbrances. Many buyers request it too late, just before signing before a notary, when they have already paid a deposit and find it difficult to turn back.
What to do: Request the nota simple at the start of the process, as soon as there is genuine interest in the property. It costs less than ten euros via the online Land Registry and can save you thousands.
⚠️ Common Case: A buyer pays a €20,000 deposit for a flat. Weeks later, they discover the property has an embargo from the Tax Agency that the seller hadn’t declared. Recovering a deposit in that scenario can require a lengthy legal process.
Mistake 2: Miscalculating Closing Costs and Taxes
The price shown in the listing is only part of what you will pay. You must add taxes and formalisation costs, which in Spain range between 10% and 15% of the purchase price, depending on the autonomous community and the type of property.
Main concepts include:
- New Build: IGIC (7% in the Canaries vs. 10% VAT/IVA in the rest of Spain) + Stamp Duty (AJD – 0.75% in the Canaries).
- Resale (Second-hand): Property Transfer Tax (ITP – 6.5% in the Canaries, between 6% and 10% elsewhere depending on the region).
- Common Expenses: Notary fees (€600–€1,200), Land Registry (€400–€700), and agency fees (gestoría) if handled by the bank.
- Bank Valuation: Between €300 and €600 if a mortgage is required.
In the Canary Islands, taxation is more favourable than on the mainland, reducing the total cost of the operation. For a new-build home worth €300,000 in Fuerteventura, IGIC amounts to €21,000, compared to the €30,000 VAT a buyer would pay in Madrid or Barcelona. More info in our guide to taxes and expenses for new builds in Fuerteventura.
Tax Comparison: Canary Islands vs. Mainland Spain
| Concept | Canary Islands / Fuerteventura | Mainland Spain |
|---|---|---|
| Transfer Tax (Resale) | 6.5% ITP | 6–10% ITP (varies by region) |
| VAT / IGIC (New Build) | 7% IGIC | 10% VAT (IVA) |
| Stamp Duty (AJD) | 0.75% | 0.5–2% (varies by region) |
| Inheritance Tax | Very low or 0% | Up to 34% (varies by region) |
| Income Tax (Regional) | Reduced brackets | Standard or higher |
Mistake 3: Signing a Deposit Contract Without Mortgage Approval
A deposit contract (Arras Penitenciales) is a serious commitment. If the buyer cannot complete the purchase, they lose the deposit paid—usually 10% of the purchase price. Signing this before having a mortgage approved is one of the most costly and frequent errors.
Banks can take three to six weeks to give a definitive answer, and they may deny financing or approve a lower amount than requested. If this happens after signing the arras, the buyer loses their money.
What to do: Get mortgage pre-approval before starting your active search. Always ask for a “subject to finance” clause to be included in the contract.
Mistake 4: Ignoring the Status of the Homeowners’ Association
When buying a property in a building or complex, the new owner automatically inherits any outstanding debts the property has with the community (Comunidad). If the seller owes back fees, the buyer may be forced to pay them.
Even more importantly: check if the community has general debts, approved or pending works (lift, facade, roof), and the status of the reserve fund. A healthy community is an asset; one with pending special levies (derramas) is a hidden liability.
What to request: A certificate of being up to date with community payments, minutes from the last three meetings, and the latest balance sheet.
Mistake 5: Failing to Review the Energy Performance Certificate
Since 2013, an Energy Performance Certificate (EPC) is mandatory for selling or renting a property in Spain. However, many buyers don’t read it or don’t understand the implications.
A home with a D, E, or F rating can mean a difference of hundreds of euros per month in energy bills compared to an A or B rating. Furthermore, EU regulations will soon require energy efficiency renovations for poorly rated buildings, leading to extra costs.
Fuerteventura Particularity: Fuerteventura is in the most favourable climate zone in Spain for passive energy efficiency. New builds here often achieve A or B ratings thanks to the climate, solar orientation, and aerothermal systems.
Mistake 6: Letting Emotion Take Over and Skipping a Second Visit
The first visit usually happens under the best conditions: good light, an attentive seller, positive vibes. Problems are often found on the second visit, in a calmer state, at a different time of day, and ideally accompanied by someone with technical or construction knowledge.
Aspects often missed during the first visit:
- Dampness in ceilings or corners, especially in bathrooms and kitchens.
- The state of electrical and plumbing installations (ask for the year of the last renovation).
- Real orientation of the flat and hours of direct sunlight.
- Noise levels from neighbours, traffic, and local commercial activity.
- State of the entrance, lift, common areas, and parking.
Mistake 7: Not Checking the Urban Planning Status
Not everything that is built is legalised. In Spain, there are many properties with undeclared works, extensions without a licence, or even buildings on non-urban land. Buying one of these could lead to a demolition order or the inability to sell it normally later.
Where to check: At the Town Hall (Ayuntamiento) or via the municipal online planning service, you can check the first occupancy licence (licencia de primera ocupación), any open disciplinary files, and the land classification.
Mistake 8: Overestimating Long-term Repayment Capacity
Lenders calculate the maximum monthly instalment based on current income, but life changes. Variable interest rates, job loss, unforeseen expenses, or changes in family situation can turn a manageable mortgage into a serious problem.
The general rule is that the mortgage payment should not exceed 30-35% of the household’s net monthly income, and a savings cushion of three to six months’ worth of fixed costs should remain before signing.
Mistake 9: Not Reading the Contract Before Signing
It sounds obvious, but the pressure of the process and the length of contracts lead many to sign without reading. Clauses on delivery deadlines, penalties for delay, construction qualities, or cancellation conditions can make a massive difference.
For new builds, the contract can be 20 to 40 pages long. It is worth reading it thoroughly or, if in doubt, showing it to a lawyer first. A one-hour legal consultation is always cheaper than discovering an abusive clause after signing.
Mistake 10: Foregoing a Technical Property Inspection
A technical inspection by an independent surveyor or architect costs between €300 and €600 and can uncover structural issues, faulty installations, or poor renovations that aren’t visible to the naked eye. For properties over 20 years old, this investment pays for itself quickly.
Mistake 11: Forgetting Maintenance and Community Fees
The purchase price and mortgage aren’t the only costs. You must budget for annual Property Tax (IBI), rubbish collection fees, home insurance, monthly community fees, and a reserve fund for repairs.
In complexes with pools, gardens, or concierge services, community fees can be significant. In Fuerteventura, these usually range between €80 and €250 per month depending on the facilities.
Mistake 12: Buying Without Independent Professional Advice
The real estate agent presenting the property works for the seller, not the buyer. Their goal is to close the sale. This doesn’t mean they act in bad faith, but their interests aren’t necessarily aligned with yours.
Hiring an independent lawyer, especially for complex operations (buying off-plan, foreign buyers, or properties with liens), is a basic protection. In Spain, the buyer assumes all legal responsibility for the operation at the moment of signing.
Buying in the Canaries and Fuerteventura: Key Differences
- IGIC instead of VAT: The Canary Island Indirect Tax (7%) replaces VAT (10%) on new builds, saving up to €9,000 on a €300,000 home.
- Reduced ITP: Property Transfer Tax in the Canaries is 6.5% for resale, lower than in most mainland regions.
- Mandatory NIE for Foreigners: Non-residents need an Foreigner Identification Number (NIE) before signing any deeds. This can take weeks to process.
- Spanish Bank Account: Banks require a Spanish account for new-build purchases and mortgages. Opening one early saves time.
💡 Tip: If you are considering buying in Fuerteventura as an investment or residence, we recommend reading our full guide to taxes and expenses for new-build homes in Fuerteventura.
Summary: Pre-purchase Checklist
- Request the Nota Simple from the Land Registry.
- Verify the seller is up to date with community fees.
- Get mortgage pre-approval before signing a deposit contract.
- Calculate the total budget including 10-15% for taxes/fees.
- Perform a second visit, ideally with a surveyor.
- Read the full contract or consult a lawyer.
- Check urban planning status at the Town Hall.
- Verify the Energy Performance Certificate.
Frequently Asked Questions
What are the most serious mistakes when buying in Spain?
The most impactful mistakes are: failing to check for liens or debts before paying a deposit, not budgeting for closing costs (taxes, notary, registry), and ignoring the community’s financial health.
How much deposit do I need to buy a house in Spain?
Generally, you need at least 20% of the purchase price (as banks usually lend up to 80%) plus 10-15% for taxes and fees. In total, having 30-35% of the property value saved is recommended.
Can I negotiate the price of a new-build home?
In new builds, price negotiation is tighter than in resale, but you can negotiate extras: included parking, storage rooms, finishings, or delivery dates. In high-demand areas like Fuerteventura, it’s best to negotiate during early marketing phases.
Thinking of buying a new-build home in Fuerteventura?
At Casilla de Costa, we have been building homes in Fuerteventura for years with the highest standards of quality and energy efficiency. Our team can guide you through the entire purchase process, from selection to key handover, with no surprises or hidden costs.
Check out our available new-build developments and talk to our team today.
