Buying your first property in Spain: what to pay attention to

Intro

Buying a property internationally can be incredibly exciting! Whether you plan to use it as your summer home, rent it out when you’re not around, or live in it year-round, you’ll want to make sure you’ve made a smart investment.  

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In this piece, I am going to talk about the key issues to watch out for when buying a flat in Spain, covering both resale properties and new builds. So, without further ado, here are 8 important factors to consider while purchasing a real-estate in Spain. 

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What to look for when buying investment property in Spain – 8 things to consider

Alignment with your lifestyle (and plans)

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This is the single-most important factor. Are you planning to rent the property to tourists or treat it as your summer house? Or maybe, you want to relocate and work remotely from Spain?

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If you’re looking to make an earning from rentals, the first thing to do is check if you can get a tourist licence at the property you’re considering. Some neighbourhoods observe a ban on vacation rentals. Others might allow it, but charge you way higher community fees, treating your apartment as potentially problematic. 

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From what I’ve seen, it’s pretty common to get 3x the regular community fee value. Once you quench the numbers, you could see that the added costs would barely guarantee any ROI. 

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Now, if you want to work remotely from your new Spanish home, I recommend checking the internet signal in your chosen location. It’s highly unlikely you’ll come across any completely blacked-out areas – Spain has an internet access coverage of over 96%. But these statistics won’t tell you if the signal is strong enough to simultaneously handle multiple online tools, video calls, etc. An internet signal amplifier might be enough to solve the problem, but I wouldn’t leave that up to chance. Check with the seller and agency.

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To sum up this section, think of all your must haves and check with the realtor if the property ticks all these boxes.
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Location 

Some people dream of having a remote villa, away from the bustling city vibe, others want the contrary. 

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Even if you’re part of the first group, thinking “I can stock up on groceries once a week and I don’t need anything else”, I still believe you should prepare yourself for different scenarios. Think of situations like your car breaking down, or needing to go to a clinic if you’re feeling ill.

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I suggest looking at the property listing and checking the distance to crucial services and amenities. Can you get there by foot, if need be? Many listings feature a “within walking distance” phrase, but it’s super subjective depending on your age, physical condition, and terrain. It’s easier to walk 1 km on flat terrain than it is to walk half that distance upward.

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At a high-level, whether you’re planning to get a place in a rural area or town, I recommend checking:

• distance to highway
• accessibility to rail
• closest grocery store, pharmacy, and clinic.

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Also, I’d say that the rule of thumb is – the better you can communicate in Spanish, the more you can afford to live in a rural area, where English isn’t as common as in coastal towns.

Neighbours

Problematic neighbours can ruin the experience of living in your dream home. Constant noise or arguments can prove really troublesome. It’s best to ask the seller if they have ever had to report the neighbours to the police or another authority. If they’ve made a legal dispute, they’re legally obliged to tell you. 

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Don’t leave it up to chance – try to find out as much information about your future neighbours as you can. Even though the Spanish law lets you file a complaint if other residents cause trouble, it might take you weeks or even months to build a solid case. And before any action is taken, you’ll have to enter mediations first, which in some cases might cause even more problems. The neighbours could intentionally make your life harder after finding out you’re entering the legal route. 

Age of the home 

Older houses can be incredibly charming, but the truth is, the older the property the more likely it is to need renovations – and with that comes a higher risk of major structural problems. 

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Look out for cracks in the wall or trees that might affect the property (especially if they’re old and at risk of falling). Even if the house appears modern on the photos with pristine walls, it doesn’t guarantee it’s totally free from structural issues. Believe me, it’s not uncommon for an owner to redecorate a room just to cover dampness or cracks – despite such actions being illegal. 

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If you decide to renovate the property yourself, you’ll have to secure a work permit. The type you’ll need depends on your plans for the house. If you’re only making small changes then a building permit or a minor works permit, also known as licencia or permiso de obra menor will be enough.

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However, if you plan to make structural changes, such as modifying partition walls or altering the room layout, you’ll need a major building permit.

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Drains and guttering

When buying a flat in Spain, be sure to check the drains and guttering as replacing them can be expensive. This might be tricky, as you’d have to visit the property when it’s raining to spot any leakages. 

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It might be even harder with drains and pipes as they’re hidden underground. I think it’s best to hire a professional crew who’ll be able to assess the condition of the drains and pipes just by inspecting the property. They’ll also use a CCTV camera to check if the installation is waterproof. 

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This surely adds a lot of extra work, and not all sellers will be willing to go through the process. For those who aren't, it’s better to stay away from old villas. 

Potential mould

This isn’t a common problem in Costa del Sol, but if you’re also looking at properties West of Gibraltar, then this is something you must be aware of. A lot of older homes that are closer to the Atlantic coast have issues with mould, particularly after winter months when humidity can be in the 85-90% range.

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The more humid seasons an old building has to endure, the higher the chance its exterior walls will be covered with mould. That is, unless the building has had insulation done – make sure to ask about this when speaking to the seller or realtor.

Ownership history

Once again, this only applies to resale apartments and homes. Ownership records are available to the public to anyone who can prove that they have a ‘legitimate interest’ – someone considering buying a flat in Spain (or a house) definitely qualifies as that.

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You can obtain a copy from the Land Registry (LR) responsible for handling deeds for properties in the region.

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The good news is you don’t have to pay a personal visit to the LR office. You can access records online, and there’s an English version of the site that’ll make things even easier.

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Has the place you’re looking at repeatedly changed hands? If so, this could hint that there were some serious issues either with the property or the area. Try to find out why the current owner is selling – and if you’re not in direct contact with them (yes, you’ve guessed it), ask the real estate agent. 

Checking if Okupas are a problem

If you’ve done a bit of research on the real-estate market in Spain, then you’ve probably come across okupas. These are individuals who are illegally occupying a property that is uninhabited. 

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I recommend talking to your potential future neighbours to find out if they’ve ever had any issues with squatters or if they know of anyone in the area who has. Some regions like Costa Brava and Costa Blanca are more prone to the okupas problem. Luckily, Costa del Sol is mostly free from it. 

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That’s because this area of Spain’s Mediterranean coast has a lot of newly-built properties, which are rather luxurious and have strict security measures. It’s also a very popular destination for both tourists and expats, so it’s difficult to find an estate, which is vacant. A lot of properties occupied by squatters are either completely abandoned by the owners or are taken over banks, and aren’t overseen by anyone until the property is sold. 

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To learn more about Okupas and why they’re not a major problem in Costa del Sol in our dedicated article.

How to buy property in Spain? Take time for your due diligence

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As you can surely already tell, it’s much easier to go with a new apartment or home when buying in Spain. There are no previous owners, potential cracks in the wall, or mouldy old walls. You get a clean slate, which makes for a safer investment. 

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From my end, I can only add that – if you haven’t made your mind up on the area yet – you should definitely consider Costa del Sol. It stands out compared to many other regions not only due to safety and warm temperatures all year round, but because it has the highest number of new investments. Construction companies offer guarantees, so you don’t have to worry about structural issues or a massive modernization to make the property you bought truly feel like your new home.

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To learn more about what to look out for when buying your property in Spain, read our dedicated article on the most common mistakes from first-time buyers – and how to avoid falling in their footsteps. 

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