The 10 Biggest Mistakes When Buying a House in Spain (and How to Avoid Them)

Buying a house in Spain is a dream come true for many Dutch people. But it can also turn into a nightmare if you are not careful. We have guided hundreds of Dutch buyers, and unfortunately, we have also seen what can go wrong for people who embark on their Spanish adventure without proper guidance.

The good news? All common mistakes can be avoided if you know them. Here are the 10 biggest pitfalls Dutch buyers fall into, and more importantly, how to steer clear of them.

1. Do Not Hire a Lawyer to Save Costs

This is by far the biggest and most expensive mistake. Some buyers think that the notary protects their interests, just like in the Netherlands. That is not the case. The Spanish notary only verifies identities and ensures that the transfer proceeds legally – he does not actively check whether the property is free of debt, was built legally, or that the seller is actually the owner.

What can go wrong: You buy a home with illegal extensions that need to be demolished. You inherit €15,000 in outstanding community fees. The seller turns out not to be the real owner. These are not theoretical scenarios – this really happens.

The solution: Always hire an independent lawyer to conduct due diligence. Yes, it costs €1,500–€2,500, but it can save you tens of thousands of euros in trouble. Read our complete article on why you need both a lawyer and a notary.

2. Underestimating or Forgetting Additional Costs

Many buyers focus solely on the asking price and forget that there are 10-12% in additional costs. They have just enough for the home and the 30% down payment on the mortgage, but forget to budget for transfer tax, notary fees, lawyer fees, and land registry fees.

What can go wrong: You have to borrow money from your family at the last minute, you have to postpone your purchase, or you no longer have a buffer for furniture and the first few months of utilities.

The solution: Calculate the full investment from the start. For a €250,000 home, you need approximately €275,000–€280,000, including all costs. View our complete overview of all costs before setting a budget.

3. Applying for Your Nie Number Too Late

Many buyers only realize they need a NIE number when they have found a home and are ready to sign the contract. The problem? An NIE application takes 4-8 weeks through the Dutch consulate.

What can go wrong: You find your dream home, but another buyer with a NIE number ready can act faster and snatch it away right from under your nose. Or the seller loses patience and moves on to another buyer.

The solution: Apply for your NIE number as soon as you are seriously considering buying in Spain, even before you actively start looking for properties. At Hibaroo, we help you navigate this process smoothly.

4. Buying Without a Personal Viewing

Photos and videos can be misleading. The home looks beautiful online, but in reality, the neighborhood is noisy, it is located on a busy road, or the maintenance is much worse than the photos suggest.

What can go wrong: You buy an apartment that looks perfect online, but turns out to be located directly beneath a busy restaurant with noise disturbances until 2 a.m. Or the "sea view" that was promised turns out to be a small patch of blue between two buildings.

The solution: Always visit the home in person, and if possible, at different times of the day. Check the neighborhood during the day and in the evening. Walk around and talk to neighbors if you can. No photo can replace physical presence.

5. Choosing the Wrong Location for Your Needs

A common mistake is falling in love with a home without considering whether the location suits your lifestyle. You buy a quiet villa in the hills, but only then realize that you have to drive 30 minutes for groceries, that there are no social activities, and that you feel lonely.

What can go wrong: You buy in a busy tourist area because it is lively, but the summer crowds and noise turn out to be unbearable. Or you buy in a quiet Spanish village but miss the Dutch social contacts and amenities.

The solution: Think carefully about what you really want. Costa del Sol or Costa Blanca? Busy and international, or quiet and authentic? Close to the beach or in the hills? Stay in different areas for a week before you decide.

6. Being Too Optimistic About Rental Income

If you buy as an investment and count on rental income to pay the mortgage, a common mistake is using overly optimistic figures. You calculate with 30 weeks of rentals per year and high prices, but the reality is 20 weeks with lower occupancy and higher costs than expected.

What can go wrong: Your mortgage and other expenses are €1,500 per month, but your net rental income turns out to be €800 per month. You have to contribute an additional €700 per month out of your own pocket – something you hadn't counted on.

The solution: Calculate conservatively. Use realistic occupancy rates (20-25 weeks), factor in 40-50% for costs (management, cleaning, maintenance), and budget for taxes. Read our article on realistic rental yields before buying as an investment.

7. Failure to Inspect Illegal Structures

Many homes in Spain have illegal extensions or renovations without a permit. An extended veranda, an extra bedroom, a swimming pool, a studio – all possibly built without the proper permits.

What can go wrong: The municipality discovers the illegal construction and demands demolition. You have to pay €10,000–€30,000 for demolition, and the value of your home drops significantly. In extreme cases, the entire home may be illegal and everything must be demolished.

The solution: Have your lawyer check whether everything that has been built corresponds to the building permits. Compare the title deed with the physical home. If there are discrepancies, ask for proof that it is legal or negotiate a lower price to offset the risk.

8. Do Not Arrange Mortgage Pre-approval

You go to view properties without knowing exactly how much you can borrow from a Spanish bank. You find a perfect home for €300,000, make an offer, and only then discover that the bank is only willing to lend you €180,000 instead of the €210,000 you need.

What can go wrong: You lose time and money on homes that are out of your reach. Or worse, you sign a contract and cannot afford it financially, causing you to lose your down payment.

The solution: Arrange a mortgage pre-scan before you start seriously looking at homes. Know exactly how much you can borrow and what your monthly costs will be. At Hibaroo, we always do this before we seriously start looking for homes.

9. Ignoring Community Costs and Long-term Costs

You find an apartment for a great price – €180,000 for a two-bedroom with a pool! You snap it up without asking about the community fees. Later, it turns out these are €250 per month, plus property tax of €800 per year, plus insurance, plus utilities. Your total monthly costs are €500-€600, whereas you had budgeted only €300.

What can go wrong: The monthly costs actually make the "cheap" home more expensive than a more expensive home with lower costs. Or the community has overdue maintenance and announces a special levy of €5,000 per owner for roof repairs.

The solution: Always ask about community charges and review the minutes of recent community meetings. Are the costs stable or rising? Is there any overdue maintenance? What major projects are planned? Also check the annual ongoing costs before you buy.

10. Deciding Too Quickly Under Pressure

"There are three other people interested, you have to decide now!" This is a sales tactic that works because people are afraid of missing out. You feel pressure, sign quickly, and realize later that you didn't do enough research.

What can go wrong: You sign a contract with unfavorable terms. You pay a non-refundable deposit without your lawyer inspecting the property. You miss red flags that you would have seen with some calm thought.

The solution: Always take the time for due diligence, regardless of the pressure. A good salesperson and real estate agent understand that you need time for lawyer checks. If they are impatient and apply pressure, that is a red flag in itself. Walk away then. There are always more homes.

Bonus Mistake: Not Engaging Professional Guidance

The ultimate mistake is thinking that you can navigate the entire process yourself without help. Spain has different legislation, different processes, and different risks than the Netherlands. Even with good research, you miss things that a local expert sees immediately.

What can go wrong: You make several of the above mistakes simply because you don't know what you don't know. You might save €3,000 in real estate agent fees, but make mistakes that cost you €20,000.

The solution: Work with a real estate agent who represents your interests, not the seller's. At Hibaroo, we are fully transparent about the entire process, connect you with reliable lawyers and financial experts, and ensure you are protected from start to finish.

This is How You Avoid All Mistakes: The Checklist

Here is your concrete action plan to avoid these mistakes:

• Start your NIE application early (4-8 weeks required)

• Arrange a mortgage pre-scan to determine your budget

• Budget an additional 15% on top of the purchase price for all costs

• Engage an independent lawyer from the start

• Visit properties in person , multiple times if possible

• Check community fees and historical meeting minutes

• Research the location – does it fit your lifestyle?

• Have illegal structures inspected by your lawyer

• When renting out: be conservative with occupancy rates and costs

• Take your time – do not let yourself be pressured

• Work with professionals who represent your interests

Start Your Spanish Trip the Right Way

These mistakes may seem daunting, but the good news is that they can all be avoided with the right knowledge and guidance. Thousands of Dutch buyers successfully purchase real estate in Spain every year—not because they were lucky, but because they were prepared.

At Hibaroo, our mission is to ensure you do not fall into these traps. We guide you through the entire process, from your first NIE application to receiving the keys. We connect you with reliable lawyers, assist with mortgage pre-approval, and ensure all due diligence is conducted thoroughly.

Ready to get off to the right start? View our current property listings on the Costa del Sol and Costa Blanca, or contact us for a no-obligation discussion about how we can help you.

Your Spanish dream is within reach – and with the right guidance, it becomes reality without the nightmares.