Real Estate Law · Legal
Published April 2025 · 8 min read · By Real Estate Lawyer Costa del Sol
The most dangerous thing a buyer can do is sign an arras agreement and pay a deposit before due diligence is complete. Once you have paid a deposit under an arras penitenciales agreement, withdrawing means forfeiting it. Sellers and agents sometimes pressure buyers to sign quickly — resist. No legitimate seller refuses to wait one to two weeks for due diligence to be completed.
It is still common on the Costa del Sol for agents to refer buyers to a specific law firm — sometimes the same firm that acts for the seller or developer. A lawyer who acts for both parties cannot give you independent advice. Always instruct your own independent lawyer and pay them yourself directly.
Estate agents in Spain are not regulated legal professionals. They have no obligation to carry out due diligence and no liability if legal problems arise. Some perform basic checks; many do not. An agent's job is to complete the sale — your lawyer's job is to protect your interests.
Rural properties in Spain (campo) carry specific planning risks. Many have unlicensed extensions, buildings on rural land that cannot be legalised, or are situated in protected areas. In some cases, illegal buildings have been demolished by the authorities. A planning check at the town hall is essential for any rural property.
Many buyers budget only for the purchase price. The actual cost is 10–13% more once you add ITP or VAT + AJD, notary fees, Land Registry fees and legal fees. On a €400,000 purchase, this is €40,000–€52,000 in additional costs.
The NIE (Número de Identificación de Extranjero) must be in place before the notary deed is signed. Applying late can delay or jeopardise the completion date. Start the NIE application as soon as you have agreed terms on a property — your lawyer can do this for you using a power of attorney.
Non-resident property owners in Spain must file an annual tax return (Modelo 210) whether or not they rent the property. If the property is not rented, there is an imputed rental income tax on approximately 2% of the catastral value. If it is rented (short or long term), the rental income must be declared. Failure to file carries penalties and surcharges. Your lawyer can connect you with a tax specialist to manage these obligations.
If you buy off-plan and the developer becomes insolvent without bank guarantees in place, you can lose all your stage payments. This happened to thousands of buyers in Spain during the 2008 crisis. Since 2015, the law requires developers to provide guarantees — but not all comply, and the guarantees are not always valid. Your lawyer must verify them before you pay anything.
In Spain, property debts transfer to the new owner at completion. This includes unpaid community fees, IBI (local property tax), utility arrears and mortgages. A specialist lawyer carries out debt checks at the Land Registry, town hall and community of owners before you sign anything.
You can, but it is a serious conflict of interest. The seller's lawyer or the agency's recommended solicitor works in the seller's interest, not yours. Your lawyer must be independent — appointed by you, paid by you, with no connection to the selling side.
No. Many buyers in Spain are asked to sign a reservation contract and pay a deposit within days of viewing. Once signed, the deposit is difficult to recover if problems emerge. Always instruct an independent lawyer before signing any contract or paying any money.
Get a free consultation with Jacob — an English-speaking real estate lawyer on the Costa del Sol. We guide you through every step.