Buying an apartment or villa on the Costa Blanca is a dream for which people save money for years. But it is precisely in the joyful excitement that thousands of euros are often lost. The Spanish market is friendly to foreigners, but it operates by its own rules, and what seems obvious in your country can turn into an unpleasant surprise here.
Over the years of working on the coast, we have seen dozens of stories where buyers lost money not because of fraudsters, but simply because they did not know something. We have compiled the seven most common and expensive mistakes—and explain how to avoid each one.
The main feature of Spanish law that shocks foreigners: debts are "attached" to the property, not to the previous owner. If the previous owner did not pay the IBI tax, fees to the homeowners’ association (comunidad), or bills for water and garbage removal, these debts transfer to you after the deal.
Imagine: you bought a cozy apartment in Torrevieja, and after a month receive a demand to pay community fees arrears for two years—several thousand euros that no one warned you about.
How to avoid: before the deal, request a nota simple from the property registry, a certificate of no debts to the comunidad (certificado de deudas), and confirmation of IBI payment for recent years. A good lawyer or agency does this automatically. If the seller "drags" with these documents—this is a red flag.
Classic mistake: the buyer budgets exactly the advertised price of the property. Then it turns out that an additional 10–13% is needed for taxes and related expenses.
When buying a resale home in the Valencian Community, the main expense is the ITP tax. Good news: from June 1, 2026, its rate is reduced to 9%, which already saves buyers a noticeable amount. But besides it, there are:
How to avoid: budget at least 12% above the property price for resale homes. For new builds, the calculation is different (there it’s VAT/IVA 10% plus stamp duty AJD), and the total amount differs as well. Ask the agency to prepare a full estimate before you fall in love with a particular apartment.
The NIE (foreigner identification number) is your "key" to everything in Spain: without it, you can neither open an account, register property, nor connect utilities. Many buyers find out about this at the last moment when the deal is already scheduled, but they do not yet have the number.
Obtaining NIE can take from several days to several weeks—in high season, queues at consulates and police stations in Alicante stretch.
How to avoid: arrange your NIE at the very beginning, even at the property search stage. This can be done by power of attorney without arriving in person. Then everything will be ready by the time you sign with the notary, and the deal will not fall through because of paperwork.
If you buy in euros but keep money in another currency, you risk losing twice on the exchange rate: at a bad conversion moment and on hidden bank commissions. On a deal of 200,000 euros, even a difference of a couple of percent is thousands of euros that just disappear.
Regular banks often offer unfavorable rates and charge commissions that they do not openly disclose.
How to avoid: compare the bank’s rate with specialized currency exchange services that handle large international transfers and offer better conditions. Plan your conversion in advance rather than on the day you urgently need to pay the deposit.
In Spain, a deposit is usually paid when reserving a property. But the form of this deposit varies, and it determines what will happen to your money if the deal falls through.
Foreigners often transfer the "reserve" directly to the seller or private individual without a clear contract—and then cannot get their money back if something goes wrong. Or they sign a contrato de arras without understanding its conditions: in some variants, if you refuse, the deposit is fully forfeited.
How to avoid: never pay a deposit without a written contract reviewed by your lawyer. Make sure you understand the type of agreement (arras penitenciales, confirmatorias, etc.) and the consequences of withdrawal for each party. The money should go into a protected account, not "into the seller's pocket."
The Costa Blanca market is large and has both professionals and random people presenting themselves as "agents." Spain has an official register of agents (for example, RAICV in the Valencian Community), but not everyone showing you apartments is registered.
The problem with an unverified intermediary is not only the commission. They may hide property defects, fail to check debts, "forget" important documents—and all responsibility ultimately falls on you.
How to avoid: work with an agency that has official registration, a physical office, reviews, and a history of transactions. Ask about membership in professional associations. A true professional cares about your safety as much as the deal because they live on repeat clients and recommendations.
Beautiful photos and fresh renovations easily hide costly issues: dampness and mold (a common coastal problem), electrical problems, illegal extensions, discrepancies between actual area and documents.
This especially applies to resale and older bungalows: what looks cozy in summer can "go bad" from dampness in winter. And an illegal extension (a very common story on the Costa Blanca) can cause problems when reselling and even lead to fines.
How to avoid: order a technical inspection before buying and verify documents (check that all square meters and extensions are legalized). Make sure the property has a valid cédula de habitabilidad—a certificate of habitability. This is inexpensive compared to the cost of a mistake.
Looking at all seven points, one pattern emerges: almost every financial loss happens because of haste and ignorance of local rules, not malicious intent. The Spanish transaction is transparent and safe—if led by someone who knows where to look.
Debt checks, a full estimate of expenses, an NIE arranged in advance, a proper deposit contract, and technical expertise of the property are not bureaucracy but insurance for your dream of a home by the sea.
At Alicante Real Estate, we have been accompanying transactions on the Costa Blanca since 2010 and take on these checks so you can think about the view from your terrace, not whether a stranger's debt will surface. If you plan to buy in 2026—write to us, and we will prepare a free estimate and checklist for your specific property.
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