When a foreign buyer purchases property in Spain, the real risk is almost never the one they worry about. It is not fraud, it is not a dishonest seller, it is not a property that turns out not to exist. It is far more ordinary than that: it is applying the habits of your own country to a system that simply does not work the same way.
None of this is hidden. It is just that nobody takes the time to explain that the timeline, the roles of each professional and the points at which you are protected sit in completely different places here. At BuenApart we handle around sixty transactions a year in Valencia and its province, mostly for buyers and sellers who do not live in Spain. The seven mistakes below are the ones we see most often, along with what to do instead.
Mistake 1: assuming the notario is your solicitor or conveyancer
Let us be clear from the start, because this is widely misunderstood: Spanish notaries do excellent work. This is not a question of competence or diligence. The issue is not what they do, it is when they enter the process.
In the UK, Ireland and most common law countries, your solicitor or conveyancer is involved from day one. They run the searches, they raise the enquiries, they hold your deposit in a client account, and crucially nothing binds you until exchange of contracts. You are covered from the first day to completion.
In Spain, the notary appears only a few weeks before completion. By that point you have already chosen the property, negotiated the price, signed the contrato de arras and, most importantly, transferred around 10 % of the purchase price directly into the seller’s bank account. Walking away at that stage is very difficult, and very expensive.
So remember this, because everything else in this article follows from it: the real point of no return in a Spanish purchase is not the notary appointment, it is the signing of the arras contract. That is when you need proper support, not three weeks later.
We have covered exactly what a Spanish notary does and does not do here: the role of the notary in Spain.
Mistake 2: treating the arras like a deposit held in escrow
This follows directly from the first mistake, and it is the one that surprises our foreign clients the most.
In 99 % of cases the arras are paid straight into the owner’s bank account. Not into an escrow account, not into a client account, not held by the notary. Into the seller’s account. It is rare for the estate agency marketing the property to be able to receive those funds at all.
Do not confuse the reservation with the arras
What the agency does receive is the reservation fee. This is a much smaller amount, typically between €1,000 and €3,000, whose purpose is to take the property off the market while your offer is presented to the owner.
That sum must be returned to you if your offer is not accepted. That is the rule, and it must be written explicitly into the reservation contract. Check that line before you sign anything. An agency has no legal right to keep this money without cause. The only situation in which it could is where the reservation contract expressly states that the amount constitutes its fee, which is rare. Be vigilant on that specific point.
How arras penitenciales work
The most common form of arras contract in Spain is the arras penitenciales, governed by article 1454 of the Spanish Civil Code. The logic is symmetrical and straightforward:
- You pull out: you forfeit the arras you paid.
- The seller pulls out: they must return double the amount.
On a €250,000 property, once €25,000 has landed in the seller’s account, changing your mind costs you €25,000. There is no equivalent of the pre-exchange freedom you may be used to at home. This is precisely why the arras contract deserves a line by line reading, and why we devote mistake 7 to it.
Mistake 3: assuming a lawyer is legally required
Many buyers, especially those purchasing from abroad, arrive with a fixed belief: you must have a lawyer, it is compulsory. That is what every forum and every website repeats, and it is reinforced by the fact that in most English-speaking countries a solicitor genuinely is unavoidable.
Let us be honest and precise, because the answer is neither yes nor no.
Yes, having your file validated by a lawyer is often an excellent idea. You buy a property once or twice in your lifetime. It is worth being certain. As the saying goes, cheap ends up expensive, and a few hundred euros of legal verification against a purchase worth several hundred thousand rarely makes for a difficult decision. On a complex file, an inheritance, joint ownership, a planning irregularity or an undeclared subdivision, it is genuinely essential.
But it is not a legal obligation, and it is not automatic. If the agency does its job properly, or if you are represented by a buyer’s agent or property hunter on your side, that professional is perfectly able to carry out the checks themselves and to include legal validation by a partner lawyer within their fee. That is exactly what we do.
What actually matters is that somebody competent carries out those checks, particularly if you are a foreign buyer, purchasing remotely, without the local habits and conventions. Whether that is a lawyer, a serious agency or a buyer’s agent, the essential point is that it is not nobody. It is also worth saying that many notary clerks and notaries are extremely experienced, highly reliable and completely up to date on legislative and contractual changes.
We compared both approaches in detail here: property hunter or lawyer, which is the better option for buying in Spain?
Mistake 4: assuming a new build is automatically the better choice
New build equals peace of mind, warranties, energy efficiency and fewer problems. That equation does not always hold in Spain. A new build can be an excellent choice, but it should never be the default one.
Insulation is not always what you imagine
Some developers look, understandably from a business point of view, to keep construction costs down. The result is that you should not assume a new build will be better insulated, either thermally or acoustically. We regularly see recent developments that perform worse on both counts than other types of construction. It is counter-intuitive, and it is a genuine reality on the ground.
Warranties cover problems, they do not prevent them
Yes, you are covered for ten to fifteen years depending on the element. That is a real advantage. But bear in mind that a new build has never been lived in. Any defects have not yet had the chance to reveal themselves. An older apartment has already been through it: its faults are visible, and therefore negotiable.
And then there is character
This is subjective, but it weighs heavily in a purchase decision, especially for a second home. A great many new developments look alike: black and white façades, standardised volumes, a rather anonymous feel. If what you are after is exposed brickwork, something typical, a property with character, the older Valencian stock offers things a new build simply cannot produce.
The tax side also favours resale
One last point, and not a minor one: a new build is subject to 10 % VAT (IVA) plus stamp duty (AJD), whereas a resale property falls under ITP, reduced to 9 % in 2026 in the Valencia Region.
Further reading: ITP dropping to 9 % in Valencia in 2026 and 4 key things to check before buying a new build in Valencia.
Mistake 5: underestimating the real cost of the transaction
Let us start with the good news: in the Valencia Region, ITP has come down to 9 %. That is a genuine saving for buyers.
That said, ITP is not the only line item. Our rule of thumb, the one we give every client before they even start looking, is this:
Budget between 13 % and 15 % of the purchase price to cover all costs, including agency fees where they apply.
Those 13 to 15 % are on top of the asking price, not included in it. On a €250,000 property, your real envelope is somewhere between €282,000 and €287,500. This is exactly where a lot of projects come unstuck, because the budget was built on the asking price rather than the total cost.
And one more trap that looks like nothing: fees are very often quoted excluding VAT. Remember to add it. The same applies to renovation quotes, where the same oversight produces the same unpleasant surprises.
The full breakdown is in our article on property purchase costs in the Valencia Region.
Mistake 6: not speaking to a bank before starting the search
This one costs our clients properties every single week, and it is probably the most frustrating of the seven, because it is entirely avoidable.
The starting logic seems sound. The bank asks first for the documents of the property you intend to buy, so you wait until you have found something before approaching them. Except that once you have found it, you are working to a timeline far too short to position yourself, and you lose the apartment to a buyer who had prepared their financing.
The approach that works
Go to the bank with a property in mind, even if it is not the one you will end up buying. A price, or better still a cadastral reference, is enough to move the file forward. The goal is not final approval, it is to have your scoring, your borrowing capacity and your financing assessment confirmed.
This is perfectly possible with Spanish banks, including as a non-resident. On the deposit side, the ranges we see are as follows:
| Profile | Deposit usually required |
|---|---|
| Spanish resident | 20 % to 30 % of the purchase price |
| Non-resident | 30 % to 40 % of the purchase price |
The cultural point you really cannot afford to miss
Here is the real reason for the urgency. In the UK and Ireland, nothing binds you until exchange of contracts, and you can walk away at any point before that. In France, Belgium and Switzerland, a mortgage condition precedent is a standard clause that everybody takes for granted.
In Spain, conditions precedent and cooling-off rights are rare. Culturally, they are simply not common practice. They do exist, but you have to negotiate them, clause by clause, and the seller is under no obligation to accept. In other words, if your financing falls through after the arras contract has been signed and no clause protects you, you lose your 10 %.
Hence our advice, which never changes: see your bank before you start viewing. You target better, you waste no time, you are more efficient and you buy without stress. Take the opportunity to compare several lenders, and consider a broker if this is to be your main home: bringing the rate down is always worth it, and it is what we recommend.
Our resources on the subject: mortgages for non-residents in Spain, how the tasación works and borrowing at home or in Spain.
Mistake 7: signing an arras contract without the right clauses
We close where everything is decided. Since the arras contract is the point of no return, it is its clauses that protect you, not the notary appointment three weeks later.
Several of them matter. Here are three we use as standard at BuenApart.
1. How the gastos are split
Good news, this one is not up for negotiation: it is set by Spanish law. Article 1455 of the Civil Code provides that the seller bears the cost of the escritura and the buyer that of the first copy and any deeds subsequent to the sale. In practice this works out at roughly 30 % for the buyer and 70 % for the seller on notary fees. This is not a BuenApart convention, it is the default rule for everyone.
Two caveats, though. First, we are talking about notary fees here, not ITP, which remains entirely the buyer’s responsibility. Second, article 1455 ends with the words salvo pacto en contrario, meaning “unless otherwise agreed”: the law applies by default, but a contract can depart from it. So check that yours does not quietly shift the entire cost onto your shoulders.
2. The deadline before completion
Check it every time. Our rule: 60 days minimum, and we recommend 75 days, particularly where financing is involved. A deadline that is too short is a near certain way of forfeiting your arras if the bank runs late.
3. Choosing the notary
It is the buyer who chooses the notary before whom the sale will be signed. That right is yours, so have it written into the contract. In practice it changes a great deal: you complete with a professional you have chosen, not with the one who suits the seller.
The detail everybody forgets: electricity and gas
Have it written in that the seller does not cancel the utility contracts (no se da de baja). In Spain, reconnecting supply is expensive, and finding yourself with no electricity on the day you collect the keys is a classic. That single line in the contract saves you several hundred euros and a great deal of administrative work.
These are only three clauses among others, and every file has its own specifics. Before you get to that stage, also check what the notary will not check for you: community debts, unpaid IBI, actual floor area against the cadastral record and any undeclared subdivisions. All of that is read in one specific document, which we cover here: the nota simple, the essential document before buying. And to see the full sequence, here are the 8 steps of a property purchase in Spain.
What to take away
Buying property in Spain as a foreigner is neither risky nor complicated. It is simply different, and the difference concentrates on one very precise moment: the signing of the arras contract, when 10 % of the price leaves for the seller’s account, several weeks before the notary comes into the picture.
If you only remember three reflexes: speak to a bank before you search, have the property checked by somebody competent, and read your arras contract line by line. The rest follows naturally.
There are many more small questions of this kind, often fascinating ones, that make all the difference between a purchase you control and one you endure. Do get in touch if you have any question about buying in Valencia or its province. We are English-speaking, and we are here on the ground.
Frequently asked questions
Do you legally need a lawyer to buy property in Spain?
No, it is not a legal requirement. It is strongly recommended on complex files (inheritance, joint ownership, planning irregularities, undeclared subdivisions). If you are represented by a serious agency or a buyer’s agent, that professional can carry out the checks and include legal validation by a partner lawyer within their fee. What matters is that the checks are done by someone competent.
When does the notary get involved in a Spanish purchase?
Only a few weeks before completion, unlike a solicitor or conveyancer who is involved from the start. By the time the notary appears, you have already signed the arras contract and transferred around 10 % of the price into the seller’s account. Spanish notaries do excellent work, but securing the early stages of your purchase is not their role.
Where is the deposit held when buying in Spain?
In 99 % of cases the arras go directly into the owner’s bank account, not into an escrow or client account. The agency does receive the reservation fee, usually between €1,000 and €3,000, which must be returned to you if your offer is not accepted. Check that this is written into the reservation contract.
Can I pull out if my mortgage is refused after signing the arras?
Only if a condition precedent was negotiated and written into the arras contract. Unlike the UK, where nothing binds you before exchange, or France and Belgium where a mortgage condition is standard, this is not the norm in Spain and the seller is not obliged to accept it. Without that clause, a refused mortgage means you forfeit the arras.
What budget should I allow on top of the purchase price?
Allow 13 % to 15 % of the purchase price, including agency fees where they apply. In the Valencia Region, ITP came down to 9 % in 2026 for resale property, while new builds are subject to 10 % VAT plus AJD stamp duty. Note that fees are frequently quoted excluding VAT, as are renovation estimates.
What deposit do non-residents need to get a Spanish mortgage?
Generally 30 % to 40 % of the purchase price for a non-resident, against 20 % to 30 % for a resident, depending on profile and lender. The 13 to 15 % in costs come on top. Spanish banks do lend to non-residents, and you can have your scoring confirmed in advance with nothing more than a price or a cadastral reference.