A) Due diligence & paperwork
- Not pulling a fresh “nota simple”
Confirms ownership, charges, easements, and embargoes. Use the Colegio de Registradores online service.
- Misunderstanding deposit contracts (“arras”)
Deposit contract (Arras penitenciales) (Civil Code art. 1454), give both parties the right to withdraw from the contract. If the buyer backs out, they lose the deposit. If the seller backs out, they must return double the deposit to the buyer.
If you want enforceable completion rather than an “exit against penalty,” your lawyer may propose confirmatory/penal arrangements or bespoke wording.
- Assuming short-term rental (STR) rights everywhere
Tourist accommodation is regulated by Autonomous Communities and municipalities. The Valencian Community and several cities (Alicante, Valencia, etc.) have zoning limits and suspensions. Always check the local register and any temporary legal pause before modelling STR income as Alicante, Valencia and others periodically suspend or restrict new tourist licences.
- Forgetting new-build warranties and overlooking occupancy paperwork
New residential buildings must include a warranties and structural insurance (seguro decenal) under the Building Act (LOE). The main warranties include:
- A 1-year warranty covering defects in finishes, such as doors, carpentry, or minor electrical faults.
- A 3-year warranty covering defects that affect habitability, like moisture or installation faults.
- A 10-year warranty, known as the “Seguro Decenal” covering structural defects that affect the foundations, support beams, load-bearing walls, and other critical structural elements.
These warranties are mandated by Spanish law (Law 38/1999 – LOE and Spanish Civil Code Article 1591) and start from the date the builder delivers the property, not from the purchase date. They guarantee that any such defects discovered within the respective periods will be repaired by the builder or developer. The 10-year warranty also typically comes in the form of an insurance policy independent of the builder, providing financial protection even in cases such as developer bankruptcy.
Also, in many regions (including the Valencian Community), the first occupancy certificate “licencia de primera ocupación” is issued through a responsible declaration “declaración responsable” process rather than a traditional inspection. If these documents are missing or incomplete, developer will handle over the keys to you and charge you for the property, but it will be impossible to live there as connecting water and electricity or completing the property registration in your name is impossible without first occupancy certificate.
- Skipping the Energy Performance Certificate (EPC / CEE)
In Spain, including Valencia province, it is the property owner or seller who must provide the Certificado de Eficiencia Energética (CEE) when selling a property. The requirement applies to both new and resale properties. The seller is legally obliged to have a valid energy efficiency certificate available from the start of the sales process and must show it to potential buyers.
- The certificate must rate the property’s energy efficiency on a scale from A (most efficient) to G (least efficient).
- The CEE must be issued by a qualified and accredited technician such as an architect or engineer. Price from 150€ to 400€.
- The CEE is valid for 10 years unless major renovations that affect energy efficiency occur. Rules were updated in 2025: Certificates with a G rating (issued after 2021) expire after 5 years.
- As of August 2025, a valid and registered CEE is required not only to sell or rent a property, but also for mortgage valuations and refinancing.
- Targeting too low an EPC rating
While there’s no legal minimum rating today for sale or rent, aim for E or better to reduce retrofit costs and policy risk as EU efficiency standards tighten. Starting from January 1, 2030, properties must have a minimum energy rating of “E” to be legally sold or rented, rising to “D” by 2033
- Community debts and future “derrama” (special assessments)
Under Spain’s Horizontal Property Law (LPH) art. 9.1.e, community debts for the current year plus the previous three“run with the property” and may be claimed from the buyer. Request the last 2–3 meeting acts (actas) and written confirmation from the building administrator stating which works/assessments are approved and when they become enforceable– otherwise you may end up paying them after title transfer.
8. Relying on the “Golden Visa” real-estate route
Spain officially ended its Golden Visa program that allowed residency through a minimum €500,000 real estate investment as of April 4, 2025. This means that since that date, new applications for residency through this investment route are no longer accepted.
B) Finance & tax
1. Overestimating mortgage leverage
Banks typically promise non-resident loans around 70% of the purchase price but in reality it is around 50% of the purchase price so the buyer must provide the remaining 50% (plus taxes and fees). Definately pre-qualify for the loan before signing arras.
2.Tax and obligations for buyers
- Resale properties: the buyer pays ITP (Impuesto de Transmisiones Patrimoniales).
- In the Valencian Community, the rate is 10% (or 11% on the portion above €1,000,000).
- New-build properties: the buyer pays 10% VAT (IVA) + AJD (Stamp Duty).
- AJD in the Valencian Community is 1.5% in 2025, decreasing to 1.4% from 1 June 2026.
Always check the current regional rates before signing, as they can change.
3. Tax and obligations for sellers
- Plusvalía Municipal (capital gains municipality tax):
This is normally paid by the seller, unless both parties agree otherwise in the contract. Approximate calculation can be done with online simulator. Ask your gestor or agent.
There are two calculation methods:
- Objective method (based on cadastral tables)
- Real gain method (based on actual difference between previous and current sale price)
The seller can choose whichever results in lower tax.
- IBI (annual property tax):
IBI is tied to the property, not the owner, meaning the property carries the debt if unpaid. Before the sale, your lawyer or agent should request a certificate of no IBI debt from SUMA (tax office). By law, IBI is shared proportionally between buyer and seller in the year of purchase.
Example: If you buy in October, the seller pays IBI for January–September, and the buyer pays from October–December.
C) Capital Gains Tax (CGT)
When you sell a property in Spain, you generally must pay Capital Gains Tax (CGT) on the profit gained from the sale. The taxable gain is calculated by subtracting the acquisition cost (purchase price plus related expenses) from the sale price (minus selling costs).
1. For residents, the CGT rates in 2025 are progressive:
- 19% for gains up to €6,000
- 21% for gains between €6,001 and €50,000
- 23% for gains between €50,001 and €200,000
- 27% for gains between €200,001 and €300,000
- 30% for gains exceeding €300,000
2. Non-residents are usually taxed at a flat rate:
- 19% for EU/EEA residents
- 24% for non-EU residents
For non-resident sellers, the buyer is required to withhold 3% of the purchase price as an advance on the seller’s CGT liability. It is paid in notary during the signing title deed.
There are certain exemptions and reductions:
- Sellers over 65 years old selling their primary residence may be exempt.
- Reinvestment of proceeds from the sale of the main home into another primary residence within two years can allow exemption or reduction.
- Forgetting non-resident annual taxes
Even if you do not rent out your property in Spain, as a non-resident you still must file an annual tax form called Modelo 210. This tax is based on the cadastral value of the property and assumes a small “imputed” (theoretical) rental income. The rate used is usually 1.1% or 2.0% of the cadastral value, depending on how recently the cadastral valuation was updated.
In 2025, the EU questioned parts of Spain’s tax rules for non-residents, so there may be future changes to how this tax is calculated.
Have a consultation with your gestor (accountant and tax advisor) to calculate taxes.
D) Overall suggestion
- Always get written confirmations from: Town Hall (urban compatibility/occupancy), Regional Tourism Registry (VUT), Certificate from Registry of Property (nota simple), and the Tax Office (SUMA). Laws and municipal ordinances change frequently; your Autonomous Community may impose stricter rules than national law.
- For any tax calculations and formal desicions always consult a qualified gestor (accountant and tax advisor).
*This guide is for information purposes only. It does not constitute legal, financial, or tax advice, nor does it replace consultation with qualified professionals. For decisions on real estate transactions, always seek advice from a licensed lawyer, tax advisor, or relevant specialist.
