Buying a property on the Costa del Sol may be the start of a new life in Spain, a place for family holidays or a long-term investment. Whatever your plans, the legal checks should begin before you sign a reservation agreement or pay a deposit.
Properties that appear similar can have very different legal risks. An apartment may be subject to community restrictions on holiday rentals. A villa may include an extension or swimming pool that does not match the official records. Rental income may be advertised without the necessary permissions having been confirmed. These issues do not always prevent a purchase. What matters is identifying them early, while you still have the option to negotiate, ask for documents or walk away.
1. Check the Reservation Agreement Before Paying a Deposit
The Costa del Sol property market can move quickly. You may find a home you love, hear that another buyer is interested and feel pressure to reserve it immediately. That is exactly when it pays to slow down.
A reservation agreement may only be a few pages long, but it can determine what happens to your deposit if the legal checks reveal a problem. Before signing or transferring money, you should understand:
- Who will receive and hold the deposit
- Whether the deposit is refundable
- What happens if legal or planning issues are discovered
- Whether the purchase depends on mortgage approval
- Which deadlines apply
- Whether your lawyer has enough time to complete the necessary checks
A verbal promise from an agent or seller may not protect you if it is missing from the written agreement. Ask a Spanish property lawyer to review the terms before you become financially committed.
2. Confirm That Holiday Rentals Are Actually Permitted
“Excellent rental potential” is a common phrase in Costa del Sol property listings. It should not be treated as a legal guarantee. The fact that the current owner rents the property—or that neighbouring apartments appear on Airbnb or Booking.com—does not automatically mean that you will be allowed to operate it as a tourist rental after buying it.
Tourist accommodation in Andalucía is subject to registration and operating requirements set by the Junta de Andalucía. The local town hall and the community of owners may also affect whether the property can be used for short-term rentals.
Since 3 April 2025, an owner wishing to start a tourist-rental activity in a community of owners must first obtain the community’s express approval. This requires support from three-fifths of the owners, representing three-fifths of the participation quotas, as explained by Spain’s Ministry of Housing and Urban Agenda. Different rules may apply where the activity was already operating before that date, so the history of the property should be checked. The Junta de Andalucía also provides guidance on the registration and operating requirements for tourist-use properties. Before relying on rental income, ask your lawyer to check:
- The property’s current tourist-registration position
- Whether an existing registration can continue after the sale
- The community statutes and recent meeting decisions
- Local town hall requirements
- Whether the property meets the rules for operating as a holiday rental
Rental projections should not form part of your financial plan until the legal position has been confirmed.
3. Review the Community of Owners
Apartments, penthouses and many townhouses on the Costa del Sol form part of a community of owners. The community manages shared areas and services such as swimming pools, gardens, lifts, security and building maintenance.
These facilities can make a property easier to enjoy and maintain, particularly when you do not live in Spain full-time. They also create ongoing financial and legal obligations. Before committing to the purchase, your lawyer should review:
- Whether the seller is up to date with community fees
- Recent meeting minutes
- Community statutes and internal rules
- Planned building works or extraordinary contributions
- Proposed fee increases
- Restrictions relating to rentals, pets, noise, terraces or communal areas
Under Spain’s Horizontal Property Law, some unpaid community fees can follow the property after the sale, including fees from the year of purchase and the previous three calendar years. The seller should normally provide a certificate confirming the payment position.
Do not assume that unusually low community fees are always good news. In an older development, they may mean that maintenance has been delayed or that significant expenditure will be needed later.
4. Check Alterations and the Official Property Records
Extra living space can add considerable appeal to a Costa del Sol property. An enclosed terrace, converted basement, covered patio or additional bedroom may make a home appear larger and more valuable. However, the space you can see during a viewing is not necessarily the space that is legally recognised.
Alterations may have required planning permission, community approval or an update to the official property records. This is particularly important for apartments, penthouses and townhouses where external alterations may affect the appearance or common elements of the building.
Villas can raise similar concerns when swimming pools, guest accommodation, garages, storage buildings or extensions have been added over time. As part of the legal review, the physical property should be compared with:
- The title deed
- The Spanish Land Registry
- The Catastro
- Available planning and licence records
- Community approvals, where relevant
The Land Registry records registered ownership, rights and charges. The Catastro is an administrative record containing information such as the property’s location, use, surface area, cadastral value and physical description.
Differences between the property and the records do not always mean that the purchase must be abandoned. They may, however, affect a mortgage application, insurance, taxation, future alterations or your ability to sell the property later. The key question is not only what you saw during the viewing, but what you will legally own.
5. Match the Checks to the Type of Property
An apartment is not necessarily more legally complicated than a villa, the risks are simply different. With an apartment or townhouse, many of the checks will relate to the community of owners, including fees, rental restrictions, terraces, parking and storage. For a villa, greater attention may be needed in relation to:
- Plot boundaries
- Land classification
- Building licences
- Extensions and outbuildings
- Swimming pools
- Access roads
- Utilities
- Differences between the registered description and the property on the ground
The checks should also reflect your intended use. A property being purchased as a permanent home may raise different questions from one being bought primarily for short-term rentals or future redevelopment.
6. Decide How the Property Will Be Owned
How you own the property can be as important as which property you choose. You may be purchasing alone, with a spouse or partner, with children or other relatives, or with unequal financial contributions. Some buyers also consider purchasing through a company. The ownership structure may affect:
- Tax
- Inheritance and succession
- Control of the property
- The division of future sale proceeds
- What happens after a relationship breakdown?
- Estate administration
- What happens if one buyer contributes more money than the other
Changing the structure after completion may be complicated and expensive. It is therefore important to discuss your family circumstances, tax position and long-term plans before the ownership details are finalised. This is particularly relevant for unmarried couples, blended families, buyers relocating permanently to Spain and families purchasing together.
7. Consider Tax, Wills and Estate Planning
Receiving the keys is not the end of the legal and financial planning. Owning Spanish property may affect your tax obligations, inheritance arrangements and reporting responsibilities. The advice you need will depend on how you plan to use the property:
- A holiday home
- A rental investment
- A retirement property
- A permanent residence
- A property shared with family members
The purchase process is a sensible time to consider matters such as Spanish Wills, non-resident taxation, rental income, inheritance planning and the wider ownership structure.
A retired couple moving permanently to Mijas Costa may require different advice from a UK-based investor buying an apartment in Estepona. Planning from the beginning is usually easier than trying to reorganise the position after completion.
Warning Signs to Take Seriously
Not every legal issue means that you should walk away. Some problems can be corrected, while others may give you room to renegotiate the price. You should, however, pause and obtain advice when:
- You are being rushed to pay a deposit
- Important property or community documents are unavailable
- Rental income is promoted without confirmation that the use is permitted
- The property includes alterations that may not have been approved
- Verbal assurances are not reflected in the written documents
The earlier these issues are identified, the more options you are likely to have.
How PCC Legal Can Help
We help foreign buyers throughout the Spanish conveyancing process, from reviewing the reservation agreement and carrying out legal due diligence to completion, registration and post-purchase planning.
Whether you are buying in La Cala de Mijas, Mijas Costa, Marbella, Estepona, Fuengirola or elsewhere on the Costa del Sol, obtaining advice before paying a deposit can help protect your money and your negotiating position.
Speak to PCC Legal before signing a reservation agreement, relying on projected rental income or becoming financially committed to a property.
Book an appointment with our conveyancing team.
This article provides general information only. It is not a substitute for legal or tax advice based on your individual circumstances.
FAQs
Do I need a lawyer when buying property on the Costa del Sol?
It is not generally a legal requirement to appoint a lawyer when buying property in Spain, but it is strongly recommended, particularly for foreign buyers. A Spanish property lawyer can review contracts, verify ownership, identify debts or restrictions and explain the risks before you commit.
What should be checked before paying a reservation deposit?
You should understand whether the deposit is refundable, who will hold it, what deadlines apply, what happens if legal issues are discovered and whether enough time is allowed for legal checks. Ideally, a lawyer should review the reservation agreement before you sign or pay.
Can I rent out my Costa del Sol property as a holiday rental?
Not automatically. The property may need to satisfy registration, community and municipal requirements. The legal position should be confirmed before you rely on holiday rental income.
What is the difference between the Land Registry and the Catastro?
The Land Registry focuses on registered ownership, rights and charges affecting the property. The Catastro is an administrative register containing information such as location, use, surface area, cadastral value and physical description. Both should be reviewed as part of the purchase.
What happens if a terrace or extension was not properly approved?
The answer depends on the facts. Some issues may be clarified or resolved, while others may affect mortgage approval, resale or future legal risk. The important point is to identify the issue before committing.
Can unpaid community fees become my responsibility after buying?
Potentially. Your lawyer should check whether the seller is up to date with community payments and obtain the appropriate certificate before completion. The review should also identify any approved extraordinary contributions, planned works or increases that may create additional costs after you purchase.
Can an existing tourist rental registration continue after the property is sold?
This should not be assumed. The position may depend on when the rental activity began, the property’s registration status, community approval and local requirements. Your lawyer should confirm whether the existing arrangement can continue after the change of ownership before you rely on projected rental income.
Are the legal checks different for an apartment and a villa?
The ownership percentages and financial contributions should be discussed before completion. Buyers should consider who will control the property, how sale proceeds will be divided and what happens if one owner dies, wants to sell or has contributed more than the others. Changing the structure later may be expensive.
Do foreign property owners need a Spanish Will?
A Spanish Will is not necessarily compulsory, but it should be considered when purchasing property in Spain. It can form part of wider inheritance and estate planning and may make the future administration of Spanish assets more straightforward. Advice should reflect your residence, nationality, family circumstances and existing Wills.
