Buying Property in Valencia: The Essential Do's and Don'ts
Buying property in a foreign country is one of the most significant financial decisions you'll ever make. Done well, with the right preparation and the right team, it can be smooth, exciting, and life-changing. Done without proper guidance, it can be stressful, expensive, and full of avoidable mistakes.
After years of helping international buyers purchase properties in Valencia and the Costa Blanca, we've seen what works — and what doesn't. Here is our honest, practical guide to the essential do's and don'ts of buying property in Valencia.
THE DO'S
Do get independent legal representation from day one
This is the single most important thing on this list. Every international buyer in Spain needs their own lawyer — one who works exclusively for them, with no connection to the selling agent, developer, or vendor.
Spain's property market has its complexities: hidden debts that transfer to the new owner, illegal extensions, planning irregularities, title disputes. A specialist property lawyer carries out thorough due diligence on every aspect of the purchase before you commit a single euro. Without this protection, you are taking an enormous and entirely unnecessary risk.
Maria, our in-house property lawyer with over 25 years of experience, has saved clients from purchasing properties with serious legal issues on multiple occasions. Her involvement from the very beginning of the process — not just at the notary at the end — is what makes the difference.
Do get your NIE sorted early
Your NIE — Número de Identificación de Extranjero — is your Spanish tax identification number, and you cannot complete a property purchase in Spain without one. It's also required for opening a Spanish bank account, signing contracts, and almost every official process you'll encounter.
We won't sugarcoat it — obtaining a NIE has become increasingly difficult in recent years. Appointments at Spanish consulates and police stations are scarce, waiting times are long, and the process can become a serious bottleneck if you leave it too late.
This is where having the right connections makes all the difference. Through Maria's established relationships at the notary, we are able to arrange a provisional NIE assignment — meaning the process that could otherwise delay your purchase by weeks or months can be handled efficiently, even at short notice.
It's one of those things that sounds like a small detail but can make or break a purchase timeline. And it's exactly the kind of insider knowledge and local connection that our clients rely on us for.
Do open a Spanish bank account
You'll need a Spanish bank account to complete your purchase — for transferring funds, paying taxes, setting up utility direct debits, and paying community fees after completion. Some banks are more international-buyer-friendly than others, and the documentation requirements can vary.
We have strong relationships with banks across Valencia who are experienced in working with international clients and can make this process significantly smoother.
Do budget properly for buying costs
The purchase price is not the only cost. In Valencia, budget an additional 10-15% on top of the purchase price for buying costs. For a €400,000 property, that's potentially €40,000-€60,000 in additional costs — not something you want to discover at the last minute.
Here's where that money goes:
Transfer Tax (ITP): 10% of the purchase price
Legal fees: 1-2% (minimum approximately €2,000 plus VAT)
Notary fees: approximately 1%
Real estate agency commission: 3-5% plus VAT
New build properties: add 1.5% registration fee
Always request a full written cost breakdown before committing to anything.
Do think carefully about currency exchange
If you're transferring funds from the US or Canada, currency exchange rates have never been more important to factor into your budget. At today's rate of €1 = $1.16(rate updated here on June 2026), a €400,000 property costs approximately $464,000 — and a €600,000 property comes in at nearly $700,000. With the dollar under pressure against the euro in recent months, American buyers are effectively paying significantly more for their Spanish property than they would have done even a year ago.
A movement of just 2-3 cents on the exchange rate represents $8,000-$12,000 on a €400,000 purchase — real money that can be protected with the right planning.
This is why we strongly recommend speaking to a specialist currency exchange provider early in your search — not at the point of purchase. Locking in a rate in advance can protect you from further dollar weakness while you complete your due diligence and legal checks.
Be ready to move quickly when you find the right property
Valencia's property market is moving extremely fast. The best properties in the most desirable neighbourhoods are being snapped up the moment they hit the market — sometimes within hours of listing.
This doesn't mean you should rush due diligence — never skip that. But it does mean having your NIE ready, your bank account open, your finances in order, and your lawyer briefed before you start seriously searching. When the right property comes along, you need to be ready to move.
THE DON'TS
Don't use the selling agent's recommended lawyer
This is one of the most common mistakes we see international buyers make. Selling agents sometimes recommend lawyers they work with regularly — but that lawyer's primary relationship is with the agent, not with you.
You need a lawyer who is entirely independent and whose only loyalty is to your interests. This is non-negotiable.
Don't sign anything or pay any deposit before your lawyer has reviewed it
Once you've paid a reservation fee or signed a preliminary contract, you are legally committed to the purchase — or at risk of losing your deposit if you pull out. Make sure your lawyer has reviewed every document and is satisfied before any money changes hands.
Some contracts contain clauses that are heavily weighted in the seller's favour. Others contain commitments you may not have fully understood. Your lawyer's job is to review, flag, and where necessary renegotiate — before you sign.
Don't assume Spanish mortgages work like mortgages back home
If you're financing your purchase with a Spanish mortgage, be aware that the rules are different from what many of our clients — particularly those from the US and UK — are used to.
Non-residents can typically borrow a maximum of 70% of the purchase or appraisal value — whichever is lower. Crucially, buying costs cannot be included in the mortgage — you need that full 10-15% available as cash regardless of whether you're taking a mortgage.
Spanish banks are thorough and the process takes time. Start conversations with banks early and get your financial documentation in order well in advance.
Don't make a decision without an honest independent evaluation
Many of our clients purchase their homes entirely remotely — and do so with complete confidence. We take detailed videos, conduct live video calls walking through every room, and cover everything from natural light and noise levels to the condition of the building and the feel of the neighbourhood at different times of day.
But here's the crucial difference between what we do and what a selling agent does: we give you our honest, candid assessment. If the terrace is smaller than it looks in the photos, we'll tell you. If the street feels noisy at rush hour, we'll tell you. If the finish isn't worth the asking price, we'll tell you.
A selling agent's job is to sell the property. Our job is to find you the right one — and sometimes that means talking you out of the wrong one. That independence, and that candour, is what our clients trust us for.
Don't let excitement override due diligence
Valencia is a genuinely wonderful place to live and buy property. The lifestyle, the food, the culture, the climate — it's easy to fall in love quickly. But falling in love with a property is not a reason to skip steps.
We have seen buyers lose significant sums because they moved too fast, trusted verbal assurances, skipped legal checks, or paid deposits before proper due diligence was complete. The excitement of buying in Valencia is completely understandable — but the process needs to be respected.
The good news is that with the right team around you, the process can be both thorough and efficient. You don't have to choose between moving quickly and doing things properly.
How Encantada World Helps You Get It Right
Everything in this guide is something we handle for our clients as a matter of course. From the NIE and bank account to the property search, legal due diligence, and everything that follows completion — we are with you every step of the way.
Stephanie brings the market knowledge, the local network, and the determination to find you the right property — often before it reaches the open market.
Maria brings the legal expertise, the due diligence rigour, and the tenacity to protect your purchase from every angle.
Together, the Encantada World team takes the stress out of buying property in Valencia — and puts the excitement back in where it belongs.
Get in touch with Encantada World to arrange your complimentary consultation.
