How to Check a Property Before Buying on the Costa del Sol – An Investor’s Checklist
Buying a property on the Costa del Sol, especially for rental or investment purposes, should be preceded by a detailed analysis. In practice, most problems can be avoided if the key issues are verified before signing the contract, not after the purchase.
The checklist below shows step by step what to look at to ensure a safe and informed decision.
1. Legal Status of the Property
The first step is to verify the legal status of the property. You should check:
- who the actual owner of the property is,
- whether the property is free of liens, mortgages, or encumbrances,
- whether the surface area in the documents matches the actual condition,
- whether there are unresolved inheritance issues or co-ownership.
The key document for this analysis is the Nota Simple from the Registro de la Propiedad.
2. Licencia de Primera Ocupación (LPO)
The LPO is one of the most important documents, especially if rental activity is planned.
Before buying, you should verify:
- whether the property has a valid Licencia de Primera Ocupación,
- whether the LPO reflects the actual layout of the property,
- whether any changes were made without notification (e.g. terraces, extensions, partitions).
Missing or inconsistent LPO documentation may prevent obtaining a tourist rental licence or cause problems when selling the property in the future.
3. Homeowners’ Association (Comunidad)
The homeowners’ association plays a crucial role today, especially for short-term rentals.
You should check:
- the community statutes (estatutos),
- whether there is a ban or restrictions on tourist rentals,
- the amount of monthly community fees,
- whether the community is in debt or planning major investments.
Buying a property in a community that does not allow tourist rentals can completely change the purpose of the investment.
4. Location – More Than Just an Address
Location is not only about the city or district, but about the real surroundings of the property.
Pay attention to:
- walking distance to the beach, town centre, or services,
- infrastructure: parking, transport, shops,
- noise levels, neighbours, and traffic intensity,
- the attractiveness of the location for tourists or long-term tenants.
A good location helps protect the property’s value even during weaker market periods.
5. Property Functionality
A property should be assessed from a functional perspective, not only an aesthetic one.
The analysis should include:
- layout and number of bathrooms,
- access to natural daylight,
- terrace, balcony, or outdoor space,
- ease of maintenance and cleaning.
Functionality directly affects tenant interest and ongoing maintenance costs.
6. Fixed and Operating Costs
Before buying, it is essential to understand the full cost picture, not just the purchase price.
You should include:
- community fees,
- local taxes (IBI, rubbish collection),
- utilities and ongoing maintenance,
- management and service costs,
- a reserve for repairs and refurbishment.
A lack of realistic cost calculation often leads to disappointment after purchase.
7. Purchase Goal and Strategy
Every property should have a clearly defined purpose:
- private use,
- short-term rental,
- long-term rental,
- a mixed-use model.
It is also worth considering an exit strategy – how easy the property will be to sell in the future and for which type of buyer.
Summary
Checking a property before buying on the Costa del Sol is a process that requires local knowledge and experience. Most investment mistakes can be avoided if the analysis is carried out at an early stage.
Buying a property should not be an emotional decision, but a conscious choice based on facts, documentation, and real market conditions.
