The difference between a successful property investment in Estepona and a disappointing one often comes down to what was — and wasn't — checked before the purchase. This guide focuses on the due diligence process: what to verify, what questions to ask, and what the most common mistakes look like in practice.
The Most Expensive Mistakes We See
After eight years of advising investors in Estepona, these are the mistakes that cost people the most money:
Buying without a VUT licence check
Short-term holiday rental is the income strategy for most investment buyers on the Costa del Sol. But a significant number of apartments cannot be licensed — particularly in Malaga city (independent street access required) and Fuengirola (same restriction), and in buildings where the community of owners has voted to prohibit tourist rental or where the required 3/5 majority approval has not been obtained. Buyers who discover this after completion find they own a property they cannot legally let as a holiday rental. This is entirely avoidable with a pre-purchase licence check.
Ignoring the community of owners
Since April 2025, properties in buildings with a community of owners need a 3/5 majority vote approving tourist rental activity before a VUT licence can be granted. Community statutes may also prohibit it entirely. Both must be checked before you make an offer, not after.
Underestimating buying costs
Budget 10–13% on top of the purchase price. For a €300,000 property this means €30,000–€39,000 in taxes, notary, registry and legal fees. This is not negotiable and it is not recoverable in the short term. Buyers who are surprised by this typically did not take independent legal advice early enough.
Using the vendor's lawyer or agent's recommended lawyer
Your lawyer must be independent — appointed by you, working exclusively for your interests. A lawyer recommended by the selling agent or vendor may have divided loyalties. Always appoint your own lawyer from your own research or from a trusted independent introduction.
The Full Due Diligence Checklist
Mortgages for Non-Resident Investors
Spanish banks lend to non-residents, typically up to 70% of the property's appraised value. The process requires income documentation, credit history, a Spanish NIE and a bank valuation. We work with specialist mortgage brokers who have established relationships with Spanish lenders and can advise on realistic borrowing capacity before you begin your search — which is valuable information to have before you are in an active negotiation.
What Glaser Group Handles
Property identification and viewings in Estepona, negotiation on your behalf, coordination with your independent lawyer, VUT licence and NRUA registration post-completion, and rental management setup through Glaser Holiday Rentals. No buyer fees — our fee is paid by the vendor.
