7 biggest mistakes when moving to Spain (And how to fix them!)
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Relocating to Spain can be an exciting adventure, but it’s not without its challenges, I speak from personal experience. When I moved to Spain six years ago, I quickly learned that the process is far more complicated than just packing a suitcase and booking a flight. Between navigating Spain’s bureaucratic, understanding tax obligations, and choosing the right visa, there’s a lot to consider.
To help make your transition smoother, I’ve put together a list of the most common mistakes expats make when moving to Spain. These are the pitfalls I’ve either experienced myself or have seen others struggle with—and more importantly, I’ll share exactly how to avoid them so you can start your new life in Spain with confidence.
Mistake #1: Not Understanding How Tax Residency Works
One of the most common (and costly) mistakes expats make is not knowing when they officially become tax residents in Spain. Unlike in some countries, you don’t have to formally register as a resident to be liable for Spanish taxes. The rules are clear: if you spend more than 183 days in Spain in a calendar year, you are automatically considered a tax resident.
What does this mean in practice? Being a tax resident in Spain means you may have to declare and pay taxes on your worldwide income. This includes income from rental properties, investments, or businesses in your home country. Even if you stay under the 183-day threshold, you could still be considered a Spanish tax resident if your economic interests or family ties are primarily in Spain.
The Spanish tax system can be complex, and not understanding how it works could result in unexpected tax bills. Many expats assume they will only be taxed on their Spanish income, only to find out that their foreign earnings, pension, or investments are also taxable under Spanish law.
How to Avoid This Mistake
Plan your stay strategically—If you don’t want to trigger tax residency, carefully track your days in Spain and ensure you spend less than 183 days in the country.
Consider the Beckham Law (if you’re a U.S. citizen)—If you qualify, this special tax regime caps income tax at 24% for six years and allows you to exclude foreign income from taxation.
Speak to a tax specialist before your move—Every situation is different, and getting professional advice tailored to your financial situation can save you thousands in the long run.
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Mistake #2:Choosing the Wrong Visa (or Misunderstanding the Rules)
Spain offers several visa options, but many expats either apply for the wrong one or don’t fully understand the restrictions that come with it. The visa you choose has major implications for how you can live and work in Spain, and choosing incorrectly could mean visa rejection, legal issues, or unexpected tax obligations.
For example, the Golden Visa, which allowed property buyers to obtain residency, is no longer available unless you already purchased property before April 2025. Many expats looking for an easy residency option are now left scrambling for alternatives.
The Non-Lucrative Visa remains a popular choice, but it has strict financial requirements and does not allow you to work, even remotely. Expats who unknowingly continue working for their foreign employer while on this visa risk violating their visa conditions, which could lead to fines or even deportation.
The Digital Nomad Visa, designed for remote workers, is a fantastic alternative—but it also comes with strict income and employment eligibility requirements. U.S. citizens, in particular, face challenges proving social security contributions, which can complicate the application process.
How to Avoid This Mistake
Research visa options carefully—Each visa has different financial, work, and residency requirements. Make sure the visa you apply for aligns with your long-term plans in Spain.
If you work remotely, the Digital Nomad Visa is likely your best option—but make sure you meet all income and tax requirements before applying.
Consult with an immigration specialist—Visa rules can be complex and change frequently. Getting expert guidance can help you avoid unnecessary delays or rejections.
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Book Your Free ConsultationMistake #3:Not Factoring in Regional Tax Differences
Many expats assume that taxes in Spain are the same no matter where you live. In reality, tax rules vary significantly by region, and choosing the wrong location could cost you thousands in unexpected taxes.
For example, Madrid has no wealth tax, making it an attractive destination for high-net-worth individuals. Meanwhile, other regions—such as Catalonia or the Balearic Islands—have high wealth tax rates, which could significantly impact those with substantial assets. Inheritance and property taxes also differ from region to region, making it crucial to understand local tax laws before deciding where to settle.
How to Avoid This Mistake
Do your research before choosing where to live—If you have substantial assets or investment income, you may benefit from living in a region with lower tax rates.
Consult a tax advisor—They can help you optimize your tax situation based on your residency and financial circumstances.
Mistake #4: Buying Property Too Quickly
The idea of owning a home in Spain is exciting, but rushing into a property purchase without understanding the tax implications can be a costly mistake. The Spanish real estate market operates very differently from countries like the U.S. or UK, and failing to research the legal and financial aspects of buying property can lead to unexpected expenses, high taxes, and long-term financial strain.
In early 2025, the Spanish government proposed a significant change to property taxation for non-EU residents. Prime Minister Pedro Sánchez announced plans to impose a tax of up to 100% on real estate purchases made by non-EU non-resident buyers. This initiative aims to address housing affordability by curbing foreign investment, which is perceived to drive up property prices. Notably, in 2023, non-EU residents accounted for approximately 27,000 property purchases in Spain, representing less than 5% of total sales.
One of the other biggest overlooked costs is the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales - ITP), which applies to resale properties. While the standard national rate is 6%, in reality, only Madrid and Navarra apply this rate. In most other regions, ITP is significantly higher and varies between 6% and 13%, depending on where you buy.
How ITP Can Affect Your Property Purchase
Let’s say you’re buying a €300,000 property. The ITP rate varies drastically depending on the region:
Madrid (6%) → €18,000 tax bill
Catalonia (10%) → €30,000 tax bill (€12,000 more than Madrid!)
Balearic Islands (Up to 13%) → €39,000 tax bill
That’s a €21,000 difference just based on where you buy! Many expats overlook this tax, only to be shocked when they see the final cost of their purchase.
Here’s a breakdown of current ITP rates by region (2025):
6%
6%
6.5%
7%
7%
7%
8%
8%
9%
9%
8-10%
8-10%
8-10%
8-11%
10-11%
10-11%
8-13%
Other Hidden Costs to Consider
Aside from ITP, other major costs associated with buying property in Spain include:
Closing costs—which can be 12-15% of the purchase price, depending on the region.
Mortgage requirements—Non-residents typically need 30-35% down payment to secure a mortgage.
Wealth tax implications—Regions like Madrid have no wealth tax, but places like Catalonia and the Balearic Islands do.
How to Avoid This Mistake
Rent first before buying—This gives you time to understand the market, explore different neighborhoods, and ensure Spain is the right fit for your long-term plans.
Work with English-speaking real estate agents and mortgage brokers—They can guide you through the legal and financial aspects of buying property in Spain.
Secure your NIE number before starting the process—Without it, you won’t be able to sign contracts or apply for a mortgage.
Research regional tax rates—If affordability is key, buying in Madrid, Navarra, or the Canary Islands might save you thousands in taxes.
Check for ITP reductions—Some communities offer lower rates for first-time buyers, families with children, or energy-efficient homes. Always ask if you qualify.
Mistake #5: Assuming Public Healthcare is Free for Everyone
Spain has one of the best public healthcare systems in the world, but many expats are surprised to learn that it’s not free for everyone.
If you’re moving to Spain on a Non-Lucrative Visa or Digital Nomad Visa, you must have private health insurance, as you won’t automatically qualify for public healthcare. Even those with residency may not gain immediate access if they haven’t contributed to the Spanish social security system.
How to Avoid This Mistake
Budget for private health insurance—Expect to pay between €50-€150 per month, depending on your coverage.
Once you become a permanent resident, you can access Spain’s public healthcare system, but you may need to enroll and make contributions first.
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Find Your Best PlanMistake #6: Underestimating Bureaucracy & Slow Processes
Before moving to Spain, I had read about the country’s infamous bureaucracy, but I naively thought, how bad can it really be? The answer: very bad. What I expected to take a few weeks ended up stretching into months, and at times, it felt like I was stuck in an endless loop of paperwork, appointments, and waiting.
When I first arrived, I needed to apply for my NIE number (foreigner identification number). I assumed I could get an appointment within a week or two and quickly check it off my list. Instead, it took months to secure an appointment, and when I finally got one, I was missing a minor document, which meant I had to reschedule and start the waiting process all over again.
Visa processing times are just as unpredictable. I’ve heard countless stories from fellow expats who expected a straightforward application process, only to find themselves stuck in limbo for months, waiting for approvals with little to no updates from immigration offices.
How to Avoid This Mistake
Start paperwork as early as possible—Visa applications, NIE requests, and residency permits take time. The earlier you start, the better.
Hire a gestor—I cannot stress this enough! A gestor is a local expert who helps navigate Spain’s bureaucratic maze. They can book appointments, prepare paperwork, and ensure everything is submitted correctly. Trust me, it’s money well spent.
Be patient and persistent—Things will take longer than expected. Plan ahead and give yourself extra time for everything.
Mistake #7: Not Learning Spanish Before Moving
I’ll admit it when I first moved to Spain, I thought I could get by with just English. I figured that since I was moving to a big city, there would be plenty of English speakers, and I could learn Spanish at my own pace. That was a huge mistake.
While you can certainly find English speakers in major cities like Barcelona and Madrid, daily life is conducted in Spanish. From grocery stores to doctor’s offices, bank appointments to government paperwork, most official processes and services are only in Spanish.
I remember my first attempt at setting up a phone plan. I walked into a store, assuming the staff would speak English, only to be met with a blank stare when I started speaking. I fumbled through some broken Spanish, pointing at what I needed, but it was clear that not knowing the language was going to be a huge obstacle in my daily life.
Another challenge came when I had to visit the doctor. Medical professionals in Spain are excellent, but unless you go to an international clinic, most doctors primarily speak Spanish. Trying to explain symptoms and understand treatment plans without a good grasp of the language was frustrating and, at times, stressful.
How to Avoid This Mistake
Start learning Spanish before you arrive—Even basic phrases will make a huge difference.
Use language-learning apps like LingoPie, Babbel, or Italki to practice.
Join local language exchanges or take in-person classes—The best way to improve is by immersing yourself in the language and speaking with locals.
Moving to Spain is an incredible experience, but preparation is key. By avoiding these common mistakes, you’ll have a smoother, more enjoyable transition.
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