Selling your Costa del Sol home as a foreign owner? 5 pitfalls that can ruin your sale

Selling your Costa del Sol home is one of the biggest financial decisions you’ll ever make. Yet many foreign owners lose tens of thousands of euros — not because their property isn’t valuable, but because they unknowingly make avoidable mistakes.

It’s not enough to just list your home and hope for the best. The Spanish market works differently, buyers are well-advised, and every misstep can cost you time, money, and peace of mind.

Before you put your property on the market, make sure you don’t fall into the same traps as so many others. Here are the 5 critical pitfalls that can ruin your sale — and what you need to know to avoid them.

1. Incorrect pricing

Sellers often set the price based on emotions rather than the market. They compare their home to what they’ve invested in it or to a neighbor’s asking price, instead of looking at real sales data. As a result, the property stays on the market too long and quickly becomes a “stale listing.”

2. Ignoring taxes

Sellers often forget that in Spain, selling a property involves capital gains tax (IRPF), as well as the plusvalía municipal tax. In addition, there is a 3% withholding applied to non-resident sellers. Many owners fail to plan for these and other costs in advance, leading to incorrect pricing and unrealistic expectations.

3. Missing or incomplete paperwork

Many sellers don’t have all the required documents ready — such as the occupancy certificate, energy certificate, proof of property tax (IBI) and community fees, among others. Any missing paperwork can put the sale on hold, create long delays, or even cause the deal to collapse.

4. Poor preparation and photos

If a property looks messy, dark, or neglected in photos, buyers will simply scroll past it. First impressions are everything — a badly presented home attracts fewer viewings, lingers on the market longer, and usually ends up selling for less. In Costa del Sol’s competitive market, unprofessional photos or lack of staging can cost you tens of thousands of euros in the final sale price.

5. No strategic marketing

Many sellers think a simple portal listing is enough. In reality, a successful sale requires a professional mix of international property portals, social media campaigns, video tours, drone photography, direct marketing to qualified buyers, and collaboration networks between agents (similar to MLS systems).

Without a clear strategy, your property risks being ignored. The consequences are:

• Fewer inquiries – buyers don’t even notice your listing.

• Fewer viewings – serious buyers move on to better-presented homes.

• Longer time on the market – the property becomes a “stale listing.”

• Lower sale price – in the end, you may have to accept less than your property is worth.

Selling your Costa del Sol home can be rewarding — but only if you avoid the traps that cost other foreign owners thousands of euros.

The biggest risks are not in your property itself, but in how you prepare and present it. Setting the wrong price, overlooking taxes, missing key documents, neglecting presentation, or relying only on a basic listing can turn a smooth sale into months of frustration and lost money.

The good news? Each of these pitfalls can be avoided with the right guidance. When handled correctly, your home sells faster, attracts stronger offers, and keeps you in control of the process.

Don’t let simple mistakes ruin your sale — be one of the few sellers who gets it right from the start.