What are common pitfalls non-residents face with Costa del Sol property taxes?

Non-residents buying property in Costa del Sol frequently encounter several pitfalls related to property taxes. A primary issue is underestimating the total tax burden, which extends beyond the initial purchase tax (ITP or VAT) to include annual taxes like IBI (local property tax), wealth tax (Impuesto sobre el Patrimonio), and non-resident income tax (IRNR) on imputed rental income, even if the property isn't rented out. Many non-residents also overlook the importance of obtaining an NIE (Número de Identificación de Extranjero) early in the process, which is crucial for all tax-related transactions and can cause significant delays if not secured promptly. Another common mistake is failing to engage a specialized tax advisor or a lawyer with expertise in Spanish property law and non-resident taxation. This can lead to incorrect tax declarations, missed deadlines, and potential penalties. Furthermore, non-residents often misunderstand the different tax implications of purchasing new build versus resale properties, particularly concerning VAT (for new builds) versus ITP (for resales), and the associated stamp duty (AJD). Finally, a significant pitfall is neglecting to update personal details or property ownership information with the relevant tax authorities, such as the local town hall or the Agencia Tributaria, leading to outdated tax bills being sent to old addresses or incorrect ownership records, which can cause administrative headaches and potential fines.