Buying a Property with Squatters: How It Works and How to Evict Them

Buying an Occupied Property: Opportunities and Risks

In recent years, the rise of occupied properties in Spain has created a growing trend: investors are considering buying houses with squatters due to their below-market price, but this comes with legal and rehabilitation risks.

Growing supply of squatted houses

According to Idealista, the number of occupied properties for sale increased 4.6% in a single quarter. Many owners lack the time, money, or legal knowledge to handle squatters —who can sometimes be aggressive— and prefer to sell.

These properties are cheaper because they come “with a problem”: “what you are buying is a problem,” says Santiago Thomás de Carranza, managing partner at Thomás de Carranza Abogados. There is, however, a specialized buyer profile with legal or financial resources who sees an opportunity in the discount.

Risks and considerations before buying

Purchasing an occupied property usually means buying blind and often without a mortgage. Access to inspect the interior is not possible, increasing the risk of severe damage or major renovation needs.

It is essential that the purchase contract explicitly reflects the situation, releasing the seller from responsibility for the property’s condition. Additionally, the occupants’ profile must be assessed: are they individuals or a family? Are minors involved? These factors directly affect legal timelines for recovery.

“If minors are present, authorities and judges act with greater caution, social services may intervene, and school periods are considered before authorizing eviction,” explains Santiago.

How to evict squatters

For the investment to be profitable, it’s important to plan property recovery. Common approaches include:

1. 1. Direct negotiation: buyers often offer financial compensation for voluntary vacancy.
2. 2. Legal action: if negotiation fails, a judicial eviction process is required, which can take one to two years depending on the case.

Investors must calculate the total cost, including purchase price, legal fees, court expenses, and property renovation.

Conclusion

Buying a property with squatters is not for every investor. It requires legal knowledge, financial resources, and patience. However, for those prepared, these homes can offer interesting opportunities in a market where traditional property prices remain high.