HOW DOES THE PROCEDURE OF PURCHASE OF REAL ESTATE IN TENERIFE.
When you choose and decide to buy a property, as a rule, a private contract of booking (contrato de arras) is signed, which is the first legal document to be signed during the purchase process. After signing this contract and making a deposit (usually 10% of the purchase price), the seller must remove the property from the market and freeze the agreed purchase price. This gives you guarantees that the house chosen by you will be removed from the market until you are ready to complete the transaction with the notary and the house will not be sold to anyone else. We will prepare a booking agreement, and we will accompany you during the transaction, including transfer from a notary and guaranteeing that the property will be entered in your name in the Spanish land register.
HOW ARE THE HIGH COSTS OF PURCHASE OF REAL ESTATE IN TENERIFE.
The buyer of real estate in Tenerife should be prepared to cover the following costs:
- 6.5% of the tax on buying a sale (from the announced price of the property to a notary)
- Notary services (depending on the transaction, usually between 400-700 euros)
- registration fees in the Spanish land register (about 300-600 euros)
The deadline for payment is 30 days after the transaction.
In some cases, the cost can be divided between real estate and the cost of furniture.
WHAT IS THE OWNER OF PROPERTY IN TENERIFE?
As a property owner in Tenerife, you bear the following costs:
- IBI (annual property tax varies from property and area, from 50 euros to more than 1000 euros for villas)
- Utilities: electricity, water, and sometimes gas (depending on consumption)
- collection of garbage and sewage (usually in the form of quarterly deductions of 25 euros)
- general fees (if the property is located within the community).
It is obligatory to have a bank account in Spain for the purchase of real estate?
There is no law obliging the owner to have a bank account in Spain. Communal payments can be made from a bank account from any country. However, when buying from a notary, most sellers accept only a check approved by the bank issued by a Spanish bank. Therefore, you will most likely need a bank account in Spain.
In case of a problem with opening a bank account in Spain, the transaction can be made through our depositary account of the agency.
Is it possible to get a mortgage in the Canary Islands?
Banks usually lend up to 60% to non-residents of Spain. Please contact us for contact information about banks that can assist you in this matter.
Is it necessary to be in Tenerife to buy real estate?
We recommend that you make a review and get acquainted with the object prior to reservation. However, for signing a private booking contract you do not need to be in Spain. If you want, we can prepare a contract, send it to you by e-mail, you will print it out and send it to us signed. Then you will need confirmation of the bank transfer of the agreed deposit.
Do you need a lawyer to buy property in Tenerife?
You can contact a lawyer if you want. Although it is not obligatory. Our agency and notary will prepare all the documents.
Is it possible to trade on the price of real estate or deposit?
As a rule, the final purchase price, deposit and other terms of purchase (for example, the date of signing at a notary) can be discussed, but this depends on the flexibility of the owner. Before the signing of the reservation contract, there is sometimes a place for negotiation at the final price.
WHAT IS NECESSARY TO BUY A PROPERTY ON TENERIFE?
If you are a citizen of European Union you can buy a property on Tenerife without any limitations. For the notary closing the buyer needs to have valid passport or ID and NIE (spanish tax number for foreigners). If you are buying with us, our agency will assist you with the procedure of getting the NIE.
WHO PAYS REAL ESTATE AGENCY COMISSION ON TENERIFE?
It is the seller who pays agency commission on Tenerife.
WHAT ARE THE COSTS FOR THE SELLER ON TENERIFE?
Seller is responsible for agency commission, plusvalia tax and personal income tax. If you are non resident the 3% income tax on the sale value will be retained at the closing at the notary.
Plusvalia depends on how many years you own the property and the catastral ground value (valor catastral de suelo).
IS IT POSSIBLE TO BECOME A RESIDENT OF TENERIFE?
Buying a property on Tenerife does not automatically give you residency in Spain. There are additional requirements. European citizens will be asked to present a valid health insurance and income (or a minimum deposited of little bit less than 6.000 EUR in a Spanish bank). Additionally for non European citizens golden visa program exists in Spain. Golden visa enables you to receive a 5 year Schengen Visa and spanish residency if you buy a property on Tenerife valued over 500.000 EUR.