Tenerife
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The majority of our clients are looking to buy a property in the Canary Islands. But what does the actual buying process look like in Spain, and what should you take into consideration when buying a property in the Canary Islands? Here’s what you need to know:
Deciding where to buy a property
Whether you have been visiting the same Canary island for years, or fell in love after one visit, it is good to narrow down your preferred property location. It will save you a lot of time and several viewing trips if you already have an idea of the area you prefer, and will make it much easier to narrow down your search.
In Lanzarote, some of the most popular areas include Puerto del Carmen, Playa Blanca and Matagorda. For Tenerife; Los Cristianos and Playa de las Americas are in high demand. Knowing which area you prefer and why you do so will help in narrowing down your search.
Logically, some of these popular areas may be more expensive than you initially thought. Whatsapp us if you’re unsure what you can buy in your price range. As always, the market changes constantly and each seller has a different motivation and urgency for selling.
Financing your property purchase and next steps
Getting a mortgage in Spain usually involves an easier process than most other countries. You will need to show the most relevant paperwork and will receive an answer shortly after. Contact us and we can refer you to a well known mortgage lender that have access to all the Spanish banks and can compare rates. Your local bank outside Spain is rarely the best option.
When you sign the purchase contract, both the seller and you commit to the conditions that are stated in the contract. When you sign the document another instalment is paid. This is usually around 10% of the purchase price.
You will also need to pay a deposit to make a reservation on the property until the contract is signed. Your independent lawyer will make sure you are safe to go ahead with the purchase at this stage.
Another essential part of the buying process in Spain is to get an N.I.E (Non-resident identification) number. Luckily this is very easy to arrange, and many agents will be able to help you with this.
After this, a Notary will arrange a date for you to sign the Title Deeds. You will be assisted in making sure that all paperwork is correct and your lawyer will also be part of this process. After signing, the remaining amount to pay for the property will be given to the seller in cash or by bankers’ draft an you will receive the keys for your property.
Possible Additional Fees
Depending on whether you are buying a new property or a resale, you may be looking at additional fees between 8,5% and 10% of the property price.
Resale Property Transfer Tax
New Property IGIC
Land registry charges
Notary Fees
Lawyers Fees
Translator Fees (If not a Spanish speaker)
Plus valia tax (similar to added value tax)
How to start the property buying process
Find out how much budget you have available and make sure to budget for an additional 10% of the property price on top to account for additional costs and to avoid disappointments.
Use our property portal search to find a property that matches your requirements, or contact us directly to receive more options. We partner with many different agencies to bring you a wide selection of properties in The Canary Islands.
We can quickly set up a viewing trip with the agent in question as we are in direct contact with them. If you like, they will pick you up and show you the property on a date and time that suits you.
FIND YOUR DREAM PROPERTY IN SPAIN
Disclaimer: Your Property Abroad cannot be held responsible for any errors or outdated information in this article. Always seek professional legal advice before deciding to buy a property.
