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A Buying property in Tenerife

Venli Estate Agents - A buyers guide

Buying a property in a Tenerife, Spain or any foreign country can be very frustrating due to the different languages, that is why Venli are here to insure then when you purchase a property here in Tenerife we deal with all the legal requirements.

There are various procedures, searches, etc that have to be done to a property before a purchase can be made. Here is a brief guide on the procedures that we do for our clients:

Firstly the property has to be checked that it is free of any debts with the land registry.
Secondly a Private Sales Agreement is signed between both parties where a normal 10% deposit is given and dates are set for the completion of the sale and signing the deeds in at the Notary.
At the Notary, further searches are done to insure that the property is registered correctly and that it is free of any debts or complications.

Upon signing the deeds Venli then take care of applying for the new owners a N.I.E. Number (Foreign I.D. No.), as this is necessary for the registry of the property. We also deal with changing all the appropriate bills (Community charges, Electricity, Water, Rates, etc) into the new owners names, we can even set up direct debits so while you are not here using your property you don’t have to worry about any bills not getting paid.

In addition to the cost of your new property there is an approximate 10% to be set aside for Taxes and costs. The breakdown of these taxes are as follows:

  • 5% I.G.I.C. (VAT) plus 0.5% stamp duty when purchasing a new property
  • 6% ITP tax for a resale property
  • Notary Fees
  • Land registry costs
  • Plus Valía (Land gains tax)

Yearly costs

  • If you are a non resident and own property in Tenerife you are liable to pay a yearly Wealth tax this can be calculated for you and paid for you on a yearly basis.
  • All property owners have to pay I.B.I. (Rates) this is a yearly payment as is calculated according to the value of your property.
  • Rubbish. This is paid every 6 months.
  • Insurance. If you have a mortgage to buy your property you are obliged by the bank to have a house insurance. This can vary between €100-€400 depending on the value of the property and it’s contents.

If you would like any additional information regarding buying a property in Tenerife, please send your questions to our Sales Department.