The Canary Islands and its largest island Tenerife has been an attractive destination for those who would like to buy their second home – property in Tenerife – or just move to the “eternal spring” area to live.
Our target is to provide you with the full support of choosing and buying process of a property in Tenerife. We are part of the Wady Properties team that has been operating in the region for almost 20 years and have gained respect there.
Here are a few bullet points we have prepared for your knowledge:
- process of buying a property in Tenerife starts with a 10% deposit to block it. Can be paid in two steps – a smaller amount, around 3000 EUR, on the moment of decision and the rest from 10% – within one week;
- the rest of a 90% – as agreed in the contract;
- additional expenses & taxes involved in the purchase process:
- PURCHASE TAX: 8.5% OVER DECLARED VALUE IN THE DEED (Includes Notary fees, Purchase tax, Solicitors of the Notary and Registration of the Property) in Re-sales OR
- for Brand New Properties: 7.5%
- a tax called PLUSVALIA (Capital Gain tax) Paid one month after the purchase, depending on the type of property and age. These taxes are calculated by the tax office and there is no fixed %.
- EUR 900* for administrative charges and legal representation (incl.all after deed procedure and presentations at Hacienda and registration office (two months job) until the deed is complete, now required by law for non-residents). Bank re-address and change into the owner´s name of a community charges, all services, and IBI (annual tax) at Town Hall).
- for non-residents of Spain, there are few more steps to do before buying property on the Canary Islands where some extra expenses might occur if you don’t speak Spanish language*:
- N.I.E.N. registration (issued in the police station);
- opening of a non-resident bank account in EUR in Spain
- legal representation in Spain.
- In the next following years, a new owner will have to pay IBI (property tax) that will depend on property valuation, type, size, and location;
- after purchase one has to re-address and change of name for all service (water and electricity, trash collection, community) charges.
Any person is able to buy in Tenerife. Non-residents are able to proceed guided by a legal representative, which could be a lawyer, solicitor or an authorized Estate Agent.
Please, send us your criteria for a property in Tenerife you are looking for. Give us more details (size, rooms, bedrooms, facilities) and we will come back as soon as we are able to select offers for you.