Tenerife Property Buyers Guide
There are fewer better things in life than waking up each morning to azure blue of the literally sun-drenched Atlantic Ocean.
In fact, for many people, Tenerife is the epitome of a modern day paradise.
Even better, with Europe being just a few hours flying time from Tenerife South Airport, relocating to the island doesn't mean ever having to say a single final farewell at all.
In fact, if you really wanted, you could hop skip and jump back to Europe every second weekend.
However, just like when buying property anywhere overseas, new Tenerife home buyers do need to exercise a certain level of caution when purchasing a property.
In like manner, it's imperative for every buyer to familiarize themselves with the ins and outs of buying property in the first place.
How to Find a Property
Just like in the rest of Europe, most property in Tenerife is bought and sold through real estate agents.
Moreover, whether you are making a first or second-time property purchase, it is best to go this route yourself.
This way you can be assured of everything from the authenticity of a property being sold to your being able to rely on comprehensive legal and paperwork support.
What Documentation do I need in order to buy a property in Tenerife?
If you are a non-resident in Spain the Spanish government requires you to obtain an N.I.E.
(Numero de Identificacion de Extranjero), a Fiscal Identification number.
This is obligatory in order to purchase a property, contract for utilities etc.
The only formal documentation which you will require in order to buy property in Tenerife is an NIE number, along with your Passport / Identification document.
This can be applied for in person at any nearby National police station.
We can assist in your application.
How to make a Purchase
When you have found the property you wish to buy it is usual to pay a reservation fee.
In order to withdraw a property from the open market you will be asked to pay an initial holding deposit, which can vary between 3,000 - 6,000 Euros.
A contract will be written up describing the conditions and terms of the property purchase.
The contract will also set a completion date.
Usually, all standard purchases require at least a 10% down payment.
It will also verify that the individual selling the property is permitted to do so.
The contract guarantees the property will be sold free from all debts.
It also determines who is responsible for taxes and fees associated with the sale.
Total costs associated with purchasing property in Tenerife vary in depending on whether or not a property is new or being resold.
In like regard, costs will also be affected by whether or not you decide to pay upfront or purchase a property using a mortgage.
A further matter to consider concerns the fact that in Spain, any outstanding debts on a property will become yours after purchase.
This being the case, never complete a sale until you are certain that a property is free of debt, we can carry out the necessary searches and ensure that your property is debt free.
Lastly, it is also worth remembering that although contracts will (usually) always be translated into English, English language documents carry no real weight themselves in Spanish legal proceedings.
Only Spanish language versions of any documents will be legally binding; this is where our multi lingual team can assist.
Completing a Sale
A property sale itself in Tenerife will usually take between 4 and 6 weeks to finalize.
The public Escritura (Title Deed) is signed in the presence of a Notary.
The Notary who will check and confirm all necessary transaction details.
Spanish law dictates that the buyers and the sellers or their nominated representatives, are present.
If you are unable to personally attend, you will be required to give a power of attorney to the person (friend, Estate Agent, Lawyer etc) representing you.
During this meeting, you will be required to provide Spanish bankers drafts which amount to the outstanding sale price on a property.
When you purchase a Property in Tenerife you will need to allow for circa 8-10% of the purchase Price to cover purchase costs, taxes and Notary fees and registration.
Included in this amount, 6.5% of a resold property price will be required to be paid as transmission tax.
On a New Development buyers will be required to pay 7% I.G.I.C as the equivalent of VAT.
Local Annual Taxes
Whilst you are the owner of a property in Tenerife you will be liable to pay local rates, or I.B.I Impuesto sobre Bienes Inmuebles, this is paid by the owner of a property once a year between the 1st of May and 15th July (dates may vary between councils).
The owner is responsible even if he does not receive a rate demand; it is the owner's responsibility to find out the exact amount of the tax and to pay it between the dates stated above.
Failure to do so could make you liable for a 20% penalty and interest.
In order to avoid this penalty it would be wise to set up a direct debit.
This means filling out a form, authorising that the demands for the tax are made directly to your bank, so you will never be in arrears.
The amount of IBI tax you pay will vary from council to council and it is dependent on the size of the property.
For a one bedroom apartment in a tourist area you would probably expect to pay around 250 Euros per annum.
If you are thinking of buying or selling a property in Tenerife we welcome you to view our selection of Tenerife property on this website.
Please visit our office at Parque Santiago 6 Commercial Center Office No13, or email us directly at firstname.lastname@example.org