BUYING GUIDE - TENERIFE VILLAS FOR SALE
Buying Property in Tenerife
Buying property in Tenerife is very similar to buying property in the UK, however, it is advisable to seek independent advice from a reputable lawyer and not rely solely on the advice of an estate agent, after all you wouldn’t buy property in the UK without using a solicitor, nor should you in Tenerife (be wary of any agent who tells you not to use a lawyer!). Buying direct from the owner will save you money as the agents generally add around 5% on to the value of the property for their commission.
First things first, you will need to apply for an NIE number when buying property in Tenerife, so that you are registered with the local tax authorities and you can open a Spanish bank account. This is a simple procedure of going to the Police Station in Playa de las Americas for an application form and returning with the appropriate documents. Your estate agent or lawyer may be able to help you with this for a small fee.
It is not a requirement of Spanish law that you have a structural survey done on the property you want to buy, so you will have to use your own judgment as to the condition of the property. Also it is not uncommon for property to be sold furnished.
Most properties will be for sale with more than one agent, so it is worth shopping around as you may find the same property advertised at different prices. Viewing property is by appointment with the owner and the agents representative will accompany you, as with the UK, you can make an offer to the estate agent in Tenerife, who will then discuss the offer with the owner, once the offer has been accepted you will be required to pay a deposit of around 10% to either your agent, your lawyer, or the sellers lawyer. On payment of the deposit, the lawyer will apply for a ‘Nota Simple’ from the local town hall. This document tells the lawyer if there are any debts against the property in Tenerife, ie a mortgage or embargos, (in Spain, any debts outstanding will become yours once you take possession of the property). The next step is for the lawyer to draw up a ‘Compraventa’ (buying and selling contract), which must be signed by you and the seller as soon as possible. If your Spanish isn’t fluent, a good lawyer will provide an English translation (don’t sign, if you are in any doubt as failure to complete the purchase will result in you loosing your deposit).
The property buying procedure takes around 6 weeks. It is required by law that you or your representative and the seller attend ‘Notary’. You will be asked to present a number of bankers draft’s to cover the agreed purchase price. If the seller has a mortgage or any other debts, you will be asked to present bankers draft’s made out to the appropriate companies / authorities, in the event that your seller is non resident, 3% of the agreed price must be paid by you to the tax office. Any remaining monies are to be paid direct to the seller.
Additional costs incurred when buying property in Tenerife are as follows:
(All figures are approximate)
1200€ Solicitors fees
6.5% Transmission tax (resale properties)
1250€ Notary and registration fees
1000€ Plus Valia (this tax is payable to the town hall
As a general rule, your lawyer will ask for around 10% of the purchase price to cover these costs, however, ask for a list of charges, once all the transactions has been completed.
We aim to provide accurate and helpful information, however we cannot accept responsibility for any inaccuracies contained within our website. Always take legal advice when buying or selling property.