Buying Property in Tenerife

Buying property in Tenerife

If you are thinking of buying property in Tenerife, then Property Solutions Tenerife is here to assist you. Contact us today for a professional service that is designed to match your needs and make your property purchase go smoothly.

What to expect

Once you have found the property you wish to buy, and your offer has been accepted, you could be asked to leave a small reservation deposit to take the property off the market. It is highly recommended at this point to appoint a lawyer who will order a Nota Simple, making the checks on the property to make sure it is free of debt and all is in the correct order.

Your lawyer will then draw up a purchase contract to be signed by yourself and the seller of the property. At this point, you will be required to pay a 10% deposit of the purchase price.

A date will be determined when you need to send the rest of the funds to your lawyer.

On the completion date, you, the seller, the agent and the lawyer will go to the Notary Public office (Notaria) to sign and complete the sale.

FAQ

What happens if I change my mind or if the seller decides not to sell?

You will lose your 10% deposit if you change your mind.
If the seller pulls out, you will get your 10% deposit back, plus you will be compensated the same amount again.
What additional costs and taxes do I need to pay? And how do I pay them?

Approximately 10% of the purchase price will cover additional costs and taxes.
6.5% of Property transfer tax goes to the Government
Notary approx. 900 euros
Registry approx. 400 euros
Lawyer approx. 1700 euros
Your lawyer will instruct you when to make these payments.
Is there anything else I need?

Yes, an NIE Number, which is a foreigner’s identification number. This is applied at the police station, and your lawyer or agent will be able to help with this.
And a Spanish bank account to transfer the money to make the transfer and set up any direct debits for bills, i.e. water, electricity, community etc. Again your lawyer or agent can help with this. It’s advisable to look into a bank near your property.

Once I own a property in Tenerife, what bills will I have and how will I pay them?

Water approx. 25 euros a month ( based on a 1-bedroom apartment)
Electric approx. 50 euros a month ( based on a 1-bedroom apartment)
Community varies from 30 to 300 euros a month depending on the complex and facilities available, i.e. if you purchase a property on a complex with lifts, swimming pools and reception etc. you will pay more.
Rubbish (basura) 38 euros twice a year
IBI tax is 200 to 600 euros a year, depending on the type of property you own
Insurance approx. 40 euros a month
When visiting Tenerife, it is advisable to pay money into your bank account to cover these bills and leave some extra. Also, going to your bank when you are here is extremely important to keep your identification and contact details up to date. Many clients do not think of this and then can have issues accessing their account from the UK, with bills not being paid on time.
What if I cannot be there on the day of the signing?

Before signing, you can appoint someone to sign on your behalf by giving them power of attorney, usually your lawyer
What is the best way to send my money to the Lawyer?

You will need to ask your bank if there are any charges, both in UK and Tenerife, Hefty transfer costs can occur when sending and receiving funds. I recommend Money transfer companies.
Can I buy in Sterling?

Yes, you can
If I purchase a Property in sterling, can I lock in an exchange rate so it doesn't cost me more?

You can yes; however it may not work in your favour, depending timescale of the purchase and what the exchange rate does.