BUYING A PROPERTY IN
TENERIFE
BUYING A PROPERTY IN
TENERIFE
Important aspects
It is advisable to determine a price range in advance and to think about how you want to finance the purchase. Apart from buying with your own capital, it is often possible to take out a mortgage with a Spanish bank for up to 60% of the purchase price or estimated value of the property.
Once you have decided on a property, a preliminary contract (Arras penitenciales) is usually signed. This contains the conditions of purchase, including the purchase price, the down payment by the buyer (usually 10%) and the time frame (usually 60-90 days) for signing with the notary. It is assumed that the buyer can withdraw from the preliminary contract at any time, but then loses his deposit. Likewise, the seller can withdraw, but then usually has to pay back twice the deposit.
At this stage we recommend that you get a lawyer or “gestoria” to check the property, the contracts and to give you an estimate cost of the purchase. The Spanish NIE number is also applied for at the police office, if you do not already have it, as you will need it for the notary appointment.
Normally, approx. 60-90 days after both parties have signed the preliminary contract, the title deed is signed at the notary’s office. Usually, your lawyer or “Gestor” and your real estate consultant will accompany you to this appointment. After signing the title deed at the notary’s office, the various payments, such as taxes, notary’s bill and costs of the land registry, have to be made.
6.5% Transfer tax – Model 600
Notary fees
Costs of the land registry
Costs of changing utility contracts, such as water and electricity to the name of the new owner
Costs of the lawyer or “gestoria”
Total: aprox. 8-9% of the purchase price
7% I.G.I.C.
Notary fees
Costs of the land registry
Fees for water and electricity contracts (initial contract)
Costs of the lawyer or “Gestoria”
