Tenerife Property Buyers Guide

You’ve found your dream home in the sun, now what?

Our multi-lingual team at Tenerife Property Links can take the stress out of the situation for you, by guiding you through every stage of the process.

The first step involves obtaining a Spanish Identification number or, N.I.E. We can arrange this for you, saving you from having to queue at the Police Station from 6:30 and instead allowing you to attend yourself at a more reasonable hour.

We will provide details of the outgoing costs payable every year to maintain the property, namely the Annual Real Estate Tax (IBI), the community fees and charges for rubbish collection.

Generally speaking, a 10% deposit starts the ball rolling, and ensures the property is taken off the market. We work closely with local banks and mortgage brokers if you require finance, and if so the lending institution will carry out all relevant searches to ensure the property is free of debt. If you do not require finance however, we will ensure these important searches are carried out. This deposit is not normally refundable should you default, however, conversely, if the vendor fails to perform his obligations, you will be entitled to rescind the contract and claim damages.

Finally, on the day fixed for completion we will accompany you to the Notary Public, who presides over the transaction. At this time you make the financial payment to the vendor who will simultaneously pass over possession of the property to you. The Notary then faxes details of the title deed to the local land registry to inform them of the new ownership. Relevant taxes are paid (see below) and the original title deed is submitted to the land registry for registration of your title.

We can then arrange for the transfer to your name of utilities and services such as water and electricity and organize standing orders to this effect.

Fees and Taxes

As a rule of thumb, 10% of the purchase price should cover everything, the majority of which is taken up by a 6.5% Transfer Tax (ITP). The notary charges on a fixed scale, which is on average around the €500 mark, and the land registry charges 40% of this amount more or less.

Plus valia is a tax levied by the local town hall on the increase of the value of the land on which the property is built, from the date that the last owner purchased it. By law the vendor is obliged to pay this tax.