Buying Tenerife Property – A Quick Overview
You will find there are many different rules to adhere to and taxes to be paid when buying a property in Spain. And to make it even more complicated, each province or state has different rules and regulations.
So buying a property in Marbella will have a different set of rules and tax obligations than say buying a property in Tenerife. We already covered the rules on buying a property on the Costa del Sol, so today we are looking at a different region. Tenerife.
Below is a quick Q and A of the basic steps to take when buying a property in Tenerife.
Q. I have picked a property, what happens now?
- A. You need to put a 10 percent deposit down to write up a sales agreement. The agreement states the terms and conditions of the property purchase. You need to obtain an NIE number for all financial transactions as well as a Spanish bank account.
Q. Who does the conveyance?
- A. Lawyers oversee the transaction. They make sure that no inherited debts exist, and they confirm any water, electricity or community fees have been paid. This is important because if the debts are not picked up in this check, the new owner will be liable.
Q. What about the Title Deed and Registry?
- A. Before the Title Deed is signed, the Notary Public has the job as per Spanish law to get a valid land registry certificate. This certificate declares that there are no encumbrances, mortgages, or debts associated with the property in any manner. It assures you that you are getting clean purchase.
Q. Where am I legally during the sale?
- A. You should get your own independent professional advice regarding investments to be sure that the property purchase is right for you before you conclude the sale.
Buying Tenerife property has to be in compliance with all Spanish laws and all legal details regarding the transaction are handled by the relevant parties involved. Agents can help you make sure all bank standing orders are properly done for community fees, water, and electricity.
If you require the assistance of a lawyer, make sure you find one who is trustworthy and has no affiliation with the agent or person you purchased the property from.
Q. Are agents qualified to give legal advice?
- A. No. Agents are not qualified to offer legal advice. What they can do is refer you to legal professionals using their network of experts who can help their clients deal with all the legal aspects of their purchase.
It’s recommended that you find an independent lawyer of your own to maintain impartiality.
Q. What additional expenses can I expect to pay when the purchase is complete?
- A. Once the Purchaser, the Vendor, and the Notary finish signing the Title Deed or the Escritura, you must pay about 10 percent of the property’s value as it is written on the Deed or Escritura.
This law lets any property that is bought from a builder or is purchased through a resale to be done and includes all Notary fees, the Valia, lawyers’ fees, and transfer fees.
Q. Are there hidden charges?
- A. There are no hidden charges but the costs of running the property. These include electric bills, community charges, and water fees. These also include a nominal annual property tax. Besides this, you must pay an annual fee to the local tax office. This is to declare income so that you are taxed appropriately.
Q. What are community charges?
- A. The laws state that developers must set up a community that runs on communal services.
The committee of the community determine the charges which are levied proportionately by them according to a property’s size in the complex. This includes any garden, pool and lift maintenance charges.
Q. Must I live in Spain to buy property in Tenerife?
- A. No. But, if you want to live permanently in Tenerife, you must obtain residency.
This is a simple process which can be done for you by agents or people offering such services if you need help.
The above Q and A from Villas and Apartments Tenerife gives a general idea of the process involved when purchasing property in Tenerife and I hope you find it useful.
If you are looking to buy a property more in the region of the Costa del Sol, then keep reading our blog as we will write about many different things you need to think about when buying a property here. For example, what is an energy certificate and why do I need one?