Buying Guide Details

Buying Property in Gran Canaria

Where to buy property in Gran Canaria

The property market on Gran Canaria is diverse – home buyers have the choice of many new-build and resale properties of all types. Inland (for example, Mogan), properties may cost some 30% to 40% less than a coastal equivalent and the villages of the mountainous hinterland are a world away from the crowded beach resorts (such as Maspalomas and Playa del Ingles) that generally accommodate the island’s priciest property.

Gran Canaria is the second most populated island in the Canaries and, like some of its island neighbours, is often called a ‘continent in miniature’ due to its varied geography and climate. Its west coast is reputedly home to the ‘world’s best climate’, sea breezes moderating the warmth of the sun.

Buyers of property on Gran Canaria with a penchant for the sea or for golf have many options. Sailing is big news in Gran Canaria, with several marinas, mainly in the south. Puerto Rico is the largest of them and a popular base for divers and anglers. There are golf courses in the north, near to the capital Las Palmas, and around some of the resorts in the south.

Rural tourism, hiking and climbing in the quieter and more scenic corners of the island contrast with the 24-hour partying of some of the big resorts at high season: there is good potential for rental income wherever you decide to buy a property on Gran Canaria.

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The Process of Buying Property on Gran Canaria

Anyone wishing to buy (or sell) a property on Gran Canaria must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the buyer has received the NIE number, the buyer’s lawyers can make an offer on their behalf. When a price has been agreed, it is recommended that both parties sign a preliminary agreement which outlines details such as the completion date
A deposit of 10% is the normal amount placed to secure the deal. After this, if the buyer pulls out they lose the full deposit but, should the seller decide not to go ahead, he/she must return double the amount of the deposit – i.e. 20% – to the buyer
If a property on Gran Canaria is purchased off-plan, it is usual for payments to be broken into stages, the balance being paid when construction finishes
On completion, when all the necessary checks have been carried out, both parties sign the escritura (title deeds) in the presence of a notary. The buyer then pays the balance, plus all other fees and taxes. Copies of the deeds are sent to the Land Registry and the tax office.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

Taxes and fees usually amount to around 10% of the total purchase price of the property
Taxes payable depend on whether the property on Gran Canaria being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build property on Gran Canaria, VAT (IVA) of 7% is payable in addition to 1% stamp duty
On top of this there is also plusvalia (capital gains tax), which is set by the local authorities and depends on the area concerned and the amount of profit being made on the sale. This is usually paid by the seller
If the buyer is purchasing land or commercial property rather than residential, VAT is 16% as opposed to 7%. Stamp duty remains the same
Most Spanish lawyers charge around 1% of the final purchase price, and notary fees are around 0.5%
Agents’ fees can vary anywhere between 2% and 15% – so be careful not to be ripped off

Getting there

There are direct flights to Las Palmas from many UK airports year round.

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