Buying Guide Details

Buying Property in Lanzarote

Where to buy property in Lanzarote

A desolate, volcanic island, Lanzarote’s stark beauty has not generally been spoilt by excessive property development, due to campaigns to preserve its natural beauty. It is no stranger to tourism, however – it has some marvellous beach resorts (for example, Playa Blanca and Puerto del Carmen) with a great choice of existing and new-build apartments and villas for sale in Lanzarote.

There’s just the one golf course on the island at present, with several others in development or planned for the future. The existing course in Costa Teguise has been there for nearly 30 years, its lush greens and fairways providing a dramatic contrast to the surrounding volcanic landscape.

Watersports fans will head for the marina at Playa Blanca for some spectacular yachts and waterside homes, from where fans of sailing, diving and big game fishing can weight anchor. It’s also just a short distance from excellent beaches at Papagayo and has a sports centre on site.

As ever, by looking inland (Teguise and Yaiza, for instance) home buyers benefit from lower prices and an altogether different pace of life from the popular tourist areas.

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The Process of Buying Property in Lanzarote

Anyone wishing to buy (or sell) a property in Lanzarote 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 in Lanzarote 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 in Lanzarote
Taxes payable depend on whether the property in Lanzarote 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 in Lanzarote, 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 in Lanzarote 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 flights to Lanzarote (Arrecife) direct from many UK airports all year.

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