Buying Guide Details

Buying Property in Tenerife

Where to buy property in Tenerife

The largest and most populous of the Canary Islands is also generally the most expensive for potential property buyers. Dominated by the dormant volcano Mount Teide and its National Park, Tenerife has popular resorts in its arid south (for example, Playa de las Americas and Los Cristianos) contrasting with colonial towns and scenic plazas in its more fertile and verdant north and west (places such as Icod de los Viños and Tacoronte).

Buying property outside the obvious tourist areas is the key to getting the most property for your money – a two-bedroom property in a resort may cost the same as a whole renovated finca (farmhouse) in a rural location. However, the continuing popularity of the beach resorts provides more obvious rental opportunities as well as proximity to more amenities. Much depends on what the property buyer is looking to get from a property in Tenerife.

Tenerife’s oldest golf course, Golf Amarilla, is situated inland from the southern Costa del Silencio (‘Coast of Silence’, though it is now quite developed and not far from the airport!) along with the exclusive Golf del Sur, a 27-hole course which accommodates some of the island’s priciest properties.

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The Process of Buying Property in Tenerife

Anyone wishing to buy (or sell) a property in Tenerife must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the property buyer has received the NIE number, the property 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 property 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 buying property in Tenerife 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 Tenerife
Taxes payable depend on whether the property in Tenerife being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build properties, 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 property buyer is purchasing land or commercial property in Tenerife rather than residential property in Tenerife, 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 charter and scheduled flights to Tenerife South (Reina Sofia) and Tenerife North (Los Rodeos) airports from all over the UK year round.

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