The majority of our clients are looking to buy a property in the Canary Islands. But what does the actual buying process look like in Spain, and what should you take into consideration when buying a property in the Canary Islands? Here's what you need to know:
Deciding where to Buy a Property
Whether you have been visiting the same area in the Canary Islands for years, or fell in love after one visit, it is good to narrow down your preferred property locations. It will save you a lot of time and several viewing trips if you already have an idea of the area you prefer.
In Lanzarote, some of the most popular areas include Puerto del Carmen, Playa Blanca and Matagorda. For Tenerife, Los Cristianos, Puerto de la Cruz and Playa de las Americas are in high demand. Knowing which area you prefer and why you do so will help in narrowing down your search. Logically, some of these popular areas may be more expensive than you initially thought. Ask your property search specialist to find out what type of area and property is realistic for your budget.
Financing and Next Steps
Getting a mortgage in Spain usually involves an easier process than most other countries. You will need to show the most relevant paperwork and will receive an answer shortly after. Most banks that our agents deal with speak English and handle excellent rates and conditions.
When you sign the purchase contract, both the seller and you commit to the conditions that are stated in the contract. When you sign the document another instalment is paid. This is usually around 10% of the purchase price.
You will also need to pay a deposit to make a reservation on the property until the contract is signed. Your lawyer will make sure you are safe to go ahead with the purchase at this stage.
Another essential part of the buying process in Spain is to get an N.I.E (Non-resident identification) number. Luckily this is very easy to arrange, and many agents will be able to help you with this.
After this, a Notary will arrange a date for you to sign the Title Deeds. You will be assisted in making sure that all paperwork is correct and your lawyer will also be part of this process. After signing, the remaining amount to pay for the property will be given to the seller in cash or by bankers' draft an you will receive the keys for your property.
Possible Additional Fees
Depending on whether you are buying a new property or a resale, you may be looking at additional fees between 8,5% and 12% of the property price.
- Resale Property Transfer Tax
- New Property IGIC
- Land registry charges
- Notary Fees
- Lawyers Fees
- Translator Fees (If not a Spanish speaker)
- Plus valia tax (similar to added value tax)
How to start the property buying process
- Register as an interested buyer for the Canary Islands through our property enquiry form.
- After a short call to find out your exact property wishes and area of interest, we will send you suitable options straight to your email.
- If you like any of the options, we can set up a viewing trip with the agent in question. If you like, they will pick you up and show you the property on a date and time that suits you.
- You can ask the agent any questions you may have about the buying process in the specific area. If you need a lawyer, a mortgage or anything else, they can advice and recommend the best ones on the island.
Disclaimer: Your Property Abroad cannot be held responsible for any errors or outdated information in this article. Always seek professional legal advice before deciding to buy a property in the Canary Islands.