There are many benefits of living in Tenerife, which is why a lot of people relocate there from the United Kingdom and many other cold Northern European countries.
One of the main reasons people flock to Tenerife is the weather, but there is much more to Tenerife than just the weather. There are gorgeous mountains, pine forests, and the cost of living is considerably lower. Locals and tourists even named the archipelago which consists of 7 main islands, the “Fortunate Islands."
More and more people are leaving their homes for the sub-tropical climate here. Thanks to the increase in confidence and wealth, and the aspirations and goals of 40, 50 and 60 something year old's, property in Tenerife is in high demand. This is especially the case in the areas of the south like Los Cristianos and Las Americas.
However, the way property is transacted in Spain and Spain's islands are quite different. This is why it's essential to do your research well in advance. You also want to make sure you work alongside professionals who are impartial and can help you with buying a property.
How Is Property Sold
Most properties in Tenerife are sold via estate agents. When you find a property you like or you see being advertised, then you'll want to contact the estate agent that listed it. If you want to purchase the property, then contact the estate agent and put in an offer.
Property owners in Tenerife typically know how much their property is worth, but you can ask the estate agent to negotiate the price. A lot of properties are sold already furnished. However, you do need to know there is no formal system for surveying, so you need to inspect the property and come to your own conclusion as to what the condition of it is.
Property Purchasing Procedure
If you put in an offer and it's accepted, then you'll pay a deposit, which is usually ten percent. If you reach this point, then you should hire a lawyer who will work with your interests in mind. As for how much you'll have to pay the lawyer, it depends on the property's value, how much work is involved, and the attorney you decided to use. Generally speaking, you can expect to pay a lawyer around €2,000.
What Happens After I Pay A Deposit
After paying the deposit, you'll want to apply for a nota simple, which your lawyer will arrange. It is a document that states whether or not the property has things attached to it, such as a mortgage, charges or embargos to name a few. If everything checks out, a private contract will be drawn up by the lawyer and you'll need to sign it and so will the seller.
The contract will likely be drawn up in Spanish, but the best lawyers will translate the language so you can read it. If you're not sure what you are signing, then do not sign anything. Be aware that if you sign the contract and the transaction doesn't go through, then you'll risk not getting your deposit back.
The transaction should be completed within 4-6 weeks and the local Notary will look at everything and they will confirm the transaction's terms and condition. Your lawyer and the seller's lawyer or the representatives of the two will need to be present. You'll be asked for a banker's draft which will total up to the price of the property.
If there's a mortgage attached to the property, then you'll need to provide a check to the seller's bank as this will be used to pay the rest of the mortgage.
If the seller of the property isn't a resident, then you'll need to pay the tax authorities three percent of the price. Other than that, everything is paid via banker's draft to the vendor.
It is extremely important to be careful when transferring money within Spain. This is because banks can charge a lot of money. It is actually very common for charges to amount to thousands.
Are There Additional Costs
Your taxes need to be covered. Not only that, but costs associated from the transaction will need to be paid. As for what these costs are, they include:
- Lawyer- About €1,500-€2,500
- Notary- You'll need around €2,000 for notary and registration fees
- Transmission Tax- The tax depends on what the transaction's value is
If you’re going to buy a property for € 200,000, then your lawyer will likely want 8% of that and you'll need to pay another 6.5%.
Before you do anything, always make sure you have a good idea of what fees you'll have to pay.
After all of the above is completed, you'll finally become the owner of a property in Tenerife. Best of all, the council tax isn't that much. In fact, it only costs around a few hundred Euros per year. As for your refuse collection, don't worry because it is collected regularly, all for around one hundred Euros.
You might want to buy property in a community, such as an apartment. If you do this, then be aware you'll have to pay various fees. These fees go towards things like maintaining the gardens, taking care of the pool and maintaining lifts. Those are a few examples of what your fees go towards.
Is There Anything Else You Should Know?
You should have a will drawn up. You’ll be making numerous visits with lawyers and you'll visit the Notary office at least once. While you are at the office, you should have a will drawn up or signed. Remember, anything can happen; it’s is a good idea to have a will created around the same time.
Also, you'll need an NIE number, which is easy to get and you need to do it before the transaction is completed. Your lawyer will tell you when you should do it. Other than that, the only thing left to do at this point is to learn a little bit of Spanish, relax, and enjoy all of what Tenerife has to offer, including top notch attractions and gorgeous weather.
Now you know more about buying a property in Tenerife.If you want to live somewhere amazing, then start looking at homes in the area. Just make sure you keep the above information in mind when you start looking around for property on the island.