Buying

When considering the purchase of real estate, many thoughts will pass by. How does it work on the island? What do I need? What should I do? Will it be legal? Where do I start with?

A good broker or agent must be able to reassure and explain all steps of the procedure, what you need and what services he provides. And this is where Tenerife Property Network excels from other brokers!

This text aims to give you a first outline of the purchasing process and how we work with Tenerife Property Network to ensure that each transaction is conducted in a professional and proper manner.

We will contact you by mail, skype, phone or in person to have a conversation so that we can form a clear picture of who you are and especially what you do like in relation to real estate so we can adequately work for you.

We’ll try our best to suit as good as possible to your needs and consult the properties we have in our portfolio, the properties of our partners and colleagues and also our contacts with local owners who choose not to advertise their property. In this way we can guarantee you a much higher success rate in finding the property you are looking for!

Now, why would you choose to work with us? Very simple, we deliver a total solution and total support during and after your purchase! We explain step by step all the procedures and guide you along with an accountant and / or lawyer during the entire transaction. This way of working ensures a smooth processing of transfer.

Our reputation is our greatest asset!

COSTS AND PROCEDURES

When you are considering to acquire a property in Tenerife, you need to consider what the main purpose of your purchase will be:

  • Investment
  • As a holidayhome – second stay
  • Permanent home

Understanding this distinction is crucial because it will have an impact on the geographical location, the price, the amenities and more.

Once we found a suitable property for you and you have decided to purchase, there are still some things that need to be regulated. Before you can proceed with the purchase of real estate on Tenerife, you must be in possession of a:

  • NIE (Número de Identificación Extranjero)
  • Bank account from a Spanish bank

The NIE is a personal identification number that every foreigner must possess in order to be able to purchase a property in Spain. We go to the Policía Nacional, fill in a number of documents, go to the bank, pay a tax and return to the Police and the same day you are in possession of the required document.

The next step is to open a bank account at a Spanish bank. This is required, amongst other things, to be able to transfer the funds that you need to buy your house. You are free to do so in any bank of your choice. We will accompany you for both the NIE and to open the bank account  to be sure that the procedure is done correctly and that everything is in order.

A big difference between the buying procedure in the UK or USA and in Tenerife is that the notary doesn’t do some essential research about the said property. For this you must rely on your broker, a gestor or a Lawyer.

At Tenerife Property Network we prefer to leave this to a Lawyer or Gestor. This way you can be sure that everything will run smoothly and that in the future there are no unpleasant surprises!

Once you have your NIE, your Spanish bank account is opened, the selling agreement signed between both parties and you made a deposit of 10%, the Gestor or Lawyer will check and prepare some things before we go to the Notary:

  • Is the seller indeed the legal owner
  • that no debt rely anymore on the property
  • If applicable: that all costs of the “comunidad” are paid

After that we’ll make an appointment with a notary (usually between one and three months later) to sign the final deed, transfer of the payment and the delivery of the keys.

After the Act there are still some formalities to be fulfilled but the Gestor / Lawyer will do this further for you together with us so that you do not need to do anything and right away you can enjoy your new property!

The formalities include:

  • Payment of the 6.5% tax on the purchase of real estate
  • Register you as the owner in the municipality, the government and the land register
  • Arranging the transfer of the tax on garbage
  • Transfer of water, electricity and comunidad in your name.

Meanwhile, you will have understood that just as in the UK and in the USA there are also in Tenerife additional costs when buying property in addition to the actual purchase price. The advantage is that these costs are significantly lower in Tenerife! As a general rule, you should take into account an additional cost of 10% on the purchase price of your property, including ALL bills and costs.

We hope you have obtained a clear overview of the procedure for the purchase of real estate on the beautiful island of Tenerife. If you have any questions, do not hesitate to contact us!

We hope to welcome you soon and remember; your personal realtor in Tenerife is Tenerife Property Network!