The process of buying real estate in Tenerife

The process of buying a property in Tenerife is carried out in the following steps:

Agreement and Deposit You have chosen a property that you like. Then we, as a real estate agency and your assistant in the buying process, verify the legal cleanliness of the property. We check if the property has encumbrances, debts, and ensure that the seller is the actual owner of the property or has a notarial power of attorney from the owner to sell.

We sign a deposit agreement with you and pay a deposit, usually amounting to 10% of the property's value. The deposit is generally transferred to the seller's bank account. If you are a foreigner in Spain, we issue a Foreigner Identification Number (NIE) for you. This is a mandatory document for opening a bank account and registering real estate. Document submission and obtaining the NIE are done on the same day. Then we open an account with a local bank.

The following documents are required to open an account with a Spanish bank:– Passport– Previous year's income tax declaration, which must be translated into Spanish.– The employment contract or work agreement must also be translated into Spanish with the seal of the translation agency.

Transfer of the Deposit to the Seller According to the terms of the agreement, you transfer a portion of the cost of the property to the seller, reserving the property for you. The amount is negotiated when signing the Deposit Agreement (or reservation contract). We discuss the terms of registering the purchase and sale of the property with you when paying the deposit. Typically, you have 1 to 2 months to transfer the necessary amount for the purchase to your account in a Spanish bank or submit documents for a mortgage.

Signing a Purchase/Sale Contract, Payment To sign the purchase/sale document, you must be physically present in Tenerife, or if this is not possible, we can close the deal on your behalf through a power of attorney. In the presence of a notary, the deed of sale is signed, keys are handed over, and the final settlement of the transaction takes place. Payment for the acquired property is usually made by a check issued by your bank in Tenerife.

After signing the deed of sale, you, as the buyer, will need to cover the following expenses:

• Property transfer tax (6.5%)
• Notary service fee (the amount varies between €800 - €1,500)
• Property registration fee (approximately €500)

As the new owner, you will need to transfer contracts for water, electricity, public services of the complex, and municipality to your name. All these payments are authorized from your account, and their payment will not cause you any additional problems. With a notarial power of attorney, your personal presence is not necessary; on your behalf, we can carry out all necessary agreements for the change of ownership in all required instances.