Advice On Buying Property In Tenerife, Canary Islands

It is vital to appoint a solicitor to assist in your Tenerife property purchase,we always appoint an independent conveyancer who will then carry out all searches on the property, obtaining all the necessary paperwork, to confirm that there are no outstanding debts or embargoes on the property. The agency or lawyer has the responsibility to gather up-to-date receipts and to see that there are no pending debts on the property.

The paperwork gathered includes:Nota Simple (Confirmation of ownership and any mortgages or embargoes), I.B.I. (Local council rates), Electricity and water receipts up to date, Community fees receipts up to date, signed and approved by the President of the community of owners and the secretary, Copy of the deed (Escritura), NIE number (Numero de Identificacin de Extranjeros).

Once the deeds to your new home have been signed, you need to obtain your NIE number. This is a simple process which is needed to register the property. An NIE number is also needed to change the household bills into your name, i.e. Water, Community charges, Electricity, Telephone, Rates etc..

Applying for a Bank Account in Tenerife. The cost of opening a bank account for 'non-residents' is around 10 for the administration fee. Help is also on hand to set up Direct Debits for your household bills, so you have peace of mind that all your bills are being paid whilst you are not here in Tenerife.

Applying for a Mortgage in Tenerife. You can choose to apply for a mortgage in Tenerife or from the UK. Mortgage rates in Tenerife tend to be amongst the lowest in Europe, and are currently around 3.75 of the bank valuation, for residents it is usually around 80 mortgage opening commission. Insurance will vary from 150 to 350 per year. (Tenerife Property Consultancy will be able to recommend and arrange adequate insurance for you). Notary and registration of the mortgage. Provided you submit the requested financial information, the mortgage can be available within 10 to 15 working days. The financial information requested is minimal and a mortgage is available whether you are self-employed or employed. It does not reflect your country of origin.

Buying a Property in Tenerife. Once you have decided on the property you wish to purchase and the terms and conditions have been negotiated with the vendor then a deposit of 10 is payable on the signing of the title deeds before the Notary.

If you are purchasing a new construction then the constructor will ask for stage payments to be made on the property. These can vary dependent on the constructor. Normally an initial reservation deposit is required; this is then normally made up to 10 on commencement of the foundations, 30 on completion at the time of signing the escritura (Title deeds).

Your appointed solicitor will then carry out all necessary searches on the property; to ensure that it is owned by the vendor, it has planning permission, and there are no outstanding debts or charges on the property. Once the searches on the property are satisfactorily completed and the deposit has been paid in accordance with the terms and conditions of the contract then the title deeds are signed by both the buyer and the seller before the Notary.

The Notary (Notaria). This is a solicitor appointed by the Spanish government to witness the signing of all legal public documents. In this case the title deeds (escritura) of the property. He represents both the buyer and the seller. The Notary fees are around 2 if new and Stamp Duty 0.5 of the price on the escritura and to pay it to the tax office when buying property from non-resident vendors. b) Capital Gains

Whilst we endeavour to ensure that the information is correct at the time of publishing this information is intended for guidance only.