BUYING GUIDES
Buying and selling property in Tenerife & Fuerteventura
Tate Properties offer a complete service from start to finish of the purchase or selling of your property in the Canary Islands.
When purchasing a property through us we ensure there are no outstanding debts on the property you have chosen, i.e. water and electricity bills, community fees, IBI (Local Council Rates), outstanding mortgage or embargos.
If any of the above are found they are deducted and corrected by the previous owner before completion.
When you decide to purchase a property you would be required to place a 10% deposit or in the case of buying direct from building plans you could be requested to pay anything from 10% to 30% deposit, according to the contract you enter into with them.
After you have placed a deposit Tate Properties legal team will draw up a contract outlining the payment structure/monies outstanding and an estimated date of completion (this includes signing for your new property in the presence of a notario).
N.I.E.
Any person wishing to purchase a property, open a bank account or have any other fiscal representation in Spain must obtain an identification number (Numero de Identificacion de Extranjero – N.I.E.).
This number is personal to you and can be easily obtained with our help.
Taxes and Legal Costs
There are taxes and fees payable on all transfers of Spanish properties. The Notary will charge a fee for preparing the Escritura and there is a further fee for registering the property in the new owners name.
You would be required to find approximately 10% in taxes and legal costs and these are made up of the following,
6% ITP tax (Impuesto sobre Transmisiones Patrimoniales) when buying resale property, or 5% ITP plus 0.5% stamp duty if purchasing new property
Property registration fee
Plus Valia (Capital Gains Tax), which is levied at various rates on the annual increase in value since the previous sale
Tax Retention
Under current legislation it is necessary for 5% of the declared purchase price of the property to be retained by the purchaser, or his representative, and for the money to be paid to the Spanish Inland Revenue within 30 days of signing for the title deeds.
This is only payable whenever the vendor is a non-resident of Spain to ensure that any taxes owed to the Spanish Inland Revenue are paid.
