Buying a property in Tenerife
To purchase a property in Tenerife there are various bureaucratic procedures that need to be undertaken, all of which we will assist you with from start to finish.
Firstly, you need to obtain a “NIE”, this is an alphanumeric code issued by the police to identify all non-Spanish European Citizens (it is presumed that this will be extended to UK nationals after Brexit). This can be obtained by queuing at the police station early in the morning (only a limited number are issued each day), after having filled in 2 forms and paid the tax (about €9.00) in a bank previously. We will assist and queue with you to take you through the procedure at no cost if you have decided to purchase a property.
In the alternative if you do not wish to queue up in the morning you can delegate us to do it for you with a specific power of attorney with a Notary, this would cost all about € 120.
You would need to open a bank account in order to arrange direct debits for utility bills. Again, we will give you all the assistance necessary and, if requested, accompany you to the bank, with no charge if you are purchasing a property through us.
It is advisable, but not necessary, to seek assistance from an accountant/lawyer to assist with the purchase, especially if you are considering buying a property of value (say over €500.000).
We will be happy to introduce you to lawyers who speak English.
Completion at the Notary
Prior to completion, the Agent (or your lawyer) will check that there are no outstanding debts on the property and that it is correctly registered in the Land Registry. They will then draw up a draft of the Act that will be sent to the Notary’s office for examination. In Spain, the completion of the sale is performed at a Notary’s office. The Estate Agent (and/or lawyer) will provide the Notary with all the necessary legal documents and deeds, the Notary will simply check and certify that the sale is legal and that the person signing has been identified by him as the persons mentioned in the Act.
Once the Notary has completed the sale the Agent (or appointed lawyer) will proceed to pay the necessary taxes (purchase tax levied at 6.5% plus various Municipal taxes and registration fees) and to present the Act to the Registry Office.
The Act will also usually provide for delegating the Agent to arrange on to change the utility contracts into your name and to arrange for them to be paid by direct debit.
As an average the TOTAL costs you should budget for above expenses usually amount to approximately 10% of the purchase price, a bit less for properties over around € 300.000.