Agata's Real Estate Tenerife

HOW IS THE CLIMATE ON TENERIFE NORTH IN WINTER?

Tenerife North enjoys one of the world's best climates which is why it is often described as the ‘island of eternal spring.’ This beautiful place, located just off the north coast of Africa, promises sunshine, spectacular views and warm temperatures for most of the year.

The combination of trade winds and the sea breeze produce warm but not suffocating summers and temperate winters, with temperatures between 17ºC (63ºF) and 21ºC (70ºF).

This characteristic Canarian climate produces some unique situations including seeing snow in the mountains. This is particularly interesting in Mount Teide National Park where snow usually falls every year during the winter months, while the rest of the island’s coastline enjoys beautiful sunshine. You can literally be cooling off in the warm ocean while looking up at El Teide, which is often covered in snow... a fantastic sight! Please make a judgment yourself watching our short winter video compilation below.

WHAT IS NECESSARY TO BUY A PROPERTY ON TENERIFE?

If you are a citizen of European Union you can buy a property on Tenerife without any limitations. For the notary closing the buyer needs to have valid passport or ID and NIE (spanish tax number for foreigners). If you are buying with us, our agency will assist you with the procedure of getting the NIE.

Non European Union Residents (for example Russians, Americans, Swiss) can purchase without limitations urban property, however to buy a rustic property they will be required to obtain a permit from Spanish Ministry of Defense (with certain exceptions).

IS IT OBLIGATORY TO HAVE A BANK ACCOUNT IN SPAIN TO BUY A PROPERTY?

There is no law requiring the property owner to have a bank account in Spain. Utility payments can be made from the bank account from any country. However for purchase at the notary, majority of the sellers only accept bank confirmed draft issued by a spanish bank. Therefore you will most probably need an account in Spain before the notary closing.

We advise our clients with a list of English, German and Polish speaking bankers who can open a bank account for you. There exists also possibility of opening a bank account online without being in Spain.

In the event of a problem opening a bank account in Spain, the transaction can be made thru our agency depository account.

WHAT ARE THE PURCHASE COSTS OF BUYING REAL ESTATE ON TENERIFE?

The purchaser of the property on Tenerife shall be prepared to cover following expenses:

-6.5% transaction tax (from the declared property price at the notary)

-notary expenses (depending on the transaction usually between 400-700 EUR)

-registration fees in spanish Land Registry (around 300-600 EUR)

Deadline to pay this cost is 30 days after the transaction.

In some cases the price can be divided between the pure property and furniture value. We will advise you accordingly.

WHAT ARE THE COSTS OF MAINTAINING A FLAT ON TENERIFE?

Being an owner of an apartment on Tenerife you will incur following costs:

-IBI (annual property tax, varies from property and area, from 50 EUR to over 1000 EUR for villas)

-utility bills -electricity, water and sometimes gas (depending on private consumption)

-fees for garbage and sewage system (usually in form of quartelrly taxes of 25EUR)

-community fees (if the property lies within a community)

WHAT IS THE BUYING PROCEDURE ON TENERIFE?

When you decide to buy a property, a private reservation contract (contrato de arras) is generally the first legal document to be signed in the purchase process in Spain. Once this contract is signed and the reservation deposit paid (usually 10% of the purchase price) the vendor must take the property off the market and freeze the agreed purchase price. Than you are sure your dream house will be taken off the market until you are ready to finalise purchase at notary, and it will not be sold to anybody else to your bitter surprise. We prepare the reservation contract in your language.

We will accompany you and translate at the notary and ensure that the property will be inscribed in your name in the Spanish Land Registry.

IS IT POSSIBLE TO GET A MORTGAGE TO BUY A PROPERT ON THE CANARY ISLANDS?

Banks generally grant up to 60% to non Spanish residents. Please ask us for contact details of bankers who can help you pre-qualify for a mortgage.

DO I NEED TO BE IN TENERIFE TO MAKE A RESERVATION FOR A PROPERTY?

In any case we recommend you to view the property prior the reservation. However for signing a private reservation contract you do not need to be in Spain. If you wish we can prepare the contract, send it to you via e-mail and you just print it out, and send it back to us signed, followed by the wire transfer of agreed deposit.

DO I NEED TO COME TO TENERIFE FOR A NOTARY CLOSING?

It is possible to purchase or to sell a property with power of attorney.

CAN A PROPERTY PRICE OR DEPOSIT BE NEGOTIATED?

Generally the final purchase price, deposit and other purchase conditions (like closing date) can be negotiated, but it depends on the flexibility of the owner. Prior to the signing of the reservation document sometimes there is room to negotiate the final price.

We insist to present the sellers only deposited offers to achieve better results.

DO I NEED A LAWYER/SOLICITOR TO BUY A PROPERTY ON TENERIFE?

You are obviously free to take an independent solicitor/lawyer to check the paperwork of the property if you wish. Although it is not necessary. Our agency and notary carries out all the paperwork for you.

WHO PAYS REAL ESTATE AGENCY COMISSION ON TENERIFE?

It is the seller who pays agency commission on Tenerife.

IS IT POSSIBLE TO GET A MORTGAGE AS A NON RESIDENT?

Yes. Generally banks grant up to 60% (in some rare cases 70%) mortgages. You should pay the mortgage back before the age of 75 years old. we recommend contacting a bank or a mortgage broker to verify your eligibility for a mortgage before you start looking at properties, so you know what your budget is.

IS IT POSSIBLE TO BECOME A RESIDENT OF TENERIFE?

Buying a property on Tenerife does not automatically give you residency in Spain. There are additional requirements. European citizens will be asked to present a valid health insurance and income (or a minimum deposited of little bit less than 6.000 EUR in a Spanish bank). Additionally for non European citizens golden visa program exists in Spain. Golden visa enables you to receive a 5 year Schengen Visa and spanish residency if you buy a property on Tenerife valued over 500.000 EUR.

WHAT ARE THE COSTS FOR THE SELLER ON TENERIFE?

Seller is responsible for agency commission, plusvalia tax and personal income tax. If you are non resident the 3% income tax on the sale value will be retained at the closing at the notary.

Plusvalia depends on how many years you own the property and the catastral ground value (valor catastral de suelo). We can assist you with plusvalia tax calculation.

WHAT TO DO IF A PROEPRTY IS ILLEGAL IN SPAIN?

Sometimes in Spain there are some properties which are illegal, especially in rural areas. We see it unfortunately quite often on Tenerife. But in some cases, it can be possible to regularize the situation in the Land Registry. To do it, it is necessary to do formarize escritura de obra nueva or in a case that just part of the property is illegal escritura de ampliacion de obra nueva. The easiest way it to do it in accordance to art 199 claiming a prescripcion urbanistica (when the property is overdue to be claimed against). Prescription time is different in each comunidad autonoma. In Canary Islands prescription period is only 4 years. You will need an arcitect to do prepare so called "inofrme de antiguedad" where he certifies age of the construction as well it's surface. Be aware of "seguro decenal" limitation if an architect certifies less than 10 years. There are some exceptions however when you cannot legalize a property: for example, if it was constructed on "suelo protejido" - protected land. You cannot declare a building on the land which is protected. Note if a property is in a complex, you may need additional document from the community, which sometimes is not so easy to get.

FAQ