Any person is able to buy in Tenerife. Non residents are able to proceed guided by a legal representative, which could be a lawyer, solicitor or an authorised Estate Agent.You can also create a S.L. company, buy cars, run and administrate a business.

In Spain, private contracts and Title Deeds are completely valid, but for correct legal registration they have to be signed by a Notario/Lawyer. The expenses and taxes originated when you buy a property are subjected to the price to be written in the Deed.

An average could be:
6.5 % Purchase tax ( “transmision de Bienes patrimoniales”) 2% Notary/Legal Fees, Solicitors, Registration of the Property.

In the case of a brand new building or first Deed, instead of 6.5%, you would pay 5% IGIC (First Deed Tax), making a total of 7.5% instead of 8.5%. If you get a mortgage here in Tenerife (which we can obtain from different Banks); you have to add another 2-3% over the money to be borrowed as valuation, administrative charges, mortgage approval and issue, registration and Notary fees for the mortgage, which gives you an average of 11% total. For the legal representation and After Deed procedure, we offer a special cost for our clients for the total procedure, which includes: Notary, Registration office, NIE requirement, re-address and change of name of all services (water and electricity, rubish collection), community charges, and IBI (annual tax). Non residents who sell have a 5% retention payment to be done at the tax office (Hacienda) into the buyer's name.

That service is included in the after Deed procedure. The other tax that correspond's to the buyer is La Plusvalía (benefit tax), which is paid once in a lifetime around 1 month after the purchase. The costs are not normally high and depend on the difference in the previous deed declared amount and the actual price. The IBI (annual property tax), has to be paid annually and the cost depends of the kind of property valuation, and location (over 0,3-1.3% of the fiscal value).

Power of Attorney

In case either the seller or buyer cannot be in Tenerife at the moment of the Deed signature, they could authorize a third person to sign in their name. This special Power of attorney can be done at the same Notary office where the Deed will be signed, or any another, if the person who authorizes is here. Alternatively there are two ways of achieving this: To have it made at the closest Spanish embassy; or having it done by a Notario and having it stamped with the “Apostille de La Haya”, which makes it valid in the European Community. If in any specific case this has to be applied to account movements or mortgages signatures, everything has to be written in the Document.

Wills

To assist in the executor process in the UK it is beneficial to have a separate Will covering inheritance details with regard to your property and assets in Tenerife. This can easily be done at the same Notary/Lawyers office. The cost is around 110 Euros for a couple, including 2 wills (one for each person) complete and is a service that we can assist our clients with.

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