Guide to Buying a property in Canary Islands
Buying a property in Canary Islands – In Spain, the sale of property is completed at a public notary, who signs in the name of both clients guaranteeing transfer of ownership on the records.Proper preparation and finding an appropriate agent are the secrets to success.
At Serneholt Estate, we combine knowledge with integrity and absolute transparency. We’ll guide you through the entire process, inform you at every stage, and help you relax and feel confident along the way.
This Buying Guide takes you step by step through the process, right to the notary and the keys to your new home.
1. Preparations
Financing
Before going, do know your funding options. Most buyers arrange mortgages either at home or with a Spanish bank (typically up to 70% of the market value). We can assist connect you with the right mortgage providers.
NIE Number
To purchase property in Spain, you need a Spanish tax identification number (NIE). This can be arranged by your lawyer or you can make an application at the Spanish embassy or police stations.
Finding Your Property
Once the financing and NIE have been arranged, the search is conducted. Let us know your wish list and we’ll provide the most suitable properties available, fitting viewings to allow you to see the best in the shortest amount of time.
2. Viewings
Viewings are the heart of the buying process. Your requirements are dealt with seriously at Serneholt Estate, so you will not be presented with properties that are unsuitable for your needs.
We’ll walk you through every property with special attention, noting potential and feasible issues. As all Spanish houses are sold “as is,” we may recommend a surveyor in case there are further inspections to be conducted. Your attorney will carry out the appropriate legal due diligence.
3. Bidding & Contracts
Reservation / Private Purchase Contract (Contrato de Arras)
When you’ve found the right property, a contract is drawn up and a fee of normally 10 % of the purchase price is paid to secure it and remove it from the market.
Legal Representation
In Spain, buyer and seller are usually represented by a lawyer. Your lawyer will assist you properly and safely through the process. If you do not have one, we can recommend trustworthy professionals.
4. Completion before the Notary
On signing day, the two parties (their representatives) visit the notary. The notary verifies identities, ascertains lawful status, and witnesses the signing of the ownership deed (Escritura Pública de Compraventa).
Payment
Payment is made via the notary and charges and taxes are paid. The non-resident sellers have 3% of the sale value deducted for tax recovery, which is recoverable later once stipulations are fulfilled.
Access
Keys are taken at the notary, and the property belongs to you. Houses in most cases are delivered in their current condition unless otherwise agreed.
Costs of Buying Property in Spain
The overall cost of purchasing property generally ranges from 10% to 14% of the value of the property.
Transfer Tax: 7% on resale properties.
IGIC & Stamp Duty: 7% IGIC on new build and 0.5–1.5% stamp duty.
Fees for Notary & Registration: Usually €800–1,300 in total.
Legal Costs: Aprox 1% + IGIC of purchase.
Cost of Mortgage: Stamp Duty (0.5–1%), bank fees, and valuations.
Service Connections: In the case of new homes, installation of the utilities may be charged.
Annual Costs of Ownership: Local tax on property (IBI), community charges, and tax charges on income.
Buying with Confidence
Buying a property in Spain can seem complex, but with the right guidance it becomes an exciting journey towards your dream home. At Serneholt Estate, we’re committed to clear communication, expert advice, and personalised service at every step.
Trust us to make your buying experience smooth, secure, and truly rewarding.