When buying real estate in Tenerife, there are many things you should take into account. These include the types of taxes and procedures you will need to follow, which will ensure a smooth transaction. You should also have all of your financial affairs in order, as the tax laws are complex. The wealth tax, for example, can make buying a property in Tenerife more complicated than you might have anticipated.
Property in Tacoronte
If you’re considering a new property in the Spanish Canary Islands, consider property in Tacoronte, a rural city in the northeast of the island. The housing market in Tacoronte hit rock bottom about a decade ago, but tourism and development are now helping bring the island back to life. If you’re looking for a three-bedroom property with sea views, consider this option.
This large three-storey property is located in the north of Tenerife, in a neighbourhood called La Luz. It’s only a few minutes’ drive from all the necessary services and has easy access to the motorway. The property is 410m2 and built on a plot of 530m2. It offers a large living room, independent kitchen, 5 bedrooms, garage, orchard, and possibility to set up a business on the ground floor.
If you’re looking for a property with sea views, look no further than the large rustic chalet offered by Tenerife Sun Properties. This property is located in the north of Tenerife and is located near Barranco de las Lajas. It boasts 2000m2 of living space and has a 7,000-square-meter plot, making it an excellent choice for a family home. It also has a large pool and a private garden. In addition, it has a two-car garage and a storeroom.
This land is located in a cul-de-sac, with very few neighbours. It is also close to a shopping centre, cafeteria, and public parking. Moreover, the property is designed with a clean and simple design, with large windows.
Taxes to pay
If you are buying a property in Tenerife, you need to pay several taxes. There are two main types of taxes: the IGIC (Value Added Tax) and the ITP (Property Transfer Tax). IGIC taxes are only applied on newly built houses, while the ITP applies to secondhand residences. Both types of taxes have different rates and must be paid. If you are buying a house through a mortgage, you also have to pay a third party tax, the Tax on Documented Legal Acts. Lastly, you need to pay for the registration of the deed in the Land Registry.
Tenerife is a part of the Canary Islands, which means that it is subject to Spanish jurisdiction. However, the island enjoys a certain level of autonomy from the Kingdom. Indirect taxes are similar to those in mainland Spain. Regardless of whether you’re planning to live in the island permanently, you must pay the taxes.
Registration fees are about 8% to 10% of the property’s value. There’s also a 3% retention tax for non-residents, which is paid directly to the tax office. This retains the money that would have been paid to the Spanish tax authorities had the property been purchased by a resident. Similarly, if you’re buying a new home, you’ll have to pay the IGIC tax to the developer. In addition, there’s a 0.05% transfer tax for buying a property, which has to be paid to the Spanish tax authority 30 days after you sign the deeds. In most cases, this tax is handled by the estate agent or solicitor.
The tax regulations for buying real estate in Tenerife are quite different than in the UK. In the UK, you can buy property in Pound Sterling, whereas in Spain, you can only do it with a fiscal resident. As the buyer, you must also transfer money from your UK bank account to a Tenerife bank account. Moreover, the fiscal adviser and Notary will explain to you which utilities will be transferred to your account, such as electricity, rubbish, town hall and community registration.
You also need to make sure that you have a foreigner identification number (NIV). This is a personal number that is required to make any transactions in Tenerife. This number is important because you will need it to pay taxes and expenses. In addition, you will also need it to open a business in Tenerife.
Procedures for buying a house in Tenerife
Buying a house in Tenerife is a time-consuming and convoluted process. However, if you start early, you’ll avoid unnecessary stress and frustration later on. The first step is to secure a mortgage. This won’t cost you anything, and it will allow you to shop around for the best deal.
Next, you’ll need to find out who the seller is. This can be done by contacting the local notary, which will verify the terms of the sale. You’ll also want to look into the building’s zoning and check any renovations done. Finally, you’ll need to register the property in the Land Registry. You’ll also need a banker’s draft to complete the process.
When you’re ready to buy a property in Tenerife, you’ll need to know your budget and what type of property you’d like. Also, you’ll need to know whether or not you’re buying a second home or for rental income. Remember that you’ll need to comply with letting laws if you’re looking to rent the property out.
After finding the property that meets your criteria, you’ll need to pay the deposit and hire a lawyer. The lawyer’s fee will depend on the type of property you’re buying and how much work he or she has to do, but you should budget for PS2,000 for legal fees.
Obtaining a NIE number is necessary for foreign buyers. This number is a legal document that identifies your nationality. Your estate agent or lawyer will be able to help you obtain this number. This is an essential step in the buying process. It is necessary to complete the process in 4-6 weeks.
Getting a Solicitor
If you’re buying a property in Tenerife, you’ll need a solicitor. This is especially important if you don’t speak Spanish, as it’s important to ensure the deal is clear and there are no misunderstandings. It’s also a good idea to get a lawyer who has experience dealing with UK clients. It’s important to avoid relying on recommendations from friends and family members when choosing a solicitor, as they might not be the best choice.
A solicitor will be able to advise you on the correct legal process to take. He or she will first of all check the title of the property, any problems with it, and whether the owner is a qualified property seller. In addition, the solicitor will check whether the property is legally yours, and whether it has any restrictions on its use. Once the property has been checked, the solicitor will draw up an initial purchase contract, which is typically accompanied by a 10% deposit.
A solicitor for real estate in Tenerife will be well-versed in Tenerife law. Tenerife Solicitors are licensed by the Tenerife Law Society and the Solicitors Regulation Authority in the UK. This means that they can provide legal services in English and Spanish. The solicitor will also be able to help you obtain sworn UK documents.
The lawyer will also help you with any paperwork related to the purchase of Tenerife property. For example, you need to have a valid passport, IGIC number, Spanish bank account and residency in order to make a legally binding purchase. A solicitor will also negotiate and prepare a contract for you.
When choosing a solicitor for real estate in Tenerive, make sure that they’re members of the Tenerife Property Group. Members of this group must have lived on Tenerife for at least ten years and are vetted by the Association of International Property Professionals.