Buying Canary Islands Property

The information provided here is only a basic guide based on buying property in the Canary Island's archipelago.

• Once you have selected the property & agreed the price you will be required to place a deposit of 10% with the agent who should draw up a contract to be signed by both parties known as (Contrato privado de compraventa). It is important at this time to make sure the contract has an arres agreement if you wish to obtain a mortgage and is drawn up in a way that suits your requirements e.g. time periods, fixtures & fittings, furnishings etc as the deposit is not refundable if for some reason you can not complete the purchase. However if the seller is not able to proceed with the sale they are normally required to reimburse the prospective purchaser with twice the original deposit.  

• You may wish to use a lawyer in which case you can request a list of lawyers to act on your behalf in the purchase from the British consulate or word of mouth from purchasers will often give you an idea of the quality of the Lawyer. It is advisable to use a lawyer from the outset who will act on your behalf in an impartial manner.

• It is important to make sure that the person selling the property has the legal right, as the property is often distributed between the siblings of the family under Spanish law also that it is free of charges as in Spain debts are charged to the property and any outstanding debts i.e. electricity, water etc will be passed on to the new owner. you can obtain a Nota Simple from your Lawyer.

• Extras will be incurred when purchasing a property, make sure you are up to date with local taxes, so you can correctly calculate your money. Be aware that on completion of the purchase the new owner will become liable for any unpaid bills on the property, therefore it is in your interest to make sure all bills concerning the property have been paid in full.                               

• On purchase of the property a transmission tax (stamp duty) is calculated, this should be explained by your legal representative.

• To complete the purchase you will be required or you can give power of attorney to sign Escritura de compraventa in the presence of the notary who will duly witness the documents which are comparative to the deeds of the property. Prior to you signing the Escritura de compraventa a legal interpreter will explain the document to you and at this time you should ask them to explain any points you do not understand.

• Once your contract has been notarised the documents must be registered with the property registry to fully complete the transaction, you can either do this your self or instruct your lawyer.

• There are two main property taxes on purchase Impuesto sobre bienes inmeubles "IBI" which based on the property value at the time of purchase  & Rendimientos del capital inmobiliario

• Fees payable when purchasing a property in Spain are approx. 10%. If you take out a Spanish mortgage a further cost will be passed on to you by your notary for registering the charge of the lender with the land registry and the charge for the interpreter.
  Valuations are carried out by the lenders and are normally around 1% of the loan amount.

• After completion you should inform the local authority (Ayuntamiento) of the change of ownership.

• The local rates are due annually, it is the responsibility of the property owner to make sure the rates are paid as reminders are not issued. Ask your agent when & where they should be paid.  Your agent can normally help with the transfer of domestic bills to your name.

• If you would like any specific information on purchasing a property in the Canary Islands please e-mail us admin@alltheseasons.com