🏝️ Buying Property in Tenerife: A Step‑by‑Step Guide:
Purchasing a property in Tenerife is a huge decision — often the biggest investment many of us make outside our home country. It can feel daunting 😅, but with the right support, the process becomes smooth, exciting, and even enjoyable.
Here’s what to expect once you’ve found your dream home under the Tenerife sun 🌞.
⚖️ Step 1: Instruct an Independent Lawyer
- Always work with a bonded lawyer registered with the Bar Association in Santa Cruz de Tenerife.
- This protects you before, during, and after the purchase.
- 🚩 If an agent suggests skipping a lawyer or handling conveyancing in‑house, treat it as a red flag.
- Typical fees: €1,800 + IGIC (check if utilities transfer is included).
- We can connect you with English‑speaking, independent lawyers who explain their role clearly and cap fees upfront.
💶 Step 2: Mortgage Arrangements
- Non‑residents usually borrow up to 60% of the property value.
- Get a binding mortgage offer (FEIN) before paying deposits — most deposits are non‑refundable.
- Ask for a mortgage clause in the contract (if the vendor agrees) to protect your deposit if financing falls through.
- 📝 Pre‑qualification helps you understand your budget before viewing properties.
💰 Step 3: Reservation Deposit
- Properties remain on the market until a deposit is paid.
- Standard deposit: 10% of purchase price.
- If that’s not possible immediately, a holding deposit (~€3,000) secures the property and allows contracts to be prepared.
- Contracts outline terms, conditions, and deadlines for the balance of the deposit.
📜 Step 4: Legal Checks
Your lawyer will:
- Request a Nota Simple Informativa from the Land Registry (confirming ownership, size, debts, or charges).
- Check with the Town Hall, utility companies, and community administrators for outstanding debts.
⚠️ Remember: any undiscovered debt becomes the responsibility of the new owner.
🔑 Step 5: Deposit & Contract
- Standard deposit: 10% (non‑refundable).
- If the buyer defaults, deposit is lost. If the vendor defaults, they must refund the deposit plus compensation.
- Completion usually takes 6–8 weeks (10–12 weeks if a mortgage is involved).
- Extensions can be negotiated to avoid unnecessary pressure.
🏦 Step 6: Bank Checks & NIE
- Banks send a surveyor to value the property before confirming the mortgage.
- Non‑Spanish residents must obtain an NIE (Número de Identificación de Extranjero) to move funds in Spain.
- With guidance, this bureaucratic step can be handled smoothly ✨.
💸 Step 7: Funds & Costs
- About 2 weeks before completion, your lawyer provides a breakdown of funds required.
- Expect around 10% of the purchase price in costs (taxes, notary, registry, lawyer, utilities).
- Funds are transferred to your lawyer’s client account.
- 💱 Currency exchange companies often offer better rates than banks — worth exploring.
🖋️ Step 8: Completion at the Notary
- The Title Deed is signed at the Notary office.
- All parties attend (including bank reps if applicable).
- If you can’t attend, grant Power of Attorney to your lawyer.
- 🎉 Once signed, you’re the legal owner — keys in hand, ready to start your Tenerife chapter!
🌟 Final Thought
Buying property in Tenerife doesn’t have to be stressful. With the right lawyer, clear mortgage planning, and trusted guidance, the process is straightforward and rewarding. Soon enough, you’ll be enjoying sunsets over the Atlantic and calling Tenerife home 🏝️.