Frequently Asked Questions

Not surprisingly, as British estate agents in Tenerife we often hear the same questions and concerns from our UK clientele who may be interested in buying property on the island but are concerned with how things work here. Here are a few of the most commonly asked questions though if you have any concerns about purchasing property in Tenerife please feel free to email them to us.

Q. How much do I account for legal fees and taxes when buying property in Tenerife?

A. Usually between 8.5% and 10% of the purchase price.

Q. Is the buying process in Tenerife the same as in the U.K.?

A. No it is different from the U.K. but is the same as in Europe and the U.S.A. in that a price is agreed between buyer and seller, a legally binding contract is signed with a deposit paid by the buyer, (usually 10% of the purchase price) and a completion date set to suit both parties - usually 4 weeks.

The buyer and seller (or an agent with power of attorney) then meet at the Notary to sign the documents. The Notary translates the Spanish documents in English and makes sure that there are no outstanding charges on the property guaranteeing your home is free of all debts.

Q. Do I need to become a resident.

A. No, but when buying a property here, you need to obtain an N.I.E. number which enables the taxes on your purchase to be paid. We can organise this for you.

Q. Can I obtain a mortgage?

A. Yes for residents up to 80%, non-residents up to 60% from Spanish Banks, alternatively you can arrange finance from U.K. banks against property in the UK.

Q. When I find my Property,  what next?

A. You will sign a contract and pay 10% deposit. The balance becoming due in about 4 -6 weeks when you or your Power of Attorney will visit the Notary to finalise the purchase. The deposit can be paid into our "Client Account", or that of a lawyer.

Q. I’ve heard of people that have bought a home or business in Tenerife and inherited a lot of debts.

A. There have been horrific cases of this happening in the past. This cannot happen if you use qualified agents like us. We ensure you receive the property free of all debts, correct title and all necessary paperwork up to date. The Notary system ensures that a debt-free transfer takes place.


Q. I speak little or no Spanish, will this be a problem?

A. No by far the majority of businesses in the Canary Islands are tourist based. Over half of more than 5 million tourists are English and most of the others speak English as a second language. Any Spanish required during the transaction will be taken care of by us.

Q. I don’t understand Spanish rules and regulations and I am worried about making a mistake.

A. Regulations are not complicated but we will introduce you to a Gestor who will look after all your paperwork and legal requirements. A Gestor is a qualified person, who specialises in tax and legal work.

Q. I’ve heard tax is low in the Canaries.

A. Yes very much so. V.A.T. (IGIC) is 5%.

Q. Do I need a residents work permit?

A. No, Tenerife is part of Spain, therefore part of the European Community.

Q. Why do you recommend the Canary Islands?

A. Because the weather is always Spring and Summer there is a 12 month tourist season. Other benefits include low taxation, good quality of life, safe family lifestyle, etc.

Q. What are the schools like?

A. Your child can be educated in the Spanish state system. Children very quickly pick up a foreign language. Alternatively, there are both English and Spanish private schools. These are inexpensive compared to private schools in the U.K.