FAQ

Questions related to buying a home

What is the actual condition of the property?
The descriptions and pictures are helpful, but it’s also worth asking about hidden defects, renovations and the condition of the structure.
This can tell you a lot about the value of the property, the neighbourhood or the urgency, which can also influence the deal.
It’s important to know your electricity, gas, water bills, common charges and other maintenance costs. Whether the condominium collects money for itself (this is hidden, not always revealed and is not part of the common charges, but is in addition to it. It can be an extra cost of up to €100 per month).
It is worthwhile to check the condition of the wiring, fittings and machinery.
Cracks, leaks, mould or mechanical faults are basic information.
Nearby shops, kindergartens, schools, public transport, parking – these all have a significant influence on the decision to buy.
Buyers often ask about crime statistics and the composition of the residential community.
Nearby shops, kindergartens, schools, public transport, parking – these all have a significant influence on the decision to buy.
Buyers often ask about crime statistics and the composition of the residential community.
Mortgages, usufruct, litigation, enforcement – knowledge of these is essential. You will find out about these at the notary, but it is worth clarifying them in advance.
It is an added value and can often be bought or rented separately.
Neighbours, street traffic, nearby institutions can all affect the quality of life.
An important question is whether there is a reserve, ongoing renovation, backlog.
  • Yes, this is one of the most important questions at the beginning of the buying process.
  • It should always be made clear whether the property is being handed over in occupied or vacant condition, and the conditions under which the tenants are staying.

If there is a tenant in the property:

  • You should ask for a copy of the rental contract.
  • Check whether the tenancy is for a fixed or indefinite period.
  • It is important to know how long tenants can stay and under what conditions the contract can be terminated.
  • In some cases, tenants may have a right of first refusal.

If there is no tenant:

  • You should ask for a written certificate or declaration that the property is unencumbered and unoccupied.
  • This ensures that the property is ready for immediate occupation on handover.

Questions related to shopping

What documents will you need to make the purchase?
  • Ownership card (bota simple)
  • Energy certification
  • Floor plan
  • Contract of sale (escritura)
  • NIE Number
  • Spanish bank account number
When buying a property, it is strongly recommended (and practically required) for both buyer and seller to have a Spanish bank account, preferably with a Spanish IBAN. This is important because taxes, duties, notary fees, real estate fees, consumer services and legal escrow transactions are all settled through a Spanish bank account.

FOR INDEPENDENT BUYERS → a Spanish bank account is practically compulsory

  • According to the 2026 guidelines, to buy property in Spain you need a local bank account because that is how you pay for it:
    • the deposit
    • the purchase price
    • taxes related to the purchase (ITP or IGIC)
    • the notary
    • subsequent charges for utility services

FOR SALE → highly recommended Spanish bank account

  • Payment of the purchase price is often:
    • by bank transfer, or
    • managed by an authorised lawyer in a Spanish bank account (escrow / legal deposit)
      This process is made simple and secure by the existence of a Spanish IBAN.

NON-RESIDENT BANK ACCOUNT

  • If the buyer/seller does not live in Spain for more than 183 days, they will automatically have to open a non-resident account – This is also the case in the Canary Islands.
  • Characteristics of non-resident accounts:
    • are made for foreigners
    • to buy a fully legal property
    • Spanish IBAN is provided
    • they often ask for a “non-resident certificate”

RESIDENT BANK ACCOUNT
Can only be opened if the customer already has one:

  • NIE + resident card (TIE)
  • Spanish address
  • local tax status
  • this is not a requirement for a real estate transaction – most foreign buyers of real estate use a non-resident account.
  • You can get a local mortgage as a foreigner
  • Usually 60-70% of the purchase price is financed
  • Fixed, variable and mixed rates available
  • The maturity is 10-25 years
  • Substantial documentation and proof of stable income required:
    Passport
    NIE Number
    Income Certificates, Bank Statements
    Spanish Bank Account
    Occasionally translated documents (with official translator)

When buying a property:

  • lawyers and notaries will only accept money paid into a Spanish bank account
  • payments from the tax office (ITP/IGIC, AJD) often require a Spanish IBAN
  • utility transfers (water, electricity, internet) are not always possible without a Spanish IBAN.

Digital banks (Revolut, Wise, N26) do not provide a Spanish IBAN and are not suitable for this purpose.

  • Traditional banks (Santander, CaixaBank, BBVA, Sabadell): they ask for personal appearances, especially for non-residents.
  • Opening an account online – not possible.

Purchase-related costs and taxes

What are the costs of the purchase in addition to the price of the property?

General policy: +9% extra charge on top of the purchase price
This includes:

  • IGIC or ITP
  • AJD
  • notary
  • land office
  • lawyer and gestoría fee

The Canary Islands use a special tax system:
Used property (resale): ITP = 6.5%
New build property: IGIC (instead of VAT) = 7%
AJD: the AJD (Actos Jurídicos Documentados) – notarial deed tax generally 0.5-1.5%

The IGIC (Impuesto General Indirecto Canario) is the Canary Islands’ own consumption tax of 7%, compared to the general 10% IVA in Spain.
Yes, if included on a separate title deed, the higher rate of 21% VAT may apply to additional rooms in new construction.
  • IBI (local property tax): 0.4-1.1% based on the valor catastral.
  • IRNR – Non-Resident Income Tax. If you don’t live there beyond 183 days of the year, payable annually: imputed income is 1.1-2% of the catastral value and 19-24% of this is the effective tax.
General discounts are less common in the Canary Islands and foreigners are mostly not eligible for regional discounts (a national trend).
Yes, an instalment facility can be requested, even for non-resident buyers and for VV/investment property. However, this is not automatic, but can be granted on application to the tax authorities on a case-by-case basis. The instalment facility typically applies to ITP and AJD taxes and the application must be made within the official payment deadline.

Processes involved in buying a property

For what purposes can I buy property in Tenerife?

Property in Tenerife can be bought for a variety of purposes, depending on individual needs and plans:

  • For permanent residence – for year-round habitual residence
  • As a holiday home or second home
  • For investment – long or short term rental
  • For tourist expenditure (VV), provided the property complies with local regulations
  • For planned retirement years for resettlement
  • As an investment for future capital appreciation

The specific use may affect licensing conditions, licensability and taxation, so it is always worth seeking expert advice before buying.

As the Canary Islands’ regulations are very different from the real estate buying process in Hungary, it is essential to involve professionals in the following areas. The absence of these experts or failure to take into account their areas of expertise can lead to extremely risky transactions and investments. Areas of focus:

A trusted local real estate professional is essential:

  • knowledge of location
  • local property market
  • short-term letting
  • subject to authorisation, restricted in many places
  • knowledge of local rules
  • knowledge of local communities
  • local area network

A trusted local legal professional is essential:

  • strong legal control is needed, as the market is now tight
  • knowledge of local legislation, preparation and implementation of the entire purchase process from the conclusion of the contract to the transfer of ownership and utility charges
  • the right to challenge certain documents only through a lawyer (such as non-payment of utility charges, property entries)

Knowledge of a trustworthy local notary is essential:

  • one – also mentioned above – big difference compared to Hungary is that the sale and purchase of real estate is only carried out in front of a notary, in person
  • the exchange of money between the seller and the buyer is also done through the notary’s bank account
  • it is therefore of paramount importance to choose the right notary as a partner in the process

Reliable local accountant essential

  • the fact that only the accountant has access to the local tax systems is also a major difference compared to Hungary
  • only he/she can also manage authorizations for the local client portal (Sede)
  • only he can calculate the taxes to be paid
  • and liaises with the local tax office
  • so a reliable local accounting background is crucial.

The process works in the Canary Islands in the same way as in Spain in general.

At Elizabeth Property, we only and exclusively use a notary as the safest way to make a booking, for all parties involved in the process. The contract is signed in Docusigne, online in all cases.
The deposit is usually 10% of the purchase price and is typically payable within 7 working days of signing the agreement. In justified cases, a time limit of up to 5 working days may be agreed in advance.
If the deposit is not received within the 7 working days, the contract may be extended by mutual agreement and only by prior arrangement.
If both parties have signed the contract, the deposit has been received and the seller subsequently cancels the sale, the seller is obliged to repay the deposit to the buyer in double the amount, in accordance with the legislation in force.
Once the deposit has been paid, the sale will usually take place before a notary within about 3 months. However, this period can be flexibly adjusted by mutual agreement and extended to 4-5 months if required.
If the seller fails to appear at the notary’s signature and the sale is therefore void, the seller is obliged to repay the buyer double the amount of the deposit, in accordance with the legislation in force.
To avoid any misunderstandings, photos taken at the time of viewing must be attached to the booking contract, documenting the condition of the property at the time. This will ensure that the property is delivered in the condition it was viewed in at the time of the sale.
The process of buying a property in Tenerife consists of several steps. The final transfer takes place when the parties sign the sales contract (Escritura Pública) before a notary. After the notary’s signature: the new owner’s name is registered in the Spanish Property Registry (Registro de la Propiedad), the lawyer or gestor takes care of the necessary taxes and registrations. The transfer process typically takes 1-3 months, depending on the administration and the official workload.

The apartment is officially transferred to your name when:

  • The sales contract is signed at the notary,
  • The new owner is registered in the land register,
  • The relevant taxes and duties will be paid.

From that moment on, you are the legally registered owner with full ownership.

Without a local bank loan, the entire property purchase process can take anywhere from 2 weeks to 1 to 3 months, depending on the purpose of the purchase.

The main stages of the process:

  • Choosing the right property (this can be a lengthy process, but once this is done, events can quickly accelerate depending on the purpose of the property purchase)
  • Signing the booking contract and paying the 10% deposit
  • Signing a notarial deed of sale (Escritura Pública)
  • Registration of ownership in the land register

The exact length of time will depend on the agreement with the seller, the speed of the administration and the professionals handling the transaction, but without financing the process is significantly faster than buying with credit.

The authority will calculate the tax (ITP or IGIC base) at the higher value.
  • Strict regulation of tourist rental permits
  • Coastal building restrictions
  • Several municipalities have a gap-filling documentation requirement

Used property (ITP 6.5%)

  • 300.000 × 6,5% = 19.500 €

New build property (IGIC 7% + AJD approx. 1%)

  • IGIC: €21 000
  • AJD: approx. €3 000
  • Total tax: ~24 000 €

The total cost is thus expected to be:

  • 330 000-345 000 € (10-15% extra cost)

Issues related to the sale

Issues related to the sale

Why is it important to check the legal status of your property before you advertise?
This is because any hidden encumbrances or entitlement problems (e.g. mortgage, unpaid community charges, fees) during the sale can delay or even frustrate the transaction. The Canary Islands market is extremely transparent and strict, so prior verification is essential.
Yes. Under the Spanish tax system, all parties involved in a sale and purchase transaction are required to have a NIE number, so the seller must have one too. If you don’t have a NIE Number, it’s definitely worth getting it done in good time as the notary can’t close the transaction without it.
Yes. In Spain (including the Canary Islands), an energy performance certificate is a compulsory document for all sales. Without it, the property cannot be advertised or sold.

Because it depends:

  • the customer base
  • the marketability of the property
  • the content of the contract
  • the date of taking of possession by the buyer
  • If you are renting a property, you should always clarify the type of contract, its duration and the right of first refusal.

A property in good condition, clean and tidy can sell faster and at a higher price, especially in Tenerife, where most buyers are foreigners looking for a ready-made property.

Small renovations (painting, decorating) pay off, but the market does not always pay for large investments.

All documents will be checked by the buyer’s lawyer. It is worth collecting them in advance:

  • Community cost certificate
  • utility bills
  • any insurance papers
  • condominium minutes
  • decisions affecting common property.

The tidier the property documentation, the smoother and faster the sale.

In Tenerife, location determines:

  • the selling price
  • the target customer group
  • the selling time
  • also the Community costs
  • Therefore, the location of the property should be taken into account when setting the price.

The lawyer will indicate in advance if there is any encumbrance or right on the title deed that prevents the sale (mortgage, foreclosure, usufruct).
Most cases are manageable, but it is the seller’s responsibility to clarify these in advance.

Extremely.
Overpriced properties remain on the market for months, while properly priced properties sell much faster in the South.

With 95% of foreign buyers looking online for property in Tenerife, a professional visual presentation significantly increases the chances of a sale.
In the southern, tourist-centred areas (Costa Adeje, Los Cristianos, Playa de Las Américas), property prices are rising faster, while in the north the process is slower.
No. With a power of attorney (Poder Notarial), your lawyer can complete the sale for you.

It is done at a notary (Notaría):

  • signing the contract
  • settlement of the purchase price
  • handover of keys.

In Tenerife, location is the primary price factor:

  • South: stable, high demand
  • North: cheaper, but slower sales.
Not compulsory, but Tenerife is a highly international market. A multilingual agent will speed up the process.

Issues related to the sale

  1. Plusvalía Municipal (local land value increase tax)
    This is a municipal tax calculated on the basis of the increase in the value of the property.
  2. Capital Gains Tax (CGT)
    Payable on actual gains when the sale price is higher than the purchase price.
  3. Lawyer’s fees
    In Tenerife, it is highly recommended to use legal representation for the sale.
  4. Notary fees
    Partly borne by the seller
    These costs are usually shared between the seller and the buyer (although practice depends on market practice).
  5. Real estate commission: typically between 3-6%, depending on the agency.
  6. Energy Performance Certificate (Certificado de Eficiencia Energética): a compulsory document for the sale of a property.

Issues related to the sale

  • Nota Simple – contract
  • Escritura (title deed)
  • Energy certification
  • NIE Number
  • Community Debt Relief Certificate
  • Utility data
  • Permits (if renovation has taken place)
  • Tenancy agreement (if there is a tenant)

Issues related to the sale

Two main taxes apply to the seller:

  1. Plusvalía Municipal: Local land value increase tax
  2. Capital Gains Tax (C GT): payable on the difference between the purchase price and the sale price, applies to all sellers – resident and non-resident.

Issues related to the sale

Yes. Plusvalía and capital gains tax are payable even if you are a non-resident.
For non-residents, the bank often automatically withholds a portion (retención).

Issues related to the sale

Yes. The longer you have been an owner, the higher the increase in land value → higher Plusvalía.

Issues related to the sale

Yes, if there are invoiced renovation costs, these will reduce the basis for capital gains tax.

Issues related to the sale

Yes, the seller can also request an instalment or deferred payment for taxes related to the sale of the property (for example, capital gains tax or capital gains tax).

Instalment payments are not automatic, but can be authorised on an individual basis, on application to the tax authorities, for both resident and non-resident sellers.

Issues related to the sale

  • Transfer tax (ITP 6.5%) – paid by the buyer
  • IGIC (7%) on new property – also paid by the buyer

Issues related to the sale

It ensures that the property is legally clean, unencumbered and the entire sale process is secure.

It is particularly recommended if you are dealing with a foreign buyer.