Buying Property in Tenerife: Step-by-Step Guide for Foreign Buyers

Buying Property in Tenerife: Step-by-Step Guide for Foreign Buyers

Welcome to Tenerife! If you’re a non-resident dreaming of a home in the sun, Luxury World Properties is here to guide you. Our 26 years of expertise in South Tenerife’s real estate market means we have the knowledge and multilingual team to make your purchase smooth and stress-free. From browsing our website (luxurywp.com) to signing the final deed, we’ll be with you every step of the way. In fact, your journey often begins online – exploring listings on our site and contacting our team assistant Sabrina or one of our friendly agents for more details. Sabrina is your dedicated point of contact to answer initial questions and connect you with the right property specialist. We speak English, Spanish, Italian, French, Russian, Dutch, German and more, so you’ll feel at home from the first “Hola!”
In this comprehensive guide, we outline every step of buying a property in Tenerife as a foreign buyer. We cover everything from selecting a property and paying a reservation fee, to obtaining your NIE number, signing contracts, and understanding taxes. Whether you’re from the EU or outside, looking for a holiday apartment or an investment villa, this step-by-step roadmap will clarify the process. Let’s turn your dream home in Tenerife into reality – together!

1. Finding Your Dream Property in Tenerife

The first step is finding a property that fits your needs and budget. Luxury World Properties makes this easy:

• Browse our Listings: Start on our website (luxurywp.com) to see high-quality listings of apartments, villas, and homes across South Tenerife. You can filter by location, price, size, etc., and view photos, descriptions, and even virtual tours. Take your time to explore neighbourhoods like Costa Adeje, Los Cristianos, or La Caleta – each has its own charm.

• Ask Questions: When a property catches your eye, reach out for more information. Contact the responsible agent or our team assistant Sabrina directly via phone, email, or WhatsApp. We’re happy to provide additional details, answer questions about the area, or arrange an appointment. Our team is multilingual and knowledgeable, so you can communicate comfortably in English or your preferred language.

• Property Viewings: We’ll schedule property viewings at your convenience. If you’re in Tenerife, we organize in-person visits so you can walk through the home and get a feel for it. If you’re abroad and can’t travel yet, no problem – we offer video call tours. Using live video, our agent can show you the property remotely, highlighting features and answering your questions in real time. This way, you can virtually step inside your future home from wherever you are.

• Local Insights: During viewings (physical or virtual), we’ll share insights about the property and its surroundings. We’ll inform you about nearby amenities, monthly community fees (for apartments in complexes), expected utility costs, and any other nuances. Our agents are long-time Tenerife experts – consider them your local guides. We can even tour the neighbourhood with you so you understand distances to the beach, schools, shopping, healthcare, etc. The goal is to ensure you have a complete picture of the property’s value and lifestyle before moving forward.

Tip: It’s wise to clarify your budget and criteria early on. Remember to account for about 8–10% extra costs on top of the property price (for taxes and fees – detailed later). Knowing this will help you set a realistic price range during your search.

By the end of this stage, you’ll hopefully find “the one” – a Tenerife property you love and want to call your own. Once that happens, it’s time to move on to securing it with a reservation.

2. Making an Offer and Paying a Reservation Fee

When you’ve found the right property, the next step is to make an offer and secure it with a reservation fee. This process takes the property off the market and sets the basic terms while the purchase moves forward:

• Formal Offer: Our agent will help you formulate a written offer to the seller (usually via a short document or email). The offer states the price you’re proposing and any key conditions (for example, “contingent on obtaining a mortgage” if relevant). In Tenerife’s market, it’s common to negotiate, so the seller might accept, reject, or counter your offer. We will advise you on a fair offer strategy based on market data so you don’t overpay, but also remain competitive for desirable properties.

• Reservation Agreement & Fee: Once your offer is accepted by the seller in writing, you will typically sign a reservation agreement (Contrato de Reserva) and pay a reservation fee. This fee is a small deposit (often around €5,000 to €10,000, depending on property price – or sometimes roughly 1-2% of the price) that shows your good faith and commitment. The reservation agreement briefly outlines the agreed price and basic terms, and crucially, it takes the property off the market for a specified period (usually a few weeks). During this time, the seller agrees not to sell to anyone else while you proceed with the next steps. The reservation fee is usually held by the agency or paid to the seller’s solicitor and later put toward your purchase.

• Receipt and Conditions: We will provide a receipt for your reservation payment and make sure both parties sign the reservation document. It will include a timeline for signing the more detailed private purchase contract (the Arras contract, typically within 1–4 weeks). If the seller were to back out at this stage without justified reason, the agreement usually stipulates they must return your deposit. If you decide not to proceed, the fee might be non-refundable – so only reserve when you’re serious. (However, if any legal issues are discovered in due diligence, we’ll handle those per the agreement terms.)

• Initial Due Diligence: After reserving, the due diligence process begins (more on this in Step 5). This means checking that the property’s legal status is all in order. Often, the reservation period is used to perform these checks before you sign the next contract. Important: We strongly advise not to skip due diligence even if you pay a reservation. Don’t worry – Luxury World Properties will assist and, if you have one, your lawyer will thoroughly verify everything about the property.

• If the Offer Isn’t Accepted: In case the seller rejects your offer or you can’t reach an agreement on price, any reservation deposit you gave is returned to you. You can then continue searching without loss. Sometimes a bit of negotiation bridges the gap – our agents are skilled negotiators and will strive to find a win-win. The Tenerife market can be competitive, so we’ll keep you informed at every turn.

By paying the reservation fee, you demonstrate commitment and effectively lock in the property for you (subject to contract). Now it’s time to take care of the legal and administrative steps that pave the way to the purchase contract and ultimately the deed.

3. Get Your NIE (Foreigner Identification Number)

One of the first administrative hurdles for any foreign buyer in Spain is obtaining an NIE (“Número de Identidad de Extranjero”). The NIE is a tax identification number for foreigners – essentially, an ID number that you need for almost all official transactions in Spain, including buying property. All foreign buyers (EU or non-EU) must have an NIE before they can complete a property purchaselucasfox.com. Here’s what you need to know:

• Why NIE is Important: The notary will require your NIE to include it in the property deed. You also need an NIE to open a Spanish bank account, to pay taxes on the purchase, and to set up utilities or other services. It does not mean you become a resident; it’s simply an identification number (format: an X or Y letter, followed by 7 digits and another letter). Think of it as a tax number. Without an NIE, you cannot officially buy property in Spain – so this is a critical step to tackle early.

• When to Get It: We recommend you apply for an NIE as soon as you decide to purchase in Spain – ideally during the reservation period or even before. The process can take from a few days up to a few weeks depending on appointments and workload, so it’s wise to get it sorted in advance to avoid delayslucasfox.com. You must have the NIE ready by the time of signing the final deed (Step 7). Many buyers obtain it while their lawyer is doing due diligence or while waiting to sign the Arras contract.


• How to Obtain NIE: You can get an NIE either in Spain or from abroad:

 - In Spain: Make an appointment at the National Police station or Foreigner’s Office (Oficina de Extranjería) in the province where you’re buying (for Tenerife, this is usually the Santa Cruz de Tenerife office or designated police stations). You’ll fill out the EX-15 form, bring your passport and copies, a passport-size photo, and pay a small fee at a bank (around €10). The office will issue your NIE certificate, often on the same day or within a few days.

- From Abroad: If you can’t come to Spain yet, you can apply at a Spanish Consulate in your home country. Alternatively, you can authorize someone (for example, your lawyer) with a Power of Attorney (POA) to obtain your NIE on your behalflucasfox.com. Many of our buyers choose the POA route so that their attorney handles the NIE while they are preparing other things.

- Note: Each person buying the property needs their own NIE. If a couple is buying jointly, both must have an NIE.


• NIE Certificate: The NIE itself is just a number, but you will receive it on a paper certificate (or sometimes a sticker in your passport at a consulate). Keep this document safe, as you’ll need to show it when opening bank accounts or at the notary. Once issued, the NIE number is yours for life – it doesn’t expire. (However, non-resident certificates for banking need periodic renewal, which we’ll mention in the next step.)

Luxury World Properties will guide you through the NIE process by providing the necessary information and even helping you set up appointments. We also work with reliable legal advisors who can obtain your NIE for you via power of attorney if you prefer. Bottom line: Don’t let the NIE requirement intimidate you – it’s a routine step for foreign buyers, and we ensure it’s handled efficiently so you can move forward with your purchase.

4. Opening a Spanish Bank Account

While not legally required to simply purchase a property, having a Spanish bank account is practically essential for foreign buyers. You will use it to pay the various purchase expenses (taxes, notary fees, etc.), and it’s very useful (even mandatory in some cases) for ongoing costs like utilities and community fees after you own the propertypeaceofmindmadrid.com.

Also, if you’re getting a Spanish mortgage, you’ll definitely need a local account. Here’s how to go about it:

• Why You Need a Spanish Account: Transferring large sums from a foreign account can be cumbersome or incur delays; a Spanish account streamlines the payment of the purchase price on closing day. More importantly, all local bills (electricity, water, telephone, community charges, property taxes) are typically paid by direct debit from a Spanish bank. Many providers will not accept foreign IBANs for direct debit. Opening a local account ensures you can easily manage these recurring payments. It also helps you avoid currency exchange issues by holding money in euros for the purchase.

• Can Non-Residents Open an Account? Yes – Spanish banks offer non-resident bank accounts. The process is straightforward. You generally must open the account in person at a bank branchluxurywp.com. (Some banks advertise online account setup, but as a non-resident you’ll eventually need to show original documents in person.) If you’re not yet in Spain, we’ll coordinate to schedule a bank meeting when you visit for viewings or for signing contracts. We can also recommend banks experienced with international clients.


• Documents Needed: To open a non-resident account, you will typically need:

- NIE certificate – proof of your NIE numberluxurywp.com.
- Passport (or national ID for EU citizens)luxurywp.com.
- Proof of address in your home country (e.g., a utility bill or bank statement).
- Proof of employment or income – e.g., a payslip, tax return, or bank reference letter. Some banks request your latest tax return or a certificate of non-residency for tax purposesluxurywp.com, to comply with anti-money laundering rules.
- Non-Resident Certificate: Spanish banks are required to verify your non-resident status. You might be asked to provide a “Certificado de No Residente” (non-residency certificate), which you obtain from a Spanish police station or consulate. Often, however, the bank will handle this for you – they can request this certificate directly from the authorities (it’s basically a document confirming you are not on the Spanish residents register). This certificate must be renewed every 2 years if you remain non-residentluxurywp.com, but the bank usually manages the renewal or will ask you for updates.

Don’t worry, we will help clarify the exact requirements of the bank you choose. Different banks have slightly different procedures, but the above list is a good guideline.


• Choosing a Bank: Tenerife has branches of all major Spanish banks (Santander, BBVA, CaixaBank, Sabadell, etc.) as well as local and international banks. We have partnerships with reputable banks and can suggest an English-speaking bank manager to assist you. Most banks offer similar services: Euro current accounts with online banking (often in English interface), debit/credit cards, and the ability to set up automatic bill payments. Some banks have specific “expat accounts” with multilingual support. We’ll help you find a convenient branch (there are many in the south – Los Cristianos, Adeje, etc.).

• Initial Deposit and Fees: Opening a bank account in Spain is usually free; there might be a small opening deposit required (often a few hundred euros is enough)luxurywp.com. Non-resident accounts sometimes have quarterly maintenance fees, but many banks waive fees if you maintain a minimum balance or use the account for a mortgage. We will guide you through the bank’s terms so there are no surprises. Keep in mind that if you bring cash into Spain above €10,000, you must declare it at customs. However, most clients simply transfer funds electronically from abroad.

By setting up your Spanish bank account early, you ensure that when it’s time to pay the reservation fee, deposit, and final amount, everything can happen swiftly. It also positions you to seamlessly handle all post-purchase payments. Luxury World Properties and our partners will assist you in every step of opening the account – including accompanying you to the bank if you wish, and making sure you understand the paperwork. Soon, you’ll have online banking set up and one more item checked off the list!

5. Should You Hire a Lawyer? (Legal Assistance)

Is a lawyer required to buy property in Spain? Technically no – the law doesn’t mandate using a lawyer. However, hiring an independent lawyer is highly recommended for foreign buyers (and most locals use one too). Purchasing property is a significant investment, and a lawyer provides peace of mind by safeguarding your interests throughout the processlucasfox.com. Here’s why you should strongly consider engaging a lawyer (also called a solicitor):

• Due Diligence & Legal Checks: Your lawyer will perform thorough due diligence on the property’s legal status (see next section for details). They obtain and review documents like the Land Registry report, community statutes, and more, to ensure there are no hidden surprises. While notaries in Spain are responsible for certifying the deed, they are neutral and do not advocate for the buyer or sellerluxurywp.com. The notary ensures the transaction is legal, but does not protect your personal interests or verify things like unpaid bills. Your lawyer, on the other hand, works for you and will check everything: that the seller is the true owner, the property has no debts or encumbrances, all building permissions are in order, etc. This independent verification is invaluable, especially if you’re not familiar with Spanish real estate law.

• Contract Review & Advice: There are a few contracts to sign in a property purchase – the reservation agreement, the Arras (deposit) contract, possibly a mortgage offer, and finally the public deed. All these documents are likely to be in Spanish (the official language for contracts). A lawyer will review or draft contracts on your behalf, explain them to you in your language, and negotiate any needed changes. For example, your lawyer can add clauses to an arras contract to protect you (such as making the purchase conditional on getting a mortgage or on a clean due diligence outcome). They ensure the terms are fair and legal. If you don’t speak Spanish, having a bilingual lawyer is crucial so you fully understand what you’re signing.

• No Conflict of Interest: We at Luxury World Properties always aim for transparent, fair transactions, but it’s still wise to have a separate lawyer who is not involved in the sale commercially. Unlike some countries, in Spain the buyer’s and seller’s interests can differ (e.g., regarding timing or what’s included in the sale). Your lawyer will represent only your interests, giving you impartial advice. This is especially important if the seller does not have their own lawyer (sometimes developers or individuals don’t), or if there’s any aspect to negotiate (like repair works, furniture included, etc.).

• Handling Bureaucracy: There is paperwork galore in any property deal. Lawyers take care of many administrative tasks: obtaining NIE on your behalf, checking the cadastral registry, liaising with the notary to prepare the deed, coordinating with banks (yours and the seller’s, if a mortgage cancellation is needed), and calculating the taxes due. After purchase, a good lawyer (or an associated gestor) will also handle registering the property in your name and paying the transfer taxes on your behalf. Essentially, they project-manage the legal process, which is a relief if you’re abroad or unfamiliar with Spanish bureaucracy.

• Power of Attorney Option: If you cannot be in Tenerife for some step (for example, to sign the arras contract or even the final deed), your lawyer can act on your behalf through a Power of Attorney. This means you could, in theory, buy the property from afar – the lawyer would sign documents for you and even finish completion without you present (many investors use this option). Knowing you have this flexibility is reassuring if travel schedules are a challenge.

• Cost of a Lawyer: Hiring a lawyer does add a cost, but it’s relatively small compared to your investment. Legal fees typically range around 1% of the purchase price plus VAT (it can be a flat fee or a percentage depending on the firm and property price). For example, on a €300,000 property, legal fees might be about €3,000–€4,000. This fee often covers the entire conveyancing process and sometimes includes post-sale work like changing utilities into your name. It’s a worthwhile investment to ensure a safe transaction and avoid costly mistakes or future legal issues.

In summary, using a lawyer is optional but highly advisablelucasfox.com. Luxury World Properties can recommend reputable, English-speaking property lawyers in Tenerife who have helped many of our clients. We only recommend independent lawyers who are experienced in Spanish real estate and who carry liability insurance for your protection. Of course, you are free to choose any solicitor you trust. Our team will gladly coordinate with your chosen lawyer and provide them any property documents they need. With a professional lawyer on board, you can proceed with confidence knowing all legal details are handled diligently.

6. Due Diligence: Checking the Property’s Legal Status

Before you sign a binding purchase contract, due diligence must be done on the property. This is typically carried out by your lawyer (if you have one) in collaboration with us as your agents. We call this “checking under the hood” – verifying that the dream home you’ve reserved is 100% clear and correct to buy. Here are the key due diligence checks for a property in Tenerife:

• Land Registry (Registro de la Propiedad): The lawyer will obtain a “Nota Simple” – an extract from the Land Registry for the propertypeaceofmindmadrid.com. This official report confirms:

- Ownership: who the registered owner is (it should match your seller’s name).
- Description: the size of the property, its boundaries, and whether it has any annexes like parking or storage registered.
- Charges or Liens: any debts, mortgages, or encumbrances on the property. For example, if there is an outstanding mortgage, it will be noted (with amount). If there’s a lien due to unpaid taxes or a court claim, that also shows up.
- Restrictions: any easements or limitations (perhaps a public path across land, etc.).

We ensure the property is free of unexpected liens. If a mortgage exists, the contract will stipulate it’s cancelled by the seller at or before the notary signing (often handled by paying off from the sale funds). No sale can proceed until all registered charges are dealt with. The nota simple is our primary “Title Check” document, and it is carefully reviewedpeaceofmindmadrid.com.


• Community of Owners Debts: If the property is part of a community (community of owners) – e.g., an apartment in a complex or a house in a gated community – we need to verify the seller is up-to-date on community fees. The seller should provide a community debt certificate (certificado de deuda de la comunidad) from the community administrator, stating any unpaid fees. By law, any unpaid community fees from the current and previous year can become the responsibility of the new owner if not settled, so this is important. We’ll also check if the community has agreed on any big upcoming expenses (called derramas, special assessments) that could impose extra costspeaceofmindmadrid.com. Reviewing recent meeting minutes of the community is a good practice to see if, say, they plan to install new elevators or renovate the pool (which could mean a future charge). Our team often already knows the communities and can flag any issues. Your lawyer will ensure any debt is resolved by the seller at closing (and put that in the contract).

• Utility Bills and Taxes: The seller should provide proof that all utility bills (electric, water, etc.) are paid up to date. Also, we check the latest receipt of the IBI tax (Impuesto sobre Bienes Inmuebles) – that’s the annual local property tax – to ensure it’s paid for the year. Generally, any unpaid IBI or local rates stay attached to the property (the new owner could be held liable), so those must be cleared. Additionally, in Spain there is a seller’s tax called plusvalía municipal (municipal added value tax) on the increase of land value; this is by law the seller’s responsibility. Your lawyer will calculate it and ensure the seller pays it after the sale (unless negotiated otherwise). We will also verify there are no outstanding garbage fees or other local taxes due on the property.

• Building Legality and Licenses: Especially for houses or villas, it’s vital to confirm that the property was built with all necessary permissions and that what is on-site matches what is on the official records. We may check the municipal building file for any infractions or fines. If the property has had reforms or extensions, did they have a license? Usually we also require the seller to provide an occupancy permit or habitability certificate (Cédula de Habitabilidad, if applicable in Canary Islands) and definitely an Energy Performance Certificate (Certificado de Eficiencia Energética). Spanish law requires an energy certificate be available when a property is sold – it rates the property’s energy efficiency. Your lawyer will ensure the seller hands this over. If you’re buying a rural property or a plot, additional checks on zoning and permitted uses would be done.


• Encumbrances and Other Checks: Depending on the case, there may be other things to verify:

- If the seller is a company, that the person signing has authority and the company is in good standing.
- If the property is rented out, ensure it will be delivered vacant (unless you’re buying with tenant).
- If it’s a new development, confirm the developer has insurance guarantees, building completion certificate, etc.

We’ll also confirm the cadastre (land survey) details match the reality, and that the property’s cadastral value (for tax) is known.

In summary, due diligence is all about ensuring you get exactly what you’re paying for, with no strings attached. If any issues are uncovered, we will discuss how to resolve them. Minor issues (like a small outstanding bill) can be solved by the seller paying it before completion. Big issues (like an unexpected lien or a significant legal irregularity) could trigger a renegotiation or even allow you to withdraw if not rectified. Fortunately, the vast majority of transactions are straightforward, especially when dealing with established developments in Tenerife. Luxury World Properties and your lawyer coordinate closely during this phase. We collect documents from the seller, the community administration, and public records on your behalf. By the end of due diligence, you should have full confidence that the property is clean and ready to purchase.

Once all checks are satisfactory, we move forward to signing the private purchase contract and paying the purchase deposit.

7. Signing the Private Purchase Contract (Contrato de Arras)

With due diligence complete, the next milestone is signing the private purchase contract, commonly known as the “Contrato de Arras” in Spain. This is a crucial agreement where both buyer and seller commit formally to the sale, and the buyer pays a significant deposit (usually 10% of the price). Here’s what happens at this stage:

• Purpose of the Arras Contract: The contrato de arras is a private contract between you and the seller laying out all details of the salepeaceofmindmadrid.com. It will include:
Identities of Buyer and Seller: including your NIE and the seller’s DNI/NIE.

Property Details: the address, Land Registry info, and a description of the property being sold (including any included parking space, storage room, etc.).
Purchase Price: the total agreed price for the property.

Payment Structure: confirmation of the reservation amount already paid and the balance of the deposit to be paid now, plus the remaining amount to be paid at notary. For example, if the price is €250,000 and you paid €5,000 at reservation, the contract will say you pay €20,000 now (to make a 10% total deposit of €25,000) and the remaining €225,000 at completion.

Deadlines: the agreed latest date for the final completion at the notary (Escritura). Typically this can be 1 to 3 months from signing the arras, but it depends on circumstances (shorter if both parties are ready, or longer if a mortgage or paperwork needs time).

Special Conditions: any conditions agreed, such as “subject to mortgage approval by X date” or “property will be painted before completion” or an inventory of furniture included, etc. If any issues were found in due diligence that the seller must resolve (e.g., cancel a mortgage or get a missing document), that can be stipulated too.

Both parties sign this contract, usually at the agency’s office or the lawyer’s office. If you cannot be present, you can sign digitally or your power of attorney can sign for you.


• Paying the Deposit (10%): Upon signing the arras contract, you will pay the agreed down payment to the seller (or to their representative). This is typically 10% of the purchase price (minus any reservation fee already paid)peaceofmindmadrid.com. The contract will state the exact amount. This payment is often made by bank transfer or banker’s draft. Commonly, foreign buyers transfer the deposit to their Spanish account and then transfer to the seller’s account (or sometimes a lawyer’s client account) on the contract date. In some cases, it can be done via credit card or cash if small, but usually it’s a bank transaction for traceability. Luxury World Properties will coordinate with you on the logistics so that the deposit funds arrive on time. Once this deposit is paid, you have made a significant commitment.


• Penalty Clause (Arras Penitenciales): Spanish arras contracts almost always include the standard penalty clause from Article 1454 of the Civil Code, known as arras penitencialespeaceofmindmadrid.com. This clause states:

- If you, the buyer back out of the sale after signing, without cause, you forfeit your deposit. The seller keeps the 10% deposit as compensation.
- If the seller backs out (decides not to sell, or cannot fulfill obligations), they must return double the deposit to you as compensation.

This clause essentially “seals” the deal – it gives both sides a strong incentive to complete. It’s important to be absolutely sure at this point that you want to proceed, as walking away means losing a significant sum. Likewise, the seller will think twice about backing out since they’d owe you double your deposit. In practice, neither side wants to trigger the penalties; the clause just provides security. The contract can specify exceptions (for instance, if it’s conditional on your mortgage and the mortgage is denied, the deposit might be returned – such details must be written in to be enforceable).


• From Reservation to Arras: Note that the reservation agreement from step 2 was a lighter promise. The arras contract now supersedes it with full terms. If you paid a reservation fee to the agency, typically that amount is transferred to the seller and counted toward your 10% deposit. For example, the agency might now forward your €5,000 to the seller and you add the remaining €20,000 to make 10%. The property has already been off-market; now the seller is firmly bound to sell to you under these terms.

• Next Steps Planning: After signing arras, all that’s left is preparing for the final completion. If you’re taking out a mortgage, you will finalize it in this period (the bank will issue a mortgage offer, do an appraisal of the property, and get documents ready for notary). If any outstanding issues remain (like awaiting an updated certificate or the cancellation of a previous mortgage), those are handled now. Typically, the period between arras and notary is used to gather final documents, get mortgage funds in place (if needed), and let the notary prepare the draft deed. We will schedule the notary appointment on a date that suits both parties before the deadline.

By completing the private purchase contract and paying the deposit, you are now contractually obligated to buy, and the seller is obligated to sell, under the agreed conditions. This is a major milestone – congratulations! The final step will be to execute the public deed at the notary and officially transfer the property to your name.

8. Final Signing at the Notary (Escritura Pública)

The culmination of your property purchase journey in Tenerife is the signing of the public deed of sale (“Escritura de Compraventa”) in front of a notary. This is often simply called “completion” or “closing”. It’s an exciting day – this is when you become the official owner of the property! Here’s what to expect and prepare for the notary signing:

• Role of the Notary: In Spain, a notary (notario) is a public official who formally witnesses and validates property transactionspeaceofmindmadrid.com. The notary is an impartial party – they don’t represent buyer or seller, but rather ensure the transaction meets all legal requirements. They will draft the public deed (escritura) based on the private contract terms, verify the identities of everyone, ensure payment has been made, and then authorize the deed with their signature and seal. Only once the notary signs is the sale legally effective and registrable.

• Choosing the Notary: As a buyer, you actually have the right to choose the notary (though it’s often mutual agreement or simply picked for convenience). Luxury World Properties can recommend a local notary office that is efficient and accustomed to international clients. In South Tenerife, there are notary offices in areas like Playa de las Américas, Los Cristianos, and Adeje. We usually select one near to the property or our offices. The difference between notaries is minor (fees are government-regulated), but some notaries speak multiple languages or have more availability. We coordinate the appointment scheduling for you.


• Who Attends: On the day, the buyer and seller (or their representatives) meet at the notary’s office. If you’ve given power of attorney to someone (e.g. your lawyer), they can attend and sign for you, though you’re welcome to attend even if you have a representative. If you do not speak Spanish, it’s important to have an interpreter present or have the notary who speaks English. Some notaries in tourist areas can explain in English, but officially the deed will be in Spanish. Luxury World Properties always ensures an interpreter or bilingual lawyer is present so you understand everything. Also present will be:

- The notary and their staff.
 Your lawyer (if you have one, even with POA they often attend to oversee).
- Seller’s lawyer or representative (if they have one).
- If the seller has an existing mortgage, a bank representative from the seller’s bank might attend to receive the payoff and sign mortgage cancellation.
- If you are taking a new mortgage loan, a representative from your bank will attend for you to sign the loan deeds just before the sale deed.
Essentially, it can be a roomful, but typically it’s just a few people and the notary.


• What to Bring: Make sure to bring:
- Your passport or ID (the notary will check identification).
- Your NIE certificate.
- Proof of having transferred the funds (though usually the payment is by checks handed over at signing, see next).
- Any remaining documents requested (sometimes proof of insurance if you have a mortgage, etc.).
- Also, bring the keys if you’re the seller – in your case as buyer, you’ll be receiving keys!


• Final Payments: Right before or during the signing, you will hand over the payment of the remaining purchase price to the seller. In Spain, the common method is by banker’s cheque (bank draft) issued by a Spanish bank for the exact amounts. For instance, you will have prepared:

- A cheque for the seller for the net amount they are to receive.
- If the seller had a mortgage, sometimes a separate cheque directly to their bank for the outstanding loan amountpeaceofmindmadrid.com (so that the loan can be canceled). The notary may list these cheques in the deed for clarity.
- If you are using a mortgage to buy, your bank will typically provide these cheques or transfers at the notary signing.

In some cases, payment can be done via an electronic transfer (especially between two Spanish banks) at the time of signing, but notaries prefer the certainty of a bankers’ draft. We will have planned the payment method with you in advance to ensure the seller is satisfied and funds are readily available.

The notary will ask both parties to confirm that payment has been made and received as stated.*


• Notary’s Checks: Before signing, the notary will have:

- Pulled an updated Land Registry extract that very day or even minutes before signing, to ensure no new charges or issues appeared since due diligencepeaceofmindmadrid.com. This guards against any last-minute surprises (for example, if early that morning someone tried to put a lien on the property, the notary will catch it).
- Verified the property tax (IBI) receipt and community debt certificate, etc. They often ask the seller to state they are paid up on those.
- Verified that any needed certificates (energy cert, etc.) are provided.

- If you are non-EU, sometimes they check your visa status to ensure you’re in Spain legally for the signing (minor point, but usually not an issue for a short signing visit).
- The notary also calculates the withholding tax if the seller is a non-resident. By Spanish law, if the seller is not tax-resident in Spain, the buyer withholds 3% of the price and will pay it to the tax office on the seller’s behalf as an advance of capital gains tax. If applicable, this will be reflected: e.g., if price is €200k, instead of paying full €200k to seller, you give 3% (€6k) to Spanish Tax Agency and €194k to seller. Your lawyer/agent will handle this filing after closing. The notary just ensures it’s mentioned to protect you from seller’s tax liabilities.


• Signing the Deed: The notary (or an interpreter) will read aloud a summary of the deed (“Escritura”) – which is the official document of sale. It will include all the info from the contract, updated if needed. Both you and the seller (or representatives) will sign the deed, and then the notary signs and affixes their seal. Congratulations – at that moment, title to the property transfers to you! You are now the owner.

• Keys Handover: After signing, the seller will hand over the keys to the property (and any remote controls, entry fobs, etc.). If you cannot attend, we’ll ensure arrangements so you get the keys (sometimes kept at our office for you, or your lawyer holds them until you’re back).

• Immediate Aftermath: The notary will give you a “Copia Simple” – a simple copy of the deed (basically a photocopy with a notary’s stamp) on the spot so you have something in hand. The full official deed (with all the annexes) will be issued a bit later, once it’s signed into the notary’s protocol books and then sent to the Land Registry.

• Registration and Tax Filing: Right after the sale, the notary’s office electronically notifies the Land Registry and the Tax Authority that the sale took placepeaceofmindmadrid.com. This prevents any unscrupulous attempts to, say, resell the property or attach new debts after you’ve bought it. Your lawyer or gestor will then take the lead on formally registering your title and paying the required taxes (explained in the next section).

The notary signing can feel a bit formal, but rest assured, Luxury World Properties will be right there with you, ensuring everything is in order. We often attend the signing alongside you and your lawyer to support and translate as needed. We’ll also typically do a final walkthrough or inspection of the property right before closing (especially if it’s been a while since viewing) to confirm it’s in agreed condition. Once the deed is signed and keys are in hand, you can congratulate yourself – you’ve successfully bought a property in Tenerife! But there are still a few post-signing tasks: taxes, registration, and getting set up in your new home.

9. Property Registration and Taxes after Purchase

After the notary, there’s an important post-completion phase: paying the purchase taxes and registering your ownership in the Land Registry. These steps formalize your rights and ensure all legal obligations to the state are fulfilled. Typically, your lawyer or a professional gestor (administrative agent) will handle most of this, but let’s break down what happens:
Taxes on Property Purchases: Spain imposes certain taxes when a property changes hands. The exact taxes depend on whether the property is new (first transfer) or resale (second-hand), and also on the region (autonomous community). In the Canary Islands (including Tenerife), the tax structure is a bit special. Here’s what you’ll pay:

- Transfer Tax (ITP – Impuesto de Transmisiones Patrimoniales): This tax applies to resale (pre-owned) properties. In Tenerife, the general ITP rate is 6.5% of the purchase priceidealista.com. This is actually slightly lower than in many parts of mainland Spain (where ITP can be 8–10%). So, for example, if you bought a previously owned apartment for €200,000, the ITP would be €13,000. There are some reduced rates for special cases (first-time buyers, large families, etc., not usually applicable to non-residents unless meeting criteria). If your property is second-hand, ITP is the main tax you budget for. The buyer is responsible for paying ITP. It’s due within about 30 working days after signing the deed. Your lawyer/gestor will prepare the tax form and payment – usually this can be done online through the Canary tax authority and paid from your Spanish bank account.

- IGIC (Canary VAT) and Stamp Duty (AJD): If you are buying a new property (never been sold before, direct from a developer), ITP is not applicable. Instead, new properties incur IGIC and AJD:

- IGIC (Impuesto General Indirecto Canario): This is the Canary Islands’ equivalent of VAT. The rate on new housing is 7%idealista.com, notably lower than the 10% VAT (IVA) in mainland Spain. For instance, a new-build villa of €300,000 would have €21,000 IGIC (versus €30,000 if it were IVA elsewhere).

- AJD (Actos Jurídicos Documentados): Also known as Stamp Duty or “Documented Legal Acts” tax. In Canary Islands, the rate for property purchases is around 1.0% of the priceidealista.comidealista.com. (In some other regions it ranges 0.5%–1.5%, but Canaries is set at 0.75%–1%; currently ~1% for most cases in Tenerife). This tax is applied on the notarized purchase deed (and also on any mortgage deed).

So, for a new property, you’d pay 7% IGIC + ~1% AJD. The timeline and responsibility are the same – due within about 30 days, paid by the buyer.

Luxury World Properties or your lawyer will inform you if your purchase falls in this category (most standard purchases from another individual are resale with ITP).

- Notary and Registry Fees: In addition to taxes, there are notary and land registry fees to pay for the services of executing and registering the deed. These fees are fixed by law based on the property price and deed length (number of pages, etc.), so they are fairly standard:

- Notary Fee: Often ranges from around €600 to €1,200 for typical home pricesidealista.com. On a €250k–€300k property, expect roughly €800–€900. Higher-priced properties have higher fees but usually capped in a bracket.

Land Registry Fee: Usually a bit lower than notary, roughly €400 to €800 in many casesidealista.com. Again depending on price; maybe ~€500 for mid-range property.

These combined might be about 0.5% of the purchase price give or takeidealista.comidealista.com. Your lawyer typically advances these payments to the notary and registry, then gives you a breakdown in the final invoice. (Sometimes they’re paid a few weeks later when registry is done, but be prepared for that cost.)

- Gestor Fee: If a gestoría (administrative agent) is used to handle the filing (common when a mortgage is involved, the bank’s gestor does it), there’s a fee of a few hundred eurosidealista.com, often ~€300. Many lawyers include basic post-closing processing in their fee, but if a bank gestor is used, that’s an additional service.

- Registration of Title: After paying the taxes, the next step is to register the property in your name:

Your representative will submit the notarized deed (with proof that taxes have been paid) to the Land Registry. The Land Registrar will then officially record you as the new owner. This can take a few weeks to a couple of months to complete, depending on the office backlog.

Once completed, you or your lawyer will receive the Registro certificate or a nota simple updated showing you as the owner. Eventually, you will also get the original deed with the Registry’s annotation on it (often the notary will notify when it’s ready to pick up, or your lawyer collects it).

This step is crucial: until it’s registered, you have a signed deed but the public record isn’t updated. Spanish law protects the one who registers first, so prompt registration is important – though thanks to the notary’s immediate notification, you’re provisionally protected from that signing moment.


Other Post-Sale Admin:

The plusvalía municipal tax (municipal capital gains) – this is a tax on land value increase that the seller pays to the local town hall. Although as a buyer you don’t pay it, note that the notary might have had you sign an acknowledgment of who pays it. Ensure the seller or their agent handles it. In case the seller is non-resident, sometimes this 3% withholding you did covers it partially. Your lawyer will advise but it’s mainly on the seller’s side.

If you withheld the 3% for seller’s capital gains (when seller is non-resident), your lawyer will file that with the tax office within 1 month of sale. You just provide the funds (which came from the purchase price). This doesn’t cost you extra money – it’s part of the price you would have paid seller, just diverted to the tax authority.

Change of ownership notifications: We will help ensure that the community administration, utility companies, and local tax office are informed of the change of ownership. The community of owners, for example, should update their records to send future fee bills to you. The Town Hall should update the IBI tax records to list you as the payer for next year (this often happens automatically via registry, but sometimes a manual notification is needed at the SUMA or local tax office). We guide you on these minor tasks.

As you can see, there are a few bureaucratic hoops even after you’ve popped the champagne for your new property. But don’t worry – Luxury World Properties coordinates with trusted lawyers and gestors to handle all these post-sale steps correctly. We want you to have a seamless experience, where even the paperwork you never see is taken care of. We’ll let you know when everything is finalized, and then you can rest easy knowing the home is 100% yours with every document in order.

10. After the Sale: Ongoing Costs and Services for Homeowners

Congratulations on your new Tenerife property! 🥂 Now that you’re an owner, it’s important to be aware of the ongoing responsibilities and how we can support you post-sale. Foreign buyers, especially non-residents, will have a few extra considerations once the purchase is done. Here’s a rundown of post-purchase costs and services:

• Annual Property Tax (IBI): Every property owner in Spain pays an annual local property tax called IBI (Impuesto sobre Bienes Inmuebles). The amount varies by municipality and is based on the cadastral value (valuación catastral) of your property (which is usually lower than market value). In Tenerife, IBI is generally a few hundred euros per year for apartments, and higher for large villas or plots. For example, you might pay €300–€800/year for an average home, but it could be more for luxury villas. IBI is billed by the Town Hall usually once a year (sometimes split into two). As a non-resident owner, you should set up direct debit from your Spanish bank to pay IBI, so you don’t miss it. We can assist you in arranging this with the local tax office. IBI goes towards local services (roads, garbage, etc.), and it’s important to pay it to avoid fines or a charge on your property.

• Community Fees: If your property is in a condominium or residence with shared amenities (pool, gardens, elevators), you’ll have community fees. These are normally paid monthly or quarterly to the community of owners association. The fees cover maintenance of common areas, cleaning, security, etc., and the amount was likely disclosed during purchase. Make sure the community administration has your contact and bank details. We often help our buyers contact the community office to update ownership and set up the direct debit for the fees. Keep in mind, community fees can range widely – maybe €50–€150 per month for an apartment, up to several hundred for high-end complexes with extensive facilities. If there are any special assessments (derramas) in future (for unexpected repairs or improvements), the community will vote and notify you. Staying engaged with your community (or having someone represent you in meetings) is advisable; we can also offer guidance on understanding community rules and meeting minutes.

• Utilities and Insurance: After purchase, we help ensure utilities (electricity, water, maybe gas, internet/phone) accounts are transferred to your name. Often the seller will have final meter readings done and then you, as new owner, will set up your own contracts. If you’re not residing full-time, it’s wise to keep electricity and water accounts active (not canceled) so that when you come for holidays you just flip the switch. We can point you to the utility companies’ local offices or websites – many have English support. Setting up automatic bill pay through your Spanish bank is the easiest way to handle utilities. Also, consider getting home insurance. While not mandatory by law (unless you have a mortgage, then the bank requires at least fire insurance), it’s strongly recommended to insure your property and contents. Insurance in Spain is reasonably priced. Luxury World Properties can refer you to reliable insurance brokers. Some insurers offer policies tailored to non-resident owners (including coverage for holiday rentals if you plan that). Insurance gives peace of mind against events like water leaks, break-ins, or natural damage.

• Non-Resident Income Tax (IRNR): Here’s an aspect often overlooked: if you are not a tax resident in Spain, you are still subject to a Spanish tax on property ownership known as Non-Resident Imputed Income Tax. Essentially, Spanish law assumes that if you own a holiday home, it provides you some notional “rental” benefit, so you should pay tax on that benefit (even if you don’t actually rent it out). Don’t worry, it’s usually a small amount. The tax is calculated as a percentage of the cadastral value of the property. Generally, the taxable base is 1.1% or 2% of cadastral value (depending on if the cadastral value has been recently revised). Then, you pay 19% on that base if you are an EU resident, or 24% if you are non-EUpeaceofmindmadrid.com. For example, suppose your apartment’s cadastral value is €100,000. 1.1% of that is €1,100. An EU citizen owner would pay 19% of €1,100 = about €209 per year. A non-EU owner would pay 24% = €264 per year. If you don’t rent out your property, this is the tax you pay each year. If you do rent it out, then you pay tax on the actual rental income instead (with EU owners able to deduct expenses, and non-EU not, taxed on gross rent at 24%)peaceofmindmadrid.com. These taxes are declared via a form (Model 210) once a year per owner. It’s highly advisable to have a tax advisor or gestor handle this filing. Luxury World Properties can connect you with English-speaking tax professionals who for a modest fee will file your non-resident taxes and ensure you stay compliant. It’s important to pay these to avoid any penalties or issues when you eventually sell.

• Golden Visa & Residency Help: Some foreign buyers are interested in obtaining Spanish residency after their purchase. Note that owning property itself does not grant you residency automatically (for EU citizens, you already have right to reside in Spain; for non-EU, you’d need a visa or residence permit to live here long-term). In the past, Spain had a Golden Visa program where non-EU investors spending €500,000 or more on property could get a residency visa. However, as of 2025, the Spanish government has ended the Golden Visa scheme for property investmentsecheverriaabogados.com. This means new applicants can no longer obtain residency solely by buying €500k+ of real estate. (The program was discontinued to curb housing price inflation). If you purchased before the change or submitted an application by early 2025, those visas are honored, but going forward this option is closed. What are your options now? For non-EU nationals who wish to live in Spain, there are other visas like the Non-Lucrative Residence Visa (for retirees or those with independent income who don’t need to work) or work visas if you establish a business or get employed. Owning a property can support these visa applications by showing accommodation, but is not a free pass. Luxury World Properties stays up-to-date on immigration developments and can refer you to qualified immigration lawyers to explore residency options. For EU citizens, the process is simpler: if you spend more than 3 months in Spain, you’d register as an EU resident (obtain an EU citizen residency certificate), which we can also guide you through. Just remember: property ownership doesn’t equal tax residency – you only become a tax resident if you live in Spain over 183 days/year or formally declare it. Some buyers keep non-resident status and just visit periodically; others relocate and become residents – we support you either way.

• Ongoing Support & Property Management: Our relationship doesn’t end at the sale – Luxury World Properties is here to assist you after you get the keys. We understand that as a foreign owner, you may need help managing or enjoying your property. Here are a few ways we continue to help:

If you plan to rent out your property (long-term to locals, or short-term to tourists), we can advise you on the procedures. For holiday rentals, you’ll need to obtain a tourist license from the Canary Government – we can walk you through the requirements and recommend partners to handle the application and management. We also offer rental services and can help market your property to vetted tenants or holidaymakers.

For maintenance or renovations, we have a network of trusted professionals (builders, plumbers, electricians, painters). Need to remodel the kitchen or just have someone keep the garden tidy? We can put you in touch with the right people. We can also facilitate access if work needs to be done while you’re abroad.

We can assist with setting up services like alarm/security systems, housekeeping, or pool maintenance. Many of our clients appreciate having a local point of contact to oversee their home when they’re away. We’re happy to be that link – whether it’s periodic check-ins on the property or arranging cleaning before you arrive for vacation.

Simply have questions about life in Tenerife? Looking for the best school for your kids, or how to buy a car, or get health insurance? Our team, being international themselves, can offer tips and connect you to community resources. We strive to make your transition to Tenerife (be it part-time or full-time) as smooth as possible.

Finally, we’d love for you to stay in touch. Many clients become friends – you’ll likely bump into us at local events or you can always drop by our office for a coffee and a chat. We also organize occasional client gatherings and send out newsletters about the Tenerife property market and community news.

EU vs Non-EU Buyers: Key Differences and FAQs

To wrap up, let’s clarify a few differences for EU and non-EU buyers and answer common questions:

- NIE and Bank Accounts (All Foreigners): Regardless of nationality, if you’re not a Spanish citizen, you need the NIE and a local bank for a smooth purchase (as discussed in Steps 3 and 4). This applies equally to EU citizens (e.g., from Germany or Sweden) and non-EU citizens (e.g., from UK, USA, etc.).

- EU Citizens: If you carry an EU/EEA passport, buying property in Spain has no restrictions – you have the same rights as a local. After buying, if you decide to live in Tenerife, EU citizens can register as residents easily (the process involves showing your private health insurance or work status and sufficient funds, then you get an EU certificate of residence and eventually a local ID card called TIE). Owning property isn’t required for EU residency (but it helps prove address). Tax-wise, EU residents currently enjoy a bit lower tax on rental income (19%) and can deduct expenses, whereas non-EU owners pay 24% on gross rentpeaceofmindmadrid.com. If you remain a non-resident and only visit, you pay the non-resident homeowner tax at 19% on the imputed base as mentioned.

- Non-EU Citizens: You face no barriers to purchasing property itself – Spain welcomes international buyers. However, immigration rules mean you can normally stay only 90 days in any 180-day period on a tourist visa. If you want to spend more than 3 months at a time in your Tenerife home, you’ll need to look into a residence visa (such as a non-lucrative visa, which lets you live in Spain if you have sufficient income/savings and don’t need to work locally). Many non-EU retirees use this option. If you plan to work or start a business here, you’d need a work permit or entrepreneur visa. It’s important to plan this if your goal is to move to Spain full-time. Unfortunately, the popular Golden Visa (property investment visa) has been discontinued in 2025echeverriaabogados.com, so investing €500k in property no longer grants automatic residency. (Those who already have Golden Visas can renew them under certain conditions, but new applications via property are closed.) We stay informed on any changes – it’s possible rules evolve, so do consult us or an immigration lawyer for the latest information on residency options.

- Tax Residency vs Property Ownership: Owning a property does not by itself make you a tax resident of Spain. You remain a tax resident of your home country unless/until you spend over 183 days a year in Spain or formally declare residency. If one day you do become a Spanish tax resident, note that your worldwide income and assets might become taxable in Spain (subject to double tax treaties and allowances). For instance, Spain has an annual wealth tax that affects high-net-worth individuals (with large property values) whether resident or not, but there are high exemptions (in Canary Islands, typically no wealth tax unless assets exceed €700,000+, and primary home value is largely exempt). Most average home buyers won’t hit that threshold, but it’s something to be aware of if you purchase luxury properties or multiple units. Tip: We can refer you to a tax advisor to structure things efficiently if needed.

- Financing Differences: If you need a mortgage, Spanish banks often lend up to 70% of the property value for non-resident buyers (and up to ~80% for residents)idealista.comidealista.com. The terms for non-residents might be slightly different (sometimes a bit higher interest or shorter tenure), but many of our foreign clients successfully obtain Spanish mortgages. We have banking contacts who can pre-assess your case.

- Cost Differences: Aside from the slight differences in taxes (as noted, Canary Islands’ 6.5% ITP and 7% IGIC are favorable compared to mainland ratesidealista.comidealista.com), all buyers face similar purchase costs. Non-residents do not pay more property tax or higher notary fees or anything – it’s the same. The only extra might be that 3% withholding on sale if you eventually sell while being a non-resident (that’s to ensure you pay any capital gains tax due, and you’d claim a refund if too much was withheld). That’s on the selling side though, not buying.

- Canary Islands Benefits: Buying in Tenerife as a foreigner also means you benefit from living (or vacationing) in an autonomous region with some special economic perks: slightly lower VAT (IGIC 7%), potentially lower cost of living in some respects, and a fabulous climate year-round. There are also specific incentives if you were to open a business here (like Zona Especial Canaria tax regime), but that’s beyond just buying a home. We point this out to highlight that Tenerife can be not only a lovely place but also financially savvy choice for investment.

In summary, whether you’re from an EU country or elsewhere, Tenerife offers a welcoming environment for property buyers. The main process of buying is the same for everyone, with NIE and a local bank needed. Post-purchase, staying compliant with any taxes and enjoying your property responsibly are key. Luxury World Properties and our partners are equipped to assist clients of all nationalities, and we tailor our advice to your specific situation.

In Conclusion: Buying a property in Tenerife as a foreigner might seem complex at first glance – but with the right guidance, it’s very achievable and rewarding. Luxury World Properties prides itself on being a knowledgeable, experienced, and client-focused agency. We will coordinate every step for you, from the moment you send an inquiry on our website, to handing you the keys and beyond. We collaborate with reliable lawyers, notaries, banks, and local authorities to ensure everything is done correctly and efficiently. Our goal is not just to sell you a house, but to welcome you into the Tenerife community with confidence and a smile.
We hope this step-by-step guide has demystified the process and answered your questions. Your dream home in the Canary Islands is waiting, and we are ready to help you make it yours. Please reach out to us – Sabrina and the entire Luxury World Properties team are here to assist you in English (or your preferred language), every step of the way.
Thank you for reading, and we look forward to helping you find your own piece of paradise in Tenerife! 🌴🏠☀️

References:

- Lucas Fox International Properties – “How to buy property in Spain as a foreigner: a step by step guide” (Dec 16, 2024)lucasfox.comlucasfox.com
- Peace of Mind Madrid – “Steps to Buying a Property in Spain for non-residents” (May 6, 2022)peaceofmindmadrid.compeaceofmindmadrid.com
- Luxury World Properties (luxurywp.com) – Sections: “The notary in Spain” and “Non-residents: Opening a bank account in Spain”luxurywp.comluxurywp.com
- Idealista News – “The costs and taxes associated with buying a home in Spain (2025)”idealista.comidealista.com
- Echeverría Abogados – “Golden Visa: Spain abolished its programme” (Breaking News, Apr 2025)echeverriaabogados.com
- Spanish Tax Agency / BOE – Information on Non-Resident Income Tax (IRNR) ratespeaceofmindmadrid.com (EU 19%, non-EU 24%) and regional Transfer Tax ratesidealista.com