The process of “buying property in Tenerife” is simple and straightforward.
1. The deposit and the contract
By selecting the appropriate object, our agency is committed to ensure legal clarity.
If the property does not have any charges and the seller is the legal owner of it, or has a power of Attorney from the owner with the right to sell, a contract is signed with a purchase option and proceeds to make a deposit of 3,000 to 5,000 Euros.
The same day, the agency will accompany the client, if desired, to a Spanish bank. To open an account. This procedure takes about 20 minutes, and initially only needs your passport.
Then, in the event that our client is resident in another country that is not Spain, he must apply for the NIE. (Document tax identification number).
The NIE is requested at the National Police offices and has a cost between 9 and 11 Euros. It is done in one morning and here, our Agency will accompany the entire process for free.
2. Deposit and Transfer of reserves.
Under the agreement, within a maximum period of two weeks after the signing of the contract of purchase and sale, when you’re back home, you will need to transfer the rest of the deposit to complete 10% of the agreed property price. Once the seller receives that amount in full, the client will have the reserve during the time stipulated in the contract.
During the term of your reservation, you must remit the funds remaining in your Spanish account . If you need a loan, during this time our agency will issue a mortgage on a Spanish bank.
3. Bill payments and final sales
Before the end of the booking period of the Agreement, you will need to return to Tenerife for the signature of the deed before a Spanish Notary and final payment to the seller. Final payments are made by check with the seller issued by the Spanish bank and simultaneously with the signing of the deed.
After the signing of the deed, you will have to pay taxes on the purchase, representing about 8% of the declared value. In the case of the processing of a loan, the bank takes an extra percent of the mortgage, increasing the amount of expenses of the issuance of up to 10% of the amount indicated on the sales invoice.
While paying taxes, the agency will be responsible for renewing the contracts of public utilities, telephone, community fees and municipal taxes for the new owner. This will require a hand written authorization.