Just like in most countries, you will have to take into account the extra costs of purchasing real estate in Tenerife. But first the good news: the extra costs are significantly lower in Tenerife than in most European countries!
What are the extra costs for purchasing real estate in Tenerife, other than the selling price?
The most obvious extra cost when buying a property are the notary fees. These are calculated in proportion to your purchase price, so the more expensive your purchase, the more the notary will cost. Other factors depend on the existence of a mortgage (loan) and whether special things such as usufruct etc. are involved. You can count on €1,100 notary fee for an average purchase of a country house in Tenerife. You cannot get an exact calculation in advance.
Your purchase will need to be registered in the Property Register. You pay registration fees for this. The registration fees are not really expensive so count on an average of €600, again in function of the purchase value of your property.
The biggest cost of purchasing real estate in Tenerife is the purchase tax. In the Canary Islands, the ITP, i.e. the tax on the transfer of assets, is set at 6.5% of the purchase price. This has to be paid within 30 days after signing your deed at the notary.
If you buy a new construction, an additional 1% will be added to the 6.5%.
Let an independent party assist and guide you with your purchase in Tenerife. A lawyer or a real estate consultant is needed to process your purchase in a smooth and correct manner. At Seb Leeson & Co, you’re already in the right place! Depending on the service provider and the type of service, you can count on a few hundred to a few thousand euros. Contact us for the best personal independent assistance and guidance in Tenerife!