Buying Property in Spain, Tenerife

There has been a steady growth in the real estate sector in Spain recently. 20% more real estate sale-and-purchase transactions were made in Spain in the first half of 2017 than in the previous year. In the resort area of Spain, in particular, in Tenerife, the purchase of real estate is very popular among foreigners, who in the first quarter of this year alone contributed about 900 million euros to the Spanish economy.

What makes the Spanish real estate market attractive for foreign investment?

Currently, it is safety along with the high level of quality and profitability of housing in Spain that are known to the world. Spain is on the list of the safest countries in Europe due to the low level of crime and its stability.

Resort property in Spain is in great demand. The popularity of Spain as a tourist destination ensures the stability of the rental market and enhances the functional use of real estate.

In this respect, Tenerife – devoid of the concept of seasonality - is one of the most attractive destinations for investors. The mild climate combined with all other advantages of the eurozone provides a steady demand for both short-term and long-term lease in Tenerife.

Services of the company SILK WAY STAR

SILK WAY STAR is a company specializing in the sale of luxury real estate in the south of Tenerife. Our managers know all about how to buy property in Spain at a profit. We will help you to buy a house, villa or a flat in Tenerife and provide legal support at every stage of the process from the selecting the property to the closing the deal.

Property selection

At this stage, the buyer is advised by a personal manager - a representative of the company SILK WAY STAR – on any questions related to the purchase of housing in Spain. The manager provides complete information on the selected property in Tenerife (e.g., a flat in Tenerife) and accompanies the buyer to see possible options.

Stages of executing a transaction

Legal check of the selected object

The buyer is provided with an extract (Nota Simple Informativa) from the property register (Registro de la Propriedad) with a full description of the property, information about its owners and a confirmation that the property offered for sale is free from any encumbrances.

Signing a preliminary sale-and-purchase contract and paying a deposit for the property to be removed from sale

The amount of deposit is usually 10% of the value of the property.

Submission of documents for the registration of NIE (Número de Identificación de Extranjero) - the identification number of the foreigner

The NIE tax number is required for the purchase of real estate or a vehicle, for financial transactions and business start-ups. It takes several days to obtain NIE.

Opening an account in a Spanish bank

Before buying a property, you should open an account in a Spanish bank. This procedure is simple and takes about 1 hour.

Getting a mortgage in a Spanish bank (if necessary)

On average, the application review period is about one month.

Conducting a transaction with a notary, where the parties sign the final contract of sale (Escritura Pública)

The buyer transfers the remainder of the amount and then receives the keys and a copy of the deed of ownership signed by the notary.

Registration of the transaction in the property register (Registro de la Propriedad) takes 1 to 3 months.

Upon registration, the buyer receives the original of the contract and an extract from the property register (Nota Simple).

Taxes and fees

When buying property in Spain, rates for taxes and fees vary depending on the region. Thus, when buying flats in Tenerife in a new building, the buyer pays a general indirect tax of the Canary islands - IGIC (Impuesto General Indirecto Canario) - at a rate of 7%. When buying a secondary real estate, one has to pay tax on the transfer of property - ITP (Impuesto sobre Transmisiones Patrimoniales). in the Canary Islands, the rate of this tax is 6.5%.