The eight steps
Decide what you want, and view it twice
Set your budget, including approximately 10% for taxes and fees. When you find a property you like, see it again on another day before you commit.
Appoint an independent lawyer
An abogado protects your interests throughout. We can introduce you to an English-speaking lawyer, or you can choose your own.
Get your NIE number
Every buyer needs an NIE, the tax identity number for foreigners. In Tenerife it is issued by the Policía Nacional, by appointment, on form EX-15 with the fee paid on form 790-012. Your lawyer can arrange it, including under a power of attorney.
Open a Spanish bank account
You will use it for the purchase and for the direct debits that pay your bills afterwards.
Sign the private contract and pay the deposit
The contrato de compraventa sets out the price, the dates and the conditions, in Spanish and English. The deposit is normally 10%. Under the usual arras penitenciales, a buyer who pulls out loses the deposit and a seller who pulls out repays it twice over. Your lawyer should hold the deposit.
Let your lawyer carry out the searches
The lawyer obtains the Nota Simple from the Land Registry to confirm the owner and any mortgages or embargoes, checks the IBI, water, electricity and community fee receipts, and makes sure the deeds, the Registry and the Catastro describe the same property.
Complete at the notary
Buyer, seller (or their representatives) and, where a mortgage is involved, the bank sign the escritura before the notary. The balance is paid, usually by banker's draft, and you receive the keys.
Register and settle in
The taxes are paid, the deed is registered in your name, and the utilities, IBI and community fees are transferred to you and set up on direct debit.
Why the lawyer matters so much
In Spain, some debts are tied to the property itself: registered mortgages and charges, unpaid IBI, and community fees for the current year and the three before it. They can become your problem when you buy. A lawyer's searches, finished before you pay the balance, are what stop that happening. On resales the lawyer should also look for extensions or changes that were never registered and get them put right as part of the sale.
Taxes when you buy
| Buying a resale | Buying new from a developer | |
|---|---|---|
| Tax on the purchase | ITP transfer tax at 6.5% | IGIC at 7% |
| Stamp duty (AJD) | Not payable on the purchase | 1% |
| What the tax is based on | The Catastro reference value or the price paid, whichever is higher | The price |
| Notary and Land Registry | Official fee scales, based on the price | |
If you buy off-plan, the developer will ask for staged payments. Spanish law requires those payments to be protected by a bank guarantee or insurance until the property is handed over.
Running costs once you own it
| IBI | Yearly council tax from the town hall, based on the valor catastral shown on the receipt. |
|---|---|
| Basura | The town hall's refuse collection charge. |
| Community fees | For the upkeep of the complex. They differ a great deal between complexes, so we give you the figure for the property you are considering. |
| Water and electricity | Metered, with a standing charge whether you are there or not, and paid by direct debit. |
| Insurance | Home insurance is advisable, and required if you have a mortgage. |
Taxes for non-resident owners
If you spend more than 183 days a year in Spain you are normally tax resident here. If you are not, and you do not let the property, you file Modelo 210 each year and pay tax on an imputed income: 1.1% of the cadastral value (2% if the town hall has not revised its values in the last ten years), taxed at 19% for residents of the EU, the EEA, Iceland, Liechtenstein and Norway, or 24% for everyone else, including UK residents.
For example, on a cadastral value of €100,000 that has been revised recently, a UK owner pays €100,000 × 1.1% × 24% = €264 a year, and a German owner €100,000 × 1.1% × 19% = €209 a year. Joint owners each file for their own share.
Wealth tax can also apply where someone's net assets in Spain are above €700,000 each, on a scale of 0.2% to 3.5% in the Canary Islands, and a return is needed whenever gross assets exceed €2,000,000. A temporary solidarity tax can apply to taxable wealth above €3,000,000 after that allowance.
Frequently asked
What are the total costs of buying a property in Tenerife?
Plan on approximately 10% of the price. On a resale, 6.5% of that is transfer tax; on a new build, 7% IGIC plus 1% stamp duty. The rest covers the notary, the Land Registry and your lawyer.
Who should hold my deposit?
Your lawyer, in their client account. TeneRealty never asks to hold a buyer's deposit.
Do I have to be in Tenerife to complete?
No. You can give your lawyer a power of attorney to sign at the notary on your behalf.
Can I get Spanish residency by buying a property?
Not any more. Spain closed its golden visa route for property investors in April 2025.
This is general information for the Canary Islands, reviewed in September 2026. It is not legal or tax advice, and rates change, so check your own position with your lawyer. Selling instead? See the costs of selling.