Picture On Mount Teide
Why do people Want To Buy In Tenerife?
Why are people buying property in Tenerife? The main reason is the temperate climate which gives rise to a
moderate year round temperature, where it rarely drops below 60 in the cooler periods and above 90 in the warmer periods.
The north of the island bares the brunt of the inclement weather, as this is where most of the rain falls. Due to the
greater rain fall in the north, the vegetation tends to me more lush and green, and in comparison, the south tends to be
more arid and dry. This affects Tenerife property prices with the south commanding up to a 30 percent premium due to the
better weather. Some people
purchase a home here as a second property to be used as a holiday home and to gain a return on their investment by
renting the property as a holiday let, where as other purchase to live here..
Compared to the UK Tenerife is a cheaper place to live with a better quality of life due to taxes being lower. The
standard rate for IGIC (the Canarian equivalent of VAT) is just 5%. There are more restaurants and bars at your disposal in
the south of Tenerife than you can shake a stick at, and the lower tax rate is reflected in the prices of the menus of these
establishments, which gives rise to a cheaper life style. This is a further reason why people choose to buy property here.
Before buying a property in Tenerife, read our property do’s and don’t section if you are interested in purchasing a Tenerife Property. This is a
non biased general guide to purchasing property in Tenerife. Insight Tenerife accepts no liability for any
problems encountered when purchasing a property in Tenerife based on the general advice below. Always seek legal advice and
work with a reputable Tenerife estate agent before proceeding with any property transaction.
Property Guide Tenerife - Do's And Dont's
Purchasing a property anywhere is no trivial matter and so buying a property abroad can seem a very daunting prospect. Our property do’s and dont’s section is an unbiased guide to steer you in the right direction for property Tenerife. Remember when purchasing a property in Tenerife always seek legal advice and deal with a reputable estate agent.
Property Do's
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Do think about your budget before you start searching for a property in Tenerife. Make
enquiries as to the availability of mortgages if you require one and ensure you have the finance in place.
If nothing else, it will help establish how much you can afford to spend or are willing to spend on a property
in the sun.
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Do consider up front costs. When you purchase a property in Tenerife, there will be
various costs associated with the transaction which include legal notary fees, tax and deposits. Whilst
these figures can vary, you should budget for 8-10% of the total value of property you wish to purchase.
It is better to build this figure into your budget at the beginning rather than have to find the money close to
the time you are ready to exchange contracts
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Do your home work. Once you have established how much you want to spend,
have a good think about what type of property you want. Think about what kind of amenities you require
around your Tenerife property, what you would like to be located close too and if you know Tenerife, what area
you would like to be located in. Think about what you want to use the property for be it your own
exclusive use, as a holiday rental or a mixture of both. If you’ve not been to Tenerife and want to
buy property, visiting the island and checking out potential areas is a good idea.
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Do consider your options. There are numerous types of property available for purchase in
Tenerife, but really only two ways to purchase. You can buy a resale property which is already built and
established, or you can buy off plan. If you buy a resale, you will be able to move into your new property
after completing the contract. Buying off plan or a new development in Tenerife is a different proposition however. When buying off
plan it is very often the case that work on the building will not have started, or it may still under
construction. Which ever the case, be aware that you will not be able to move in until construction is
completed, all necessary licenses for the building have been secured, and you have completed the contract of
sale. That said, this form of purchase is very often a cheaper way of securing a home in the sun.
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Do make sure you select a good estate agent to act on your behalf. They should be
registered with either G.I.P.E. (Confederation Européenne de L’Immobilier) or A.P.I.
(Colegio de Agentes de la Propiedad Inmobiliaria). If you are in Tenerife, meet with them, if not speak
to them over the phone and try to gauge their professionalism. Question them about the kind of
services they provide, what their commission rates are and other services they have or have access too.
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Do make sure the estate agent is covered by indemnity insurance.
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Do make sure you fully understand any paperwork you are asked to sign. Ask if the
paperwork is available in English. If not, take it to a translator to be certain.
- Do make sure you know the legal requirements for purchasing a property. To own a property in Spain you to have an NIE number. Without it, you cannot own property in Spain . Speak to your estate agent for more information on how to acquire one. Also be aware that it is necessary to retain 3% of the total purchase price of the property and pay it too the Spanish government within 30 days of purchasing a property. This is to cover any tax liabilities the purchaser may have in Spain, but can be claimed back from the Spanish government. This point does not apply if you have residencia. For more information, speak to your estate agent.
Property Dont's
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Don’t use the first estate agent you happen to find. Shop around and make sure they are reputable, professional and have all the services you require.
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Don’t listen to friends and relatives who have already purchased property abroad. Laws change frequently, so their information may be out of date. Always take advice from a reputable estate agent or a lawyer.
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Don’t sign any paperwork you are unsure about. Ensure you have reputable estate agent or employ a lawyer if you are not sure. If the paperwork is in Spanish, ask for an English translation.
- Don’t hand over any payments without an official receipt. If you are asked to sign a contract prior to completion of the purchase of your desired property, and a deposit payment is required as part of the contract, make sure you fully understand the contract you are signing, and what rights you have if any to get your money back.