What additional costs can you expect to pay when purchasing your Tenerife property:
When purchasing a property, the legal requirement for the transfer of paid tax when you are NOT the FIRST owner is 6,5% of the purchase price. When you are the FIRST owner of the property , you will be expected to pay 7% IGIC plus 1% for legal regulations.
The buyer will be required to add costs for all administration work which needs to be completed after signing the deed at the notary;
for example the invoice from the notary, registration fees, transfer of water, electric, land registry and waste disposal collection.
These transfers of ownership will be reassigned into the new owners name.
If your property purchased is situated in a complex area, the associated community fees will also need to be paid and administration completed to be transferred into your name.
We will make sure that all administration work which is required when buying a property at Tenerife will be done correctly for you.
As the Property Owner, what permanent costs will you be expected to pay?
If you are a property owner in Tenerife, you will be responsible to pay the water, electricity, annual land registry (IBI) and waste disposal collection costs. If your purchased property is based in a complex location, you will need to pay the fixed monthly, community fees.
There is also the home insurance to take into consideration which costs will depend on the property you are purchasing.
All non-residents who purchase a property in Tenerife must pay a non-resident tax, once a year for properties that are not rented out.
(This is different for properties that are rented out).
Arrangements can be made for notifications to be set up annually for payment of non-resident tax.
What costs are expected when selling your property in Tenerife:
When selling your property in Tenerife, as a non-resident, you will be expected to pay 3% of the total sale price.
These costs will be held at the notary. This is to pay for the taxes you are expected to pay from 19% on the profit you make from the sale.
If the 3% has a shortfall and is not enough to pay the taxes, you will be legally required to pay the difference.
Equally, if the 3% paid at the notary exceeds the amount to be paid, you will be entitled to reclaim the overpayment which has been held.
You will need to pay the PlusValia which can only be calculated once there is a sale date. This will be calculated according to the zone, the m2 and how long you have been the owner of the house.
In addition to these fees, there is a broker’s commission which has been agreed with you in advance and this is included in the sale price.
As a seller of the property, you must also have a Certificado Energética and the costs for this are for the seller.
As well as the cancellation costs of a loan from the bank (if you have any outstanding loan for the property).
If you have any further questions regarding the costs for buying, selling your property or the legal process to follow;
please feel free to contact us.