Purchase Cost of Real Estate in Tenerife
We remind you that Wady Properties accompanies the buyer throughout the process, before, during and after Deed.
The additional costs for the purchase of a property in Tenerife are:
The highest cost of buying a Property in Tenerife is the purchase tax.
In the Canary Islands, the ITP (Property Transfer Tax), the tax on the transfer of assets, is 6.5% of the purchase price. This must 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 Capital Transfer Tax of 6.5%:
For a newly built property:
Purchase tax paid instead is Canary IGIC): 7% of the purchase price declared in the deed.
This is calculated in proportion to the purchase price.
The more value the property has when buying it, the higher notary cost will be.
The exact rates depend on the number of pages in the Deed of Sale, as well as the number of owners, copies that are issued and certificates or procedures that are requested.
It must also be taken into account if there is a Mortgage, Credit, the request for Usufruct or Inheritance this will also vary.
Your purchase must be registered in the corresponding Property Registry, according to the location of the property that you have purchased. The fees to pay for registering the property in your name are at your own expense.
TENERIFE PROPERTY TAXES
As an owner of property in Tenerife, you have to comply with a number of obligations, including declaring your property to the tax authorities.
Two taxes you must pay:
1: IBI (IMPUESTO DE BIENES INMUEBLES)
As the owner of a Property in Tenerife, you must pay the IBI annually. This is the property tax.
You must pay it regardless of whether you are a resident or not.
The IBI maturity dates depends on town hall , for example in Adeje must be paid from June to august.
In our After Sales, we will take care of organising the change of name and the direct debit to your bank account in Tenerife.
As an owner and non-resident (in other words, you do not officially live in Tenerife for more than half a year and do not pay any income tax there either), you have to pay an additional tax on your property each year, popularly known as the “Modelo 210”.
This tax is calculated taking into account the real income obtained from the property or a fictitious income.
The declaration is individual and separate for each owner depending on the percentage of ownership of each property. For example, a couple who each own 50% of property will have to file a declaration for 50% separately.
Please note that when declaring real estate in Tenerife, you will have to take the initiative to pay this tax, you will not be contacted by the government to do so.