Want to buy or sell a property in Tenerife Island Spain? The island boasts a temperate climate that is the envy of Europe with an annual average temperature of 23 degrees centigrade; the cost of living is generally around a third of that in the UK; and the clear blue skies, fresh ocean breeze, and lack of pollution make it one of the healthiest environments to live in, anywhere in the world.
Other people, however, are motivated primarily by their money accounts while looking to purchase a home in this area. Putting money into bricks and mortar in the sun is quite popular. The practice of buying a property with the intention of renting it out is also very common, especially among those who live near the ocean. While renting out a holiday property in Tenerife may seem like a good idea, new regulations have made it necessary to seek expert assistance.
Canary Islands Real Estate Purchase Procedure
Tenerife, like the rest of the Canary Islands, provides “cheaper” real estate options than the rest of Spain. There are often less taxes imposed by the Canary Islands’ Autonomous Government.
An NIE number, or a foreigner’s identity number, is a prerequisite for purchasing real estate in Tenerife. Anyone having a monetary stake in the Canary Islands must do this. The next step, opening a bank account as a non-resident, is also straightforward.
If you’ve finally located your ideal property in the sun, it’s time to start haggling over the asking price. We are in a “buyer’s market” right now because there are more homes for sale than there are buyers. Those British sellers who are returning to the UK are in a difficult situation because of the strength and volatility of the Pound relative to the Euro.
After settling on a price, your agent will draught a sales contract, known as a Compra Venta. This specifies the down payment amount, the completion deadline, and the remaining balance due at the notary.
While you’re busy signing the compra venta, your estate agent or lawyer is busy gathering the paperwork needed to complete the conveyancing process and preparing the paperwork for switching over your utility bills, etc. at the notary appointment where the title deeds are transferred to the new owner and the balance is paid.
The Spanish Tax Office will require you, as a foreign buyer, to pay a 3% retention of the property’s reported worth; but, if your finances are in order, this retention should be refunded to you within six months. This used to be the responsibility of the buyer, but nowadays it is often covered by the seller. Taxes of 6.5% are levied on used homes and 7% on brand-new construction.
When looking for a real estate company in Tenerife, We suggest looking around for the most affordable insurance rates before settling on a provider to ensure your new property in Tenerife, or any other type of insurance, such as auto or life.
Is there a certain place I should go to?
Close to the sea
Near the ocean is a must-have for most out-of-country purchasers. The majority of the British expat community may be found in the resort communities of Playa de Las Americas, Los Cristianos, Costa Adeje, and Costa del Silencio in the south, Callao Salvaje and Los Gigantes in the west, and Puerto de La Cruz in the north. Quick construction in certain regions is a direct result of high demand, which has naturally led to higher costs. However, a resale one-bedroom property in Los Cristianos is still available for less than £165,000 and is located within easy walking distance of the beach.
One-bedroom apartments in new developments, especially in the ritzy Costa Adeje neighborhood, typically cost twice as much. Luxury single-family homes, especially those on or near a golf course, have seen a recent surge in price to $2 million or more.
Property deals in the south can be found on the outskirts of well-known tourist hubs. Palm Mar sits across the bay from Los Cristianos, where you’ll find the town’s harbour. Construction is ramping up rapidly on a new housing complex, and there are a number of attractively priced flats available (with studios starting at roughly £160,00).
An increasing number of people are looking to buy homes in Puerto de La Cruz, the “old lady” of the island located in the north. Finding new one- or two-bedroom apartments on the cheap is difficult, but it can be done. Just under £100,000 will get you a one-bedroom flat in the heart of the city, just five minutes from the beach. In this greener part of Tenerife, luxury villas are in high demand, but a detached home in this category won’t set you back less than £600,000.
Inland
Due to the island’s geology, even many interior residences have breathtaking ocean views. Granadilla (sometimes called Tenerife’s Tuscany), neighbouring San Miguel, and the town of Adeje are also popular with British purchasers. In the north, La Laguna, La Matanza, and La Orotava are all desirable. While there has been a rise in the number of restoration projects, the supply of suitable properties has decreased.
Homes in the countryside, especially those in smaller communities where most buyers would be native Tenerifians, tend to be priced slightly lower than their coastal equivalents. However, rather than checking out the real estate agent’s window, the best way to learn about such openings is to strike up a conversation with the proprietors of nearby bars and shops. Before signing a contract on a piece of real estate, it is a good idea to have a conversation with some of the residents to get their “insider opinion” on the region.
If you’re looking to improve your quality of life, remember the three golden rules of real estate: location, location, and location. Invest your money where the sun always shines and the ocean’s shimmer is never far away.
