Recommendations for buying a Property in Tenerife from local Property Purchase expert Lawyers, learn about taxes and possible issues.
Buying a property in Tenerife is an exciting proposition for many, but also one that needs a great deal of time dedicated to research and preparation. A common misconception made by first-time buyers is that the purchasing process is the same in Tenerife as in their home country.
This can often lead to mistakes that either cause them to waste their time and/or spend more money than necessary. Here are some pitfalls when buying a property in Tenerife, and how to avoid them, so that you can feel confident about your Spanish property journey ahead.
Not having your registrations in place before the buying process
Certain registration requirements are basic for your property process. You need to make sure you obtain your NIE number – required for property purchases and legal conveyancin
Insufficient property research
By not doing enough research into the property you would like to buy, you may risk encountering unexpected costs or additional parts of the process. Important considerations include:
- Has the house been built legally?
- Does it need any renovation work?
- Does it have building licenses that cover any modifications required/desired?
- Are there any restrictions on modifications?
- Are there any urban planning records of the property?
- Is there a Community of Owners and how does it work
Not understanding your contract(s)
Buying a property is an important investment, so you need to make sure that when you sign any contract, you know the exact consequences. Misunderstanding a contract, risks serious repercussions.
No preparation for future fees
Remember, the purchasing of a property is not the end of the process. You still need to budget for ongoing costs, such as any mortgage repayments, home insurance, utility bills, and various taxes such as non-resident tax, property tax (IBI).
Spain’s utility costs are one of the highest in the EU, so it is essential to take this into account when budgeting your monthly outgoings.
The most efficient way to avoid any of the abovementioned problems is to consult an independent legal expert who can assist you with the entire purchasing process, from NIE acquisition to conveyancing. You should also try to choose a different Independent Legal Expert to the seller of the property or Estate Agent, guaranteeing that they are independent and have your best interests in mind.