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If you are buying property in Spain and you choose Tenerife as your ideal location, you should research the matter thoroughly before arrival on the island. 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.
Below we have listed some of the pitfalls of buying a property in Spain (in general) and Tenerife (in particular), and how to avoid them, so that you can feel confident about your Spanish property journey ahead.
1. 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 conveyancing
2. 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 licences 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
3. Not understanding your contract(s)
Buying a property in Tenerife is an important investment, so you need to make sure that when you sign any contract, you know the exact consequences. Misunderstanding the purchase contract, risks serious financial repercussions.
4. 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 Spanish property purchase tax, for example IBI and non-resident property tax.
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 above-mentioned problems is to consult an independent legal expert who can assist you with the entire process when purchasing a property in Spain, from NIE acquisition to conveyancing.
You should also try to choose a different, independent lawyer to the seller of the property or Estate Agent, guaranteeing that they are independent and have your best interests in mind.