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We have 212 properties for sale in Tenerife This month 42 properties were added
October 07, 2014

Buying a Property - Additional Costs

Just the same as in the UK, there are also additional costs on top of the purchase price when buying a property in Tenerife. When you buy from FT Casa, there are no hidden costs or commissions to pay – our fee is included in the sales price of the property and this is paid by the vendor. The costs that the buyer are responsible for are the official, legal costs such as taxes, notary, land registry, solicitor´s fees etc.

There is a tax called the Plus Valía which is a tax on the increase of the value of the land from the last time it was sold, but it is the vendor who pays this.
Another point to note is that if the vendor is not a Spanish resident, then the buyer is lawfully obliged to retain 3% of the declared purchase price of the property which is then paid directly to the Spanish Tax Office (La Hacienda) and this must be paid within 30 days of signing at the Notary. The reason for this is to prohibit the vendor, who is a non-resident, from failing to pay the corresponding taxes after the sale of the property.

Here is a guideline of additional costs which you will have to pay:

If no mortgage is required, then you can expect to pay approximately 8% – 10% of the purchase price in costs:

If a Tenerife mortgage is required, then you can expect to pay approximately 10% – 12% of the purchase price in costs. The additional costs are derived from the mortgage set-up:

This may all sound rather daunting but it is really quite straightforward and together with your agent and your lawyer, you’ll have on-hand assistance and advice guiding you on this final step to owning your very own home in Tenerife!