Paperwork required to buy a property in Tenerife

Buying or selling property is one of the most important (and probably stressful) legal transactions that people undertake in their lifetime. If you are buying property in Spain, you need to be aware of the Spanish system and be confident that your lawyer has experience dealing with the complex system so that you can go through the process with as little stress and undue cost as possible.

‘’Lupain Tenerife Estate Agents’’ has been operating in Tenerife - Spain for over 20 years. With multi - language speaking lawyers, their property team will ensure a smooth legal process, safe investment and a hassle-free experience anywhere in the Canary Islands.

Before viewing a property in Spain, ‘’Lupain Tenerife Estate Agents’’ recommends that you familiarize yourself with these basic guidelines:

Organize your funds

To reserve a property in Spain, it is customary to place a 10% holding deposit, which will take the property off the market and prevent you from losing it to a third party.

Get advice

At ‘’Lupain Tenerife Estate Agents’’, we provide our clients with a free initial consultation prior to purchase so that you can ask any questions and talk through any concerns.

Get everything in writing

Never hand over a deposit unless it is accompanied by clear written guarantees, laying down the terms of the sale. Never hand a deposit directly to a private vendor. All reputable agents and developers will hold your deposit in a protected client account.

Starting the purchase procedure

While your property is reserved, your lawyer can make all the necessary verifications to ensure that the home is clean of any debts or charges. If it is an off-plan property, your lawyer will ensure all the necessary licenses and bank guarantees are in place. After two-three weeks it is customary to exchange contracts, at which time if purchasing a resale property 10% of the purchase value must be paid and if it is a new development, you are required to pay 30-40%, though it will depend on the payment schedule set by the developer.

Final completion

The property sale is formally completed when the deeds, or “escritura” are signed before a Notary and when the full payment is made. Then the ownership is formally handed over to the buyer. Remember that property is principally a medium to long-term investment and the longer you can afford to commit to a property the better it will be and as you build up equity then you can perhaps consider purchasing a second investment property. Don’t get too greedy. Find the right balance between financial stability and being able to enjoy life. Financial security is very important, but your quality of life is priceless. Finally, be aware that unlike shares, managed funds, banks or building societies, you can’t just sell part of your investment property if you need money. So, be cautious, but consider that record migration levels due to global warming, together with increasing tourism to Tenerife, and demand from potential purchasers combined with a property shortage, are crucial factors favouring investing in property here.

We are very happy to have a meeting with you, or an initial chat over the phone, to establish the right strategy and structure for you, and help you to maximise your own personal investment possibilities in Tenerife property for your future wellbeing.

For more information on buying property in Spain contact ‘’Lupain Tenerife Estate Agents’’ who are based in Edificio Cristian Sur L60, Avda. Amsterdam No 4, Playa de Los Cristianos, Tenerife 38650.