Anyone buying real estate in Tenerife will quickly come across terms like NIE number, ITP, or gestoría. First, the good news: The purchasing process in the Canary Islands is extremely secure from a legal standpoint. You just need to properly factor in the rules and associated costs from the very beginning.
To ensure there are no surprises at the notary appointment, we’ve summarized the most important points for you.
1. The NIE number: You can’t do without it
The NIE (Número de Identificación de Extranjero) is your personal Spanish tax ID number for foreigners. In short: Nothing works in Tenerife without an NIE number. You need it for:
The notarized deed of sale (Escritura)
Opening a Spanish bank account
Transferring utilities (electricity, water, and internet)
Buying a car
Our tip for your timeline:
Apply for your NIE number as early as possible. Applying in person at the local National Police station requires appointments, which are often booked up weeks in advance. Alternatively, you can apply for the NIE at the Spanish consulate in your home country—or you can use our local network: We’ll put you in direct contact with experienced local gestorías who will handle the entire application process for you via power of attorney.
2. How much will the additional costs be on top of the purchase price?
As a rule of thumb, you should budget for approximately 8 to 10% in additional costs on top of the purchase price.
The costs break down as follows:
A. Acquisition Taxes
Here, Spanish tax law distinguishes between used and new properties:
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Existing properties (resale):
You pay the real estate transfer tax (ITP). In the Canary Islands, this tax is 6.5%. This is very attractive compared to mainland Spain (where rates are often 8–10%).
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New construction (from the developer):
Here, the Canary Islands value-added tax (IGIC) of 7%, plus a stamp tax (AJD) of approximately 1%.
B. Notary and Land Registry
The fees for the notary and land registry entry (Registro de la Propiedad) are tiered by law and depend on the purchase price. For an average residential property, these two costs combined usually range between €1,500 and €2,500.
C. Lawyer & Gestoría: Why Having a Strong Real Estate Agent by Your Side Is Crucial
Unlike in some other countries, notaries in Spain do not conduct an in-depth review to determine whether a property complies with building codes or has hidden debts. This is where your real estate agent comes in: We won’t leave you to navigate the bureaucratic hurdles on your own.
A professional real estate agency supports you far beyond simply selecting a property. Through our established, German-speaking network, we connect you with reliable lawyers, gestorías (administrative experts), tax advisors, and banking contacts. We ensure that everything comes together seamlessly.
Conclusion
Buying real estate in Tenerife is a stress-free experience when you have the right experts by your side. With a well-coordinated network of real estate agents, gestorías, and lawyers, you not only save valuable time but also ensure your purchase is fully protected from a legal standpoint.
Do you have questions about a property or would you like to discuss the transaction process?
Get in touch with us. The team at VON POLL Real Estate Tenerife Sur will guide you safely and transparently through the entire purchase process, from the first viewing to the handover of the keys.
