When deciding to buy a home, many questions often arise: How much savings are required? What is the purchasing process like? And, for international buyers, are you eligible to buy property in Tenerife? Whether you’re a local resident or a foreign investor, these frequently asked questions will help clarify the process.
What taxes apply when buying a property in Tenerife?
For new builds, buyers pay IGIC (7%). For resale properties, the tax is ITP (6.5%). Additionally, you must account for notary, registry, and administrative fees.
Is it better to buy a new build or a resale property?
It depends on your needs. New builds offer modern design, energy efficiency, and construction warranties. Resale properties can be more affordable and located in established areas, but they may require maintenance or renovation costs.
How much money should I have saved before buying a home in Tenerife?
Ideally, you should save around 30% of the property’s value. For example, for a €400,000 property, you should have at least €120,000 saved. This covers not only the down payment but also additional expenses. Some banks may offer financing with a lower upfront percentage after reviewing your financial profile.
What additional costs should I consider apart from the property price?
Notary fees, land registry, administrative costs, taxes, possible renovations, and in some cases, community fees if the property is part of a shared development.
Fixed-rate or variable-rate mortgage?
This choice depends on your profile and long-term plans. A fixed-rate mortgage offers stability and protection against rising interest rates—ideal if your budget is tight or you prefer certainty. A variable-rate mortgage can be more cost-effective if interest rates drop, but it carries more risk.
Which areas are most in demand for buying property in Tenerife?
Some of the most sought-after locations include Adeje Casco, Costa Adeje, Playa de las Américas, and Santa Cruz, due to their excellent services and connectivity.
Can foreigners buy property in Tenerife?
Yes. There are no restrictions. You will only need to obtain a NIE (Foreigner Identification Number).
What is the legal process for buying a home in Tenerife?
It includes signing a reservation contract (contrato de arras), executing the deed before a notary, paying the corresponding taxes, and registering the property in your name.
Is Tenerife a good place to invest in real estate?
Absolutely. With its year-round climate, stable tourism sector, strong international demand, and appreciation in areas such as Adeje, Tenerife continues to be a highly attractive market for both living and investing.
What taxes apply when buying a property in Tenerife?
For new builds, buyers pay IGIC (7%). For resale properties, the tax is ITP (6.5%). Additionally, you must account for notary, registry, and administrative fees.
Is it better to buy a new build or a resale property?
It depends on your needs. New builds offer modern design, energy efficiency, and construction warranties. Resale properties can be more affordable and located in established areas, but they may require maintenance or renovation costs.
How much money should I have saved before buying a home in Tenerife?
Ideally, you should save around 30% of the property’s value. For example, for a €400,000 property, you should have at least €120,000 saved. This covers not only the down payment but also additional expenses. Some banks may offer financing with a lower upfront percentage after reviewing your financial profile.
What additional costs should I consider apart from the property price?
Notary fees, land registry, administrative costs, taxes, possible renovations, and in some cases, community fees if the property is part of a shared development.
Fixed-rate or variable-rate mortgage?
This choice depends on your profile and long-term plans. A fixed-rate mortgage offers stability and protection against rising interest rates—ideal if your budget is tight or you prefer certainty. A variable-rate mortgage can be more cost-effective if interest rates drop, but it carries more risk.
Which areas are most in demand for buying property in Tenerife?
Some of the most sought-after locations include Adeje Casco, Costa Adeje, Playa de las Américas, and Santa Cruz, due to their excellent services and connectivity.
Can foreigners buy property in Tenerife?
Yes. There are no restrictions. You will only need to obtain a NIE (Foreigner Identification Number).
What is the legal process for buying a home in Tenerife?
It includes signing a reservation contract (contrato de arras), executing the deed before a notary, paying the corresponding taxes, and registering the property in your name.
Is Tenerife a good place to invest in real estate?
Absolutely. With its year-round climate, stable tourism sector, strong international demand, and appreciation in areas such as Adeje, Tenerife continues to be a highly attractive market for both living and investing.