How to buy a property in Tenerife

How to buy a property in Tenerife

Discover the secrets of purchasing real estate on the island of Tenerife! Let us guide you through the entire process and provide insights and knowledge not only on the path to buying your dream property but also about life on Tenerife. Familiarize yourself with the different locations, understand the legal requirements, and explore financing options - gain all the information you need to know about buying real estate in Tenerife. Navigate the local real estate market to ensure a smooth and hassle-free property purchase!

In this article, you will learn:

  • Steps how to buy a property in Tenerife

  • Essential Factors to Consider when Buying an Apartment in Tenerife

  • Best locations to buy a property in Tenerife

  • Legal Process of Buying an Apartment in Tenerife

  • Financing Options for Buying an Apartment in Tenerife

Step-by-Step Guide to Buying a property in Tenerife

  • Set your budget: Start by establishing a realistic budget for buying a property in Tenerife. Consider your financial situation, including savings, income, and potential financing options.

  • Conduct market research: Familiarize yourself with the real estate market in Tenerife. Explore different areas, property types, and prices to gain an understanding of available options that suit your preferences.

  • Approach a real estate agency: Find a reliable and experienced real estate agency in Tenerife specializing in property sales. They can assist you throughout the entire buying process, provide guidance, and help you find suitable apartments that meet your requirements.

  • Define your preferences: Create a list of desired apartment features, such as the number of bedrooms, location, amenities, and any specific preferences you have. This will help the real estate agency narrow down the search.

  • Visit properties: Visit Tenerife to view apartments that align with your criteria. Your real estate agency will arrange property viewings and accompany you to provide information and answer your questions.

  • Make an offer: If you find an apartment you want to purchase, submit an offer through the real estate agent. Negotiate the price and purchase conditions, such as the signing date of the sales agreement and payment procedures, with the property owner through the real estate agent's assistance.

  • Arrange financing: If financing is required, explore mortgage options available in Tenerife.

  • Exchange contracts and pay a deposit: Once the offer is accepted, your real estate agency will help you prepare a reservation contract (known as "arras"). Thoroughly review the contract, sign it if everything is satisfactory, and pay the agreed-upon deposit to secure the apartment.

  • Proceed with the purchase: Maintain close cooperation with your real estate agency. They will conduct necessary checks, ensure compliance with legal requirements, and coordinate with the seller's representative for a smooth property transfer at the notary office.

  • Pay the remaining amount and fees: Prior to completion, ensure you have sufficient funds to pay the remaining purchase price, as well as any taxes, fees, and costs associated with the notary. The money should be prepared in your previously opened account with a local bank.

  • Sign the purchase-deed agreement: The signing of the purchase-deed agreement takes place before a notary, where the remaining amount is paid, and the keys to the property are handed over to you.

  • Property registration: The notary or the real estate agency will take care of registering the property in your name in the land registry and property register in Tenerife, officially transferring ownership to you.

Essential Factors to Consider when Buying an Apartment in Tenerife

Tenerife is the largest of the Canary Islands, offers a spectrum of natural beauty, incredible climate, and a wide lifestyle. With its long beaches, stunning landscapes, and great investment opportunities, Tenerife has become a favorite destination for real estate buyers. However, buying a property in Tenerife requires careful consideration of several factors to ensure a successful investment.

  • Location: Is a fundamental factor to consider. Tenerife offers a variety of diverse areas, each with its own characteristics and advantages. It is necessary to decide whether you prefer a coastal apartment closer to the beaches and tourist activities or a property in quieter inland, rural areas. When evaluating the suitability of a location, consider the proximity to amenities such as supermarkets, schools, medical facilities, and transportation services in relation to your needs.

  • Budget: Before you start searching for the ideal property, it is important to establish a clear budget. Consider not only the purchase price but also the costs associated with buying and maintaining the property, such as taxes, notary fees, community fees, and possible renovations. Determine your investment capital and, if necessary, explore financing options. Keep in mind that prices can vary significantly depending on factors such as location, size, and amenities of the property.

  • Legal Considerations: Make sure that the property you are interested in meets all legal requirements. Verify that the property is not encumbered by debt and has the necessary licenses if you wish to use it for tourist rentals. Take advantage of the services of a real estate agency that will guide you through the entire process, including contract review and property ownership verification.

  • Amenities and Facilities: Find out what amenities and services are offered by the apartment complex or building. Consider features such as parking spaces, security systems, elevators, pools, gyms, and storage areas. These amenities can make your life easier and add value to the property. Compare the maintenance and management standards of the complex to ensure a well-maintained and secure environment.

  • Potential for Rental Income: If you are considering purchasing a property as an investment, analyze the potential for rental and profitability. Tenerife attracts a significant number of tourists throughout the year, offering a lucrative market for short-term rentals. Get an overview of rental rates and any restrictions or regulations regarding short-term rentals. The proximity to popular tourist areas and the availability of services can significantly influence the rental potential of your apartment.

  • Professional Assistance: It is highly recommended to engage the services of a reputable real estate agent with local knowledge and expertise when buying a property in Tenerife. An experienced agent can assist you throughout the purchasing process, provide valuable market information, and help you find your dream property that meets your specific requirements. Look for a real estate agency where you can communicate in your native language to avoid communication errors.

    Buying an apartment in Tenerife can be a rewarding investment. By considering important factors such as location, budget, legal aspects, amenities, rental potential, and professional assistance, you can make an informed decision and find the perfect property that meets your needs and objectives. Conduct thorough research, seek expert advice, and take your time to ensure a successful and enjoyable property purchase in this beautiful island paradise.

Best locations to buy a property in Tenerife

Tenerife offers plenty of great locations where you can buy your dream property. Whether you're looking for active coastal areas or peaceful inland retreats, everyone can find their place on Tenerife.

  • Costa Adeje: Located in the southwestern part of Tenerife, Costa Adeje is famous for its luxurious resorts, long beaches, and high-quality amenities. This area attracts demanding clients seeking a high standard of living. Properties in Costa Adeje often offer stunning views of the Atlantic Ocean and neighboring islands, and are located in close proximity to fine restaurants, designer shops, and quality golf courses. It's an ideal choice for those looking for an exceptional and vibrant coastal location.

  • Los Cristianos: Situated on the southern coast of Tenerife, Los Cristianos exudes a relaxed style and offers a combination of picturesque beaches, a lively promenade, and a vibrant atmosphere. This former fishing port has developed into a popular tourist destination with a wide range of properties for sale. Buyers in Los Cristianos can enjoy a relaxed coastal lifestyle, excellent dining options, water sports activities, and convenient access to ferry connections to nearby islands. The area is relatively flat, making it suitable for older clients.

  • Los Gigantes: Located on the western coast of Tenerife, it is renowned for its stunning cliffs and natural beauty. The towering cliffs, known as "Acantilados de Los Gigantes," create a breathtaking backdrop. This picturesque and historic town offers a harbor, ideal for boat trips to explore sea caves and observe marine life. With a tranquil atmosphere, it is perfect for those seeking peace and relaxation.

  • Puerto de la Cruz: Located on the northern coast of Tenerife, it is known for its rich cultural heritage, stunning landscapes, and charming historic center. This city offers a traditional and authentic atmosphere of the Canary Islands. Residents here can relax in beautiful botanical gardens and enjoy the famous Lago Martiánez swimming complex, or visit the world-renowned Loro Parque, considered one of the most beautiful zoos in the world.

  • Santa Cruz de Tenerife: Santa Cruz is the capital city offering a perfect blend of urban comfort and natural beauty. This bustling city boasts modern infrastructure, a vibrant arts scene, and a cosmopolitan lifestyle. Buyers can find various types of properties here, from city center properties to coastal complexes. The city is home to prestigious educational institutions, diverse cultural experiences, and the world's second-largest carnival, attracting up to 2 million visitors annually.

  • La Laguna: Listed as a UNESCO World Heritage, La Laguna is a historic town nestled in the hills of the northern region of Tenerife. La Laguna is renowned for its well-preserved architecture and charming streets, offering a unique atmosphere that blends history with a lively student community. Apartment buyers in La Laguna can enjoy a peaceful environment, cultural events, and excellent connections. Just beyond the town lies the northern airport of the island, providing convenient access to the surrounding islands and the mainland.

When it comes to buying an apartment in Tenerife, the island offers a number of attractive locations to suit different preferences. Whether you're looking for a luxurious coastal lifestyle in Costa Adeje, a laid-back atmosphere in Los Cristianos, a traditional experience in Puerto de la Cruz, an urban setting in Santa Cruz de Tenerife or a historic atmosphere in La Laguna, Tenerife has something for everyone. Consider your desired lifestyle, amenities and surroundings to find the perfect location that matches your preferences and investment goals.

Legal Process of Buying an Apartment in Tenerife

When buying an apartment in Tenerife, it is important to understand the legal procedures associated with the process to ensure a smooth and secure transaction. In this subsection, you will learn about the key steps in the property purchase process in Tenerife.

  • Find a qualified real estate agency: It is highly recommended to engage the services of a qualified and profesional real estate agent with local knowledge and expertise when buying a property in Tenerife. An experienced agent can assist you throughout the purchasing process, provide valuable market information, and help you find your dream property that meets your specific requirements. Look for a real estate agency where you can communicate in your native language to avoid communication errors.

  • Reservation private contract: If you are already at the stage where you have found the ideal property, the buyer usually signs a reservation agreement known as „contrato de arras“ with the seller and pays a reservation fee. This agreement confirms the intention to purchase the property and temporarily reserves it from the market, providing enough time for necessary checks and preparations for the signing of the purchase agreement at the notary's office. The reservation agreement will be prepared for you by a real estate agency in Tenerife.

  • Due Diligence: From the moment the reservation agreement is signed, a period begins during which the real estate agency conducts a property inspection. These steps include verifying ownership, checking for any outstanding debts or encumbrances, confirming planning permissions and licenses, and ensuring compliance with local regulations and laws.

  • Buy-selling day: The buyer agrees with the seller in advance to carry out the transfer of the property at the notary's office. The buyer pays the remaining amount either through a bank transfer or by check, and the seller transfers the ownership rights to the buyer. A notary public oversees the signing of the public deed of sale, known as "escritura pública," which is then registered in the property registry.

  • Additional Costs and Taxes: There are additional costs and taxes associated with purchasing a property in Tenerife. These include notary fees, land registry and registration fees, property transfer tax, and registration in the public registry. Your real estate agency will provide you with a comprehensive list of fees.

The legal process of buying an apartment in Tenerife involves several important steps aimed at protecting the buyer's interests and ensuring a smooth transaction. Engaging a qualified real estate agency, conducting property analysis, signing a private purchase contract, and completing the property transfer are key stages of this process.

Financing Options for Buying an Apartment in Tenerife

There are various financing options available to assist buyers in realizing their dream of owning a property on this beautiful island. In this subsection, you will learn about several financing options.

  • Mortgage Loans: One of the most common financing options is obtaining a mortgage loan from a bank or financial institution. Spanish banks offer mortgage loans to both residents and non-residents with varying terms and interest rates. Buyers can typically finance a certain percentage of the property's value, and the loan amount and terms depend on factors such as the buyer's financial profile, credit history, and the property itself.

  • Developer Financing: In some cases, when purchasing a brand-new property, developers may offer their own financing options for buyers. This can include flexible payment plans, installment options, or even rent-to-own arrangements.

  • Personal Savings: If you have been saving or investing throughout your life with the purpose of buying a property, using your own funds is one possible option. Paying for the property in full eliminates the need for external financing and can simplify the purchasing process. It also avoids interest payments and provides a sense of ownership right from the start.

  • International Financing: Buyers from specific countries may have access to international financing options specifically designed for purchasing properties abroad. These financial solutions are intended for non-residents of the country and offer specialized terms and conditions that facilitate the purchase process.

There are various financing options available to assist you in purchasing a property in Tenerife and turning your dream into a reality. Mortgage loans, developer financing, personal savings, equity release, and international financing are just some of the options to consider. It is important to carefully evaluate each option, compare terms and conditions, and consult with financial professionals to choose the most suitable financing option based on your individual circumstances.