What do I need to buy a property in Tenerife.

What do I need to buy a property in Tenerife.

In this article you will learn

  • Essential documents and resources you need to buy a property in Tenerife

  • What is NIE number.

  • How to open a bank account

  • Why is necessary to have it

  • How often these documents must be renewed

The process of purchasing a property is actually quite straightforward, especially when you have the support of a trusted real estate agent and avoid attempting it on your own. With their expertise, they will smoothly navigate you through the entire buying journey. However, it's important to keep a few key points in mind. While it may initially appear daunting and complex, there's no need to fret as long as you have a reliable estate agent and legal advisor by your side, taking care of your interests and ensuring a seamless experience. To buy a property in Tenerife, which is part of the Canary Islands in Spain, there are a few key requirements and steps you should consider:

  • In order to successfully purchase a property, there are a few important prerequisites to consider. Firstly, you will need to obtain NIE number and open a bank account in Tenerife. For both matters you will need your identity documents, contact details, your personal details and your profession to present at the police station. 

    Additionally, it is essential to have the necessary funds available for the purchase. If you require a mortgage for your property in Tenerife, we strongly advise consulting with your financial advisor or bank prior to commencing your property search. This will provide you with a clear understanding of your affordability and budget. 

    It's important to calculate approximately 8 % above the purchase price to account for additional expenses such as stamp duty, legal fees, notary fees, and land registry fees. Your real estate agent will provide you with a comprehensive breakdown of these costs to ensure transparency before making your purchase.

  • To buy a property in Tenerife as a non-resident it is a essential to get a NIE number (Foreigner Identification Number). Apply for the NIE at the national police station. You have the option to handle the application yourself or to obtain it faster and easier you can hire an assistance from your real estate agent. They will provide guidance and asistence for extra fee. 

    The application procedure generally involves completing different forms in spanish and providing a copy of your current passport. You will be required to pay a fee at the bank and then proceed to the national police station to apply for the NIE number. It's important to be prepared for potentially lengthy waiting times, as the process can take up for hours, an appointment must be done in advance at the police station.

    If you decide to hire your agent a power of attorney to act on your behalf, they can typically manage the NIE registration for you. It's advisable to seek their advice on this matter to ensure a smooth and efficient process.

  • Before you buy a property, it is necessary to open a Spanish bank account in Tenerife. Your agent or legal advisor can assist you throughout this process and may even recommend a reliable bank. It is advisable to choose a bank with a branch near the property you intend to buy, enabling you to have face-to-face interactions if necessary. It is not recommended to open an online bank account. Dealing with matters over the phone or through email can be cumbersome and time-consuming. Ultimately, the choice of bank is a personal decision that you should make based on your preferences and circumstances.

    When opening a Spanish bank account, you will need to provide your passport or ID card as identification and demonstrate that you are legally eligible to open an account. Proof of income, tax return may also be required, although specific requirements can vary between banks. It is important to discuss these details with the bank staff. If you can find a bank where the staff speaks your language, it can certainly facilitate the process. Additionally, having an easy-to-use online banking system available in your language can be beneficial for conducting online transactions when needed.

  • To get NIE number is a essential for buying a property in Tenerife. It is a unique personal identification number assigned to individuals who need to carry out legal or financial transactions within the country. The NIE number serves as an identification and tax reference for foreigners in Spain. Without this number is impossible to buy a property in Tenerife.

    To buy a property in Tenerife is also necessary to open a bank account. This allows you to transfer money for the property purchase and set up standing orders for various utility bills such as water, rubbish, internet, electric, as well as expenses like property insurance and local property rates and taxes. Maintaining sufficient funds in your Spanish bank account is crucial to ensure timely payment of utilities and bills. It is essential to avoid disruptions in services like electricity or water, especially when you are not present in the island. Reconnecting services can be challenging and costly. Furthermore, neglecting payments to local authorities and taxes can result in compounded interest charges. Therefore, it is vital to stay on top of your accounts and ensure timely payments to avoid any complications.

  • The NIE number in Spain does not have an expiration date as so as bank account, so it does not typically need to be renewed. Once you get a NIE number, it remains valid indefinitely, even if you leave Spain and later return. It serves as a permanent identification and tax reference for non-Spanish residents in Spain. However, it's important to note that the validity of the accompanying residency documents, such as a residence permit or visa, may have their own expiration dates and require renewal according to the specific regulations governing each type of residency status. If you have any doubts or specific circumstances related to your residency, it is recommended to consult with the relevant authorities or a legal professional to ensure compliance with current regulations.

All of these previous requirements are necessary for buying a property in Tenerife. The remaining documents for the property sale must be provided by the seller. The validity of all the documents provided by the seller is verified by your real estate agency in collaboration with a notary to ensure a smooth ownership transfer process to your name.