How to Buy Real Estate in Tenerife?

Procedure for Purchasing Property in the Canary Islands - Where to Start?

Tenerife24 offers a few exclusive properties that we have directly from owners or jointly with our partner real estate agencies. The selection is based on the most common requests we receive. The real estate market in Tenerife offers a wide range of properties varying in price, location, condition, size, and other factors. Likewise, the desires of prospective buyers are just as diverse, which is why our approach is somewhat different from the average real estate agency. The goal of the Tenerife24 real estate department is not to amass a large number of properties but to provide a more targeted, exclusive, and personalised approach to buyers. We listen to each client's wishes, dreams, and possibilities regarding their future real estate purchase in Tenerife during a consultation and then search for the closest match to the client's specified criteria. Throughout the entire purchase process, we support and assist the client at every stage - explaining everything in Estonian, translating documents, and accompanying the client to all necessary official institutions.

For those considering purchasing real estate in Tenerife, we ask that you first think through the following important points:

  • why are you buying the property: for permanent residence, vacations, investment, or a combination of these purposes;

  • what type of property are you interested in: studio, apartment, townhouse, villa, country house with land, commercial space;

  • what should the property be like: number of rooms/bathrooms, square metres, balcony, elevator, view, condition, etc.;

  • what additional amenities are essential: pool, garden, garage, elevator, floor level, ocean view, distance from the beach…

  • what should the surrounding area be like: touristy, quiet residential area, coastal, mountainous, climate zone…

  • what is the planned investment amount.

This information helps our team find a property that meets your wishes with minimal time and effort.

If you have described your wishes to us and plan to travel to Tenerife to view suitable properties, please inform us of your trip in advance so we can make the necessary arrangements with the property owners for viewing. Especially in the southern part of Tenerife, many property owners are foreigners, and scheduling a viewing at a suitable time can take several weeks. The minimum notice period for property viewing trips is 2-3 weeks.

This is also a good time to start preparing the necessary documents. You will need a NIE number (foreigner's identification number) to purchase property in Spain. If the buyers are a married couple with a prenuptial agreement, it must be translated by a sworn translator and apostilled beforehand. Upon arrival in Tenerife, it is also recommended to open an account with a local bank to avoid later delays. A bank account is 100% necessary to purchase property in Spain.

It is advisable to obtain your N.I.E number at the Spanish Embassy in Tallinn first to avoid early morning queues at the police station in Tenerife for N.I.E numbers, residence permits, and other documents. Due to the Covid crisis, you can now only book an appointment electronically through the government self-service website or via email directly with the Las Americas police station. The process in Estonia is a bit simpler, but not as fast as before the Covid period (in June 2022, the N.I.E application process through the embassy took 6 weeks!). You will receive an email with your N.I.E document attached, which you should print out (preferably in multiple copies). This document contains your number for non-resident activities in the Kingdom of Spain, which is valid for 3 months, but the number remains with you for life. N.I.E (Número de Identificación de Extranjero) means "foreigner identification number" in translation.

Obtaining an N.I.E Number in Estonia

Numero de identificación de Extranjero

You need to personally visit the SPANISH EMBASSY IN TALLINN 
(address and phone number below)

OPEN ONLY MON-FRI 09:00-13:00 (!)

Bring your ID card.

  1. Fill out the Spanish form in advance, which looks like this - CLICK HERE!

    Here is a link to the form with added English instructions for filling it out CLICK HERE! (NB! Use the Spanish form from the previous link for filling out)

  2. Pay the state fee in cash (March 2024) € 9,84.
    You can find the latest NIE state fee amount here - search for "Asignación de Número de Identidad de Extranjero (NIE) a instancia del interesado" (the fee may change). CLICK HERE!

  3. State the reason for applying as "economic interests".

  4. You will receive a document with your NIE number approximately 2-6 weeks after applying by email (6 weeks was the waiting time in June 2022 - it depends on the number of applicants).

Additional information can also be obtained from the Spanish Embassy

Spanish Embassy in Tallinn

Spanish Ambassador in Estonia: Mrs. Teresa Orjales Vidal

Liivalaia 13, 6th floor
10118 Tallinn
Tel: +372 667 6651/2 
Consular Section tel: +372 667 6658 - Call this number for N.I.E. questions!
Consular Assistance tel: +372 502 73 57 (This 24-hour number provides consular assistance only to Spanish citizens in Estonia) 
Faks: +372 631 37 67

E-mail: emb.tallin@maec.es
Consular Section e-mail: emb.tallin.vis@maec.es
Cultural Section e-mail: emb.tallin.ofc@maec.es

Website here: CLICK HERE!

How to Apply for an NIE Number in Tenerife?

Detailed instructions for applying for an NIE in Estonian are available here, CLICK HERE!

Finding a Suitable Property

When you have found your dream home or holiday apartment on the paradise island of Tenerife and are determined to make a purchase, we proceed as follows:

  • Depending on your wishes and financial capabilities and the seller's readiness, it is possible to go directly to the notary to sign the purchase agreement. If you need more time for arrangements, or if the seller does, a preliminary agreement can be signed, requiring the buyer to pay a deposit, usually 10% of the property's price. Preliminary agreements can be drafted with various conditions, which we will explain to the buyer in detail based on the specific transaction.

  • The broker, in cooperation with the seller and notary, prepares the necessary documents for the transaction:

    - certificate from the homeowners' association confirming no debts;

    - latest water and electricity bill receipts:

    - IBI (Impuesto de Bienes Inmuebles) annual property tax receipt. For typical apartments or houses, this annual tax paid to the local municipality usually ranges from €100 to €500;

    - property registry extract confirming the legal status of the property (proving that the property has no mortgage, seizures, or other restrictions);

    - bank certificate of the seller's cancelled mortgage if the seller bought with a loan, repaid it, but did not submit the certificate to the property registry.

  • On the day of the notary, the buyer's bank issues a check to the seller for the property's price. In Spain, payment for property is not typically done through a notary deposit but during the signing of the notarial purchase agreement via bank check. Less commonly, payment can be made by transfer, which is done online simultaneously with the notarial signing of the contract. The bank check is chargeable and must be ordered a few days in advance..

  • It is important to have a translator present at the notary who can translate the contract into the buyer's native language. Translation over another foreign language or using the seller/seller's representative as a translator is not allowed..

KEYS IN HAND!

However, our work does not end there! 

After the transaction, there are 30 days to submit a declaration to the tax office regarding the transaction and pay the notarial transaction state tax, which is 6.5% of the property's price in the Canary Islands. If the seller is a foreigner and non-resident, certain taxes must also be paid on their behalf, which are deducted from the property's price (property price - taxes = amount payable at the notary). We will explain this to the client in more detail when the specific case arises.

After paying this state tax, the contract can be submitted to the property registry, and the buyer registers the property in their name. The registration fee is usually between 200-400€.

In addition to these costs, it is customary for the buyer to pay all notary fees, typically ranging from 500-1000€.

If a suitable property is found among those we have for sale, our fee is already included in the sale price. If we search for a suitable property specifically for you, a 5% service fee is added to the price.

Once the taxes are paid, the next steps are:

  • Registering the ownership change with the local municipality

  • Entering into utility contracts (water, electricity, etc.)

  • Informing the homeowners' association of the ownership change

We recommend the new owner:

  • obtain home insurance

  • immediately also prepare inheritance documents

  • if the property is not purchased for permanent residence, think about who will maintain/guard/clean your investment while you are away

  • enter into a contract with a security company 

  • if you want to offer holiday accommodation, decide who will manage the service (check-in, check-out, cleaning, repairs, advertising, bookkeeping, and filing tax returns, holiday accommodation paperwork)

  • if you want to rent long-term, choose a real estate agency to find tenants and draft contracts

For more detailed interest and to order a personal Real Estate consultation contact: eike@tenerife24.ee or kontakteeru Tenerife24 office.