The process of buying property in Tenerife starts by choosing the right real estate agency. Tenerife’s property market is competitive, offering numerous options, but how do you choose the most reliable partner for buying property in Tenerife? The agency should meet these requirements:
- Professional real estate training in Spain, especially in Tenerife, with knowledge of local laws and Spanish. Relevant qualifications are important.
- Legal assistance with access to lawyers or notaries. For details on costs and fees, see our article: “Expenses and taxes for property purchase in Tenerife”.
- Banking experience to facilitate mortgage acquisition and account setup on favorable terms.
- User-friendly, updated website, with new listings regularly.
- Competitive pricing and service offerings, with a broad portfolio.
Perfect! You have a partner to help with purchasing and organizing property in Tenerife. Now, it’s essential to clarify what you’re looking for:
- Type of property (apartment, studio, villa, etc.)
- Number of rooms
- Location (proximity to the sea, neighborhoods, etc.)
- Purchase budget and the possibility of requesting a mortgage
- Personal preferences
Once you know what type of property you want, move on to selecting the best option. Be ready to commit time; the agent will arrange 4-6 viewings daily. Take notes on each viewing, as the information might blur over a few days, leading to poor decisions. The agent should provide an information sheet for each property. As they say, “Everything is known by comparison.”
After selecting your dream property, the next step is opening a bank account. The agent should explain the account requirements and bank policies, especially if you need a mortgage. The bank will require an income statement and employment certificate for international transfers; otherwise, funds may not be credited. You’ll have online access and the option to request a debit card.
Reservation and Verification: With the property selected and account opened, it’s time to sign the “Preliminary Agreement,” after which the property is withdrawn from sale. Here, the agency must ensure the property is free from debts or liens. The deposit is usually 10% of the purchase price, with up to three months to complete the payment or arrange the mortgage.
Consider issuing a Power of Attorney to an agent for managing processes to save time. It can be specific (to open an account, obtain NIE, etc.) or general (less advisable). A NIE (Foreigner Identification Number) is also required, which the agent can manage with you at the police station. This number is permanent, though the document lasts only three months.
Finally, it’s time for the crucial step of signing the Sales Deed (Escritura Pública) before a notary. If you requested a mortgage, a bank representative will be present to sign the contract. Payment is usually made via bank check, a safer method than transfer. Within a few weeks, you’ll receive a Land Registry extract confirming your ownership.
After signing, the agency can assist with changing utilities and municipal services into your name. See our article on “Property maintenance costs in Tenerife” for more details. We also help with furnishing your home and offer rental services if you wish to let out the property.
Contact Tenerife Alliance with any feedback at filip@tenerifealliance.com.
