Tenerife Property Buying Guide

Is There Anything Else To Pay?

Yes unfortunately there is, there are several costs that arise from the purchase of a property besides the asking price. Normally as a rule of thumb you should allow between 7% – 10% of the purchase price to cover these.

The Notary will charge a fee to prepare the Title Deeds and then there is also a fee for registering the property in the new owners name. You will also have to pay local tax known as I.G.I.C., this is 5% of the official value if you are purchasing a new property off a developer, but if you are buying a resale property, it is 6.5%. You have also got a document tax of 0.75%.

Plus Valia is another tax which is due and is based on the annual increase in value since the previous sale. The vendor under Spanish law is liable for this tax but it is common practise for the purchaser to be asked to pay this as part of the taxes and fees. The reason being is that the other taxes and fees are due when the Title Deeds are signed, however the Plus Valia can be due some time later, the vendor may have disappeared at this time. As Plus Valia is charged against the property, if the vendor does not pay you will be eventually liable anyway.

Your legal representative will be able to supply you with a break down of these taxes and fees including their own fees but as earlier stated 7% - 10% of the purchase price will cover everything. Your other associated costs then involve the property i.e. community fees, utility bills.