The 9 to do's when buying property in the Canary Islands
If you are a non-resident, it is best to let independent consultants help you with your property purchases in the Canary Islands. In your search for the ideal property, you may consider working with a real estate advisor. Real estate advisors know the region and the local property market, and they are experts in negotiating the best price for you. There are also a number of specific procedures and to do's involved in the purchase of real estate in Spain for which we advise you to call on the services of a legal advisor. The 9 to do's when buying property in the Canary Islands are discussed in this blog.
The 9 to do's when buying property in the Canary Islands
As a non-resident, you must have a NIE number in order to buy Spanish property. The Número de Identificación de Extranjero is a personal identification number that you can apply for at the Spanish Embassy in your country. If you wish, your legal advisor can obtain the number for you from the local authorities. However, you should be aware that it usually takes several weeks before you receive your NIE number.
In order to buy property in Spain, you will also need a Spanish bank account, as part of the purchase must be done through a Spanish bank account. The procedure for opening a bank account in Spain is relatively easy, but also for this purpose you can call upon the services of your advisor.
As soon as you have a NIE number and a Spanish bank account, you can start buying property in the Canary Islands as a foreigner. We recommend that you first sign a reservation contract (contrato de reserva) with the seller of the property. In this contract, the buyer and the seller agree on the time limit for signing the purchase contract. The reservation contract obliges the seller not to offer the property for sale until that time. The buyer will have to pay a reservation fee to the seller, but is given the opportunity to thoroughly inspect the material and legal condition of the property before proceeding with the actual purchase. The purchase price is already agreed in the contract, so it cannot be negotiated afterwards. To ensure that your rights as a buyer are adequately protected in the reservation contract, we recommend that you seek the assistance of a legal advisor.
Before you proceed to the actual purchase of the property, you must conclude a provisional sales and purchase agreement (contrato de compraventa) with the seller. This is a binding contract, so you should not sign it until you have absolute certainty about the good condition of the property. The conclusion of the provisional sales and purchase agreement comes with a second advance payment of 10% of the purchase price.
¨The deed of sale is concluded in the presence of a notary. After signing the contract, the notary will give you the keys to the property and a copy of the contract (copia simple). The original version of the notary contract will be sent to you by post afterwards.
Your legal advisor will of course assist you in drawing up the reservation contract, the provisional sales and purchase agreement and the deed of sale. Choose a legal advisor who speaks your language so that he can provide you with the relevant contracts and documents in your mother tongue. Canary Immo can provide you with references of legal firms active in your language. Contact us for more information via this link.
The 9 to do's when buying property in the Canary Islands
It is also advisable to consult with your legal advisor regarding inheritance taxes. Your advisor will discuss with you your options based on your personal situation. Because this is very situation-specific, there is little point in discussing each of the options here.
As mentioned earlier, the tasks of a notary in Spain are rather limited. As the new owner, you are responsible for the registration of your property in the Land Registry. You also have to submit the annual property tax return on your own initiative. We recommend that you let your legal representative take care of these formalities.
Finally, you also need to transfer the utilities of your new home to your name. You can have your legal representative take care of this as well.
We hope the 9 to do's when buying property in the Canary Islands have helped you. Make sure you read our blog about the costs of buying, owning and selling property in the Canary Islands and also our blog on why you should buy property in the Canary Islands and more specifically in Lanzarote and Fuerteventura.
SOURCES:
https://www.affidata.com/sh/huizen-te-koop/stappenplan-kopen-woning-spanje
https://www.confianz.be/2018/01/20/aankoop-van-een-woning-in-spanje/
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