Your “Getting Started” Guide to the Canary Islands Property Market Thank you for trusting Dream Homes Tenerife with your real estate journey.
Whether you are looking for a sunset-facing terrace in Los Gigantes or a high-yield investment in Costa Adeje, this guide outlines the roadmap we will follow together.
Phase 1: Preparation & Planning
Before we view a single property, we ensure your foundation is solid.
The NIE Number: Your first step. This is your Spanish tax ID, required for everything from opening a bank account to signing a deed. Proof of Funds: If you are a cash buyer, ensure your funds are accessible. If you require a mortgage, we will connect you with a local broker or bank to see your possibility of obtaining the best deal.
Phase 2: The Search & Selection
We filter the market so you don’t have to.
Curated Viewings: We arrange private tours (physical or virtual) of properties that meet our strict criteria.
The “Hidden” Market: As local experts, we often have access to properties before they hit the major portals.
Neighborhood Insight: We provide the “local’s view”—noise levels, upcoming construction, and community vibes.
Phase 3: Due Diligence & The Offer
In Spain, the legal checks are the most critical part of the process.
Nota Simple: We verify the property’s legal status, ensuring there are no hidden debts, liens, or “embargos.”
The Arras Contract: Once an offer is accepted, you will sign a deposit contract (usually 10% of the price). This legally binds both parties to the sale.
Compliance: We check for the Cédula de Habitabilidad (Habitation Certificate) and Energy Certificates.
Phase 4: The Notary & Completion
The final step of your journey.
Signing the Escritura: The final deed is signed in front of a Spanish Notary.
Key Handover: Once the funds are transferred and the Notary stamps the deed, the keys are yours.
Tax Settlement: You have 30 days to pay the associated taxes. Don’t worry—we assist with the paperwork.
Estimated Closing Costs in Tenerife
As a general rule, you should budget approximately 10% above the purchase price for:
ITP Tax (Property Transfer Tax): Currently 6.5% for resale properties.
IGIC (VAT): 7% for new builds.
Notary & Registry Fees: Usually between €1,100 – €1,800.
Legal Fees: Professional representation to protect your interests.