Gazdasági Ismeretek | Befektetés, Tőzsde » Everything You Need to Know Before Buying Property in Tenerife

Everything you need to know before buying property in Tenerife HONESTY, EXPERIENCE AND SIMPLICITY 1- NIE AND BANK ACCOUNT The NIE in Spain is a unique identification number given to foreigners. It is a unique personal number that will be used to identify you on all official documents. If you want to buy property in Tenerife, you will need to have one. There are two types of NIE: the white NIE for non-residents and the green NIE for residents. In order to obtain either one, you will have to go to the nearest administration that issues these kinds of documents (e.g the police of Los Cristianos or the "ayuntamiento" of Adeje). Another requirement for buying a property in Tenerife is to have a bank account. Opening a bank account in Spain is free All you have to do is walk through the door of one of the many available banks. Also note that: If you wish, we would be happy to guide you through these steps, in order to help you save time and make your life easier. 2- LOANS

IN SPANISH BANKS When defining your budget for the property of your dreams, you must take into account the following: if you are not a Canarian resident, you can expect a loan from a Spanish bank of up to 50% or 60% of the value of the property. In some cases, the financing can reach 70% of the value of the property. 3- THE ROLE OF THE LAWYER In Spain, the lawyer plays a very important role in the process of buying property. Although it is not required to use a lawyer, we strongly recommend it. It is the lawyer who will ensure that the property is free of debts In Spain, debts related to property (taxes, community charges, etc) follow the property, not the person. In other words, without prior verification, you could acquire a property with debts still attached to it. As a result, when you become the owner, you also inherit those debts. It is therefore the lawyer’s duty to look after your affairs, check that everything is in order and draw up the contracts. Again, if you wish: Our

teams would be more than happy to accompany you in this process and help you put together your financing file. We also have privileged relationships with certain banks, and this can facilitate the process in some cases 4- HAVE YOU FOUND THE PROPERTY OF YOUR DREAMS? LETS GO THROUGH THE BUYING PROCESS STEP BY STEP: 1. Reserving your property (so that it can be taken off the market): to reserve a certain property, you will need to sign a contract of sale (the "compraventa"). You will also have to pay a deposit of 10% of the total amount of the purchase. This deposit can be paid into the agencys account or into the lawyers account. 2. Obtaining the NIE and opening a bank account in a Spanish bank: you will then need to obtain the NIE and open a bank account. At Smart Property Tenerife we can help you with all these formalities. 3. Nota Simple and verification: during the second step mentioned above, the lawyer obtains a "Nota Simple" from the land registry to verify

that the property is debt-free and that everything is in order. 4. Possible financing: again, if you wish to apply for a loan at a Spanish bank, you can count on us to help facilitate the process. 5. Signature of deeds in the presence of a notary Most properties are sold by real estate agents. As there is no real exclusivity, several agencies sometimes have the right to sell the same property. Thus, a certain property could be offered at a different price from one agency to the next. It is also worth noting that most properties are sold furnished 5- FEES, TAXES, CHARGES. Your lawyer or agent will also need to have sufficient funds to cover the taxes and costs of the transaction. These costs can be broken down as follows: 1) Transfer tax = 6.5% of the sales price 2) Notary fees and land registration: +/- 2.000€ 3) Legal fees: between 1500 and 2000€ Out of a sum total of 200.000€ this represents approximately 8% For a new property of which you would be the first owner: 1) the

transmission tax is 0.75% 2) As of 1 July 2012, you also pay 7% IGIC (VAT). a total of 7.75%, increasing your costs by 125% Recurring costs: Like anywhere else in the world you will have certain ongoing costs such as water, electricity and waste disposal. If you buy into a complex you will also pay the community fee, which covers pool maintenance, lifts and gardens in the communal areas. After all of this, all you have to do is relax and enjoy your new property. If you already have a well-defined budget, do not hesitate to contact us for a precise assessment of all the costs relating to the purchase of your property in Tenerife. We will be happy to help you. For more information and inquiries, please find our contact details below. CONTACTS + 34 630 932 339 Las Cancelas 38679 Adeje (Santa Cruz de Tenerife) info@smartpropertytenerife.com www.smartpropertytenerifecom 02