Buying a property – how does it work

Once the essential step has been taken: finding the ideal home in the sun of The Canary Islands, most of us ask ourselves the following question: “Now what? “ How do I go from saying: “That’s the One “ to “ Thank you for the Keys ? “. Below is a breakdown of the transaction, that our Staff will gladly lead you through and supervise as part of our customer care service

How much deposit needs to be put down to secure the purchase, depends on the type of property you’re looking to own. If it’s a resale, then generally 10% is requested up front, increasing to up to 25% if you’re buying a new property direct from the builder. Contracts then need to be drawn up clarifying the who, what, when and how’s of the agreement between both parties, such as the completion date and method of payment.

Before the deeds can be handed over however, all the receipts and necessary paperwork have to be checked to see that there are no debts outstanding on the property. This will include;

Our Qualified Staff will do all the Admin Aspect of it for YOU !!

• Obtaining a Nota Simple (clearing data from the registration office.)
• Checking that all I.B.I (local council rates) have been fully paid up to   date.
• Collecting the most recent electricity & water receipts signed and approved by the President of the community where you’re buying.
• Obtaining a copy of the deeds (Escritura).

You’ll need all the originals of these documents on the day of completion at the Notary’s office. The notary will refuse to sign the deeds unless it has been clearly stated that you were already aware that some receipts were missing. Once more, we will lead you by the hand through the entire process.

Taxes & Other Costs
In addition to the sales price, bear in mind that you, the purchaser, will also have to pay approximately 10% of the new declared value for a resale property, or approximately 6% if buying a new property. This is made up of the following taxes and fees:
* 6% ITP tax (Impuesto sobre Transmisiones Patrimoniales) when buying resale property, or 5% ITP plus 0.5% stamp duty if purchasing new property.
* Notary fees.
* Property registration fee.
* Plus valia (capital gains tax).
* If you buy in the name of a company you are also liable to pay IVA (VAT) or IGIC, the Canarian equivalent.