FAQs About Buying Property in Tenerife

Everything You Need to Know Before Making Your Move. Investing in Tenerife real estate can be rewarding, whether you’re purchasing a vacation home, rental property, or permanent residence. Here are answers to the most frequently asked questions about buying property on this stunning Canary Island.

Can Foreigners Buy Property in Tenerife?

✅ Yes. Foreigners can buy property in Tenerife without restrictions.

👉 Required: for legal and financial transactions.

What Is an NIE and How Do I Get One?

The NIE (Número de Identidad de Extranjero) is your tax identification number in Spain.

Ways to apply:

• Local police station in Tenerife
• Spanish consulate in your home country
• Through a local lawyer acting on your behalf

What Additional Costs Should I Expect?

Beyond the purchase price, budget for:

• Transfer Tax: ~6.5% for resale properties
• Notary Fees: ~1% of property value
• Registration Fees: 0.5–1%
• Legal Fees: 1–2% of purchase price
• Mortgage Costs: Bank fees and property appraisal.

Is Financing Available for Non-Residents?

Yes, many Spanish banks provide mortgages. Typically:

• Up to 70% of appraised value
• Competitive interest rates
• Requirements: Proof of income, good credit, and NIE

Are There Restrictions on Renting Out My Property?

Yes, for short-term holiday rentals you need to:

• Obtain a tourism license (Vivienda Vacacional)
• Meet health and safety standards
• Register with the local council

⚠️ Failure to comply can result in fines.

Do I Need a Lawyer to Buy Property?

Not mandatory, but highly recommended. A lawyer will:

• Verify legal status of the property
• Check for debts or liens
• Review the contract for compliance with Spanish law

How Long Does the Buying Process Take?

⏳ Usually 1–3 months depending on financing and legal checks.

✔ Working with an agent and lawyer speeds things up.

What Taxes Do I Pay as a Property Owner?

• IBI (Property Tax): Annual, based on cadastral value
• Non-Resident Income Tax: For owners who don’t rent out
• Tourism Tax: Applies for short-term holiday rentals

Can I Buy Property Remotely?

Yes, with the help of a lawyer or via power of attorney. This is a common option for international buyers.

Why Is Tenerife a Good Place to Invest?

• Year-round tourism (300+ sunny days)
• Strong rental market
• Competitive property prices
• Beautiful climate, scenery, and high quality of life

Ready to Make Your Move?

Buying property in Tenerife is straightforward with the right guidance. Whether for a personal retreat or profitable investment, Tenerife real estate offers outstanding opportunities.