Will Taxes Be Due Once I Sell My Home In Spain?

If you have the status of a non-resident in Spain, there will be a tax due of 3 percent of selling price when you go to dispose of your property. These funds are sent to the Tax Authorities, but there are ways to recover what you have paid if the sale leaves you with a loss.

If you purchased your property for more than you were ultimately able to sell it for, the government in Spain will give you a refund in six months or less, though you have paid your 210 Model Tax each year. This represents the non-resident tax that owners need to pay Hacienda. Such amounts are determined by the home’s value.

“Plusvalia Municipal’ is a type of local assessment. Payment goes to the town hall, and the amount is ascertained based on:

* The land’s cadastral value on the date of ownership transfer.

* The number of years you have been the owner.

* A tax base and multiplier, each of which is found in the municipality’s by-laws.

Furthermore, if your home was initially purchased with a mortgage, it is necessary to pay the mortgage conclusion expenses so that the Registry can cancel the mortgage. This generally tends to run about €1,000.


Los Gigantes Is The Perfect Tenerife Resort

Los Gigantes

The incredible Acantilados de Los Gigantes cliffs, which are on Tenerife’s west coast, have to be seen to be believed. This rock wall plunges straight into the sea below. The beloved Los Gigantes resort is just a short distance away from these cliffs.


See More Of Los Gigantes

The Los Gigantes resort was first developed in the 60s and was expanded in the 70s. The seaside town is popular because of its close proximity to the cliffs. While there are larger resorts in the south, this resort isn’t as noisy and offers a more relaxing experience.

In the town’s marina, you’ll see plenty of activity throughout the day.

There are also plenty of eateries and shops. You’ll even find a smaller lido here! If you explore the town, you’ll find many places to dine and enjoy local delicacies and fresh fish, not forgetting the many bars offering you anything cold to quench that thirst.

The town’s primary beach is on the smaller side. It’s a distinctive looking beach thanks to the volcanic black sand that naturally occurs on the island. Some other resorts in the region import golden Sahara sand instead to make it more appealing to visitors.

When you’re on the beach, you’ll have a spectacular view of the Los Gigantes cliffs. You can also get a great view of the cliffs from three other locations in the village.

One such spot is along the coastal path. You’ll also find great views in the location above the sports club and at Mirador Archipenque.

These cliffs, which are known as “the cliffs of the giants,” are an incredible attraction you should absolutely see when you’re visiting the island of Tenerife. Even though you can see the cliffs from both the beach and the village itself, it will be easier for you to grasp the scale of these cliffs if you view them from a boat.

The cliffs range from 500 to 800 meters in height. It’s common for whale and dolphin watching tours to head into this area so that people have the opportunity to experience the majesty of these cliffs and see whales and dolphins in their natural habitat.

Tenerife’s ancient Guanche people believed that these cliffs were sacred. In fact, they believed that the cliffs signified the end of the world.

Over one third of all species of whales and dolphins make their way through the Canary Islands every year. You’ll be able to see many of these species from the Los Gigantes coastline. At the marina, you’ll find a wide range of whale and dolphin tours. These tours can provide an incredible experience you’ll remember long after your tour is over.


Spots To Visit In The Area

You may want to visit Puerto de Santiago, a nearby resort that’s within walking distance. This resort was once a fishing village and is bursting with charm. You may also want to stop by Isla Cangrejo, a natural swimming pool known as “Crab Island.” It’s located between the two resorts.

Whatever you decide, Los Gigantes will continue in popularity and its beauty attests to this.

Fuerteventura Property

Fuerteventura Real Estate Agents have a commitment to place within the reach of our customers, services that match and exceed their requirements, as well as ensuring that the products and services supplied comply with their purpose and legal requirements.

We aim to improve our communication channels across all areas of the Canary Islands Real Estate company as well as with our customers in order to understand the customers experience and through sharing information and best practice, ensure our service is the best possible at all times. Thus developing satisfied and loyal customers who are interested in buying Real Estate in Fuerteventura.

Real Estate in Fuerteventura focusses mainly in Corralejo (the North of the island) and in Calete de Fuste (the middle of the island). Our dedicated team, once you have registered an interest in buying property in the Canary Islands, will contact you to find out what type of property you are looking for and

fuerteventura Properties who can help you make your holiday arrangements during your next visit to the islands and arrange an appointment to discuss your dream home and financial options with one of the fully trained Sales Consultants and Financial Services experts.
Fuerteventura is the island of contrasts and that applies to property as well as the captivating scenery, of volcanic rugged terrain surrounding aqua frothy seas and it’s numerous black, white and golden fine sand beaches or the proud lush green palms that gently sway to and fro in the cavernous valleys, overshadowed by the proud dominating mountains that subtly change colour throughout the day as they are kissed by the warm rays of golden sunshine and floating flotsam of fluffy white cloud.

Once you have visited Fuerteventura and been beguiled by it’s natural beauty, the warmth and generosity of the people, and the year long clement weather conditions, we know you will want to visit us again and again, laying down your roots for the future. So let us be your guide to Fuerteventura and purchasing your very own dream home in Fuerteventura the sun.

Guide to Fuerteventura, Canary Islands:
Parque Natural de Corralejo y Lobos (nature reserve)
Los Lobos – a boat trip to the 6sq Km island and escape from everything.
Betancuria Museum of Archaeology and Ethnography
Tefia Craft Village

More Important Fuerteventura Facts:
Population: 30.000
Time difference to London – Time zone GMT/UTC: 0 hours
Climate – 20ºC (68ºF) in winter months and about 25ºC (77ºF) in the summer.


Lanzarote Guide

Lanzarote with it’s unique and alluring volcanic landscape, as well as it’s status as a UNESCO Biosphere Reserve, has for a long time attracted discerning visitors and investors. Lanzarote is very different from other canary islands. It is more careful in its development plans and has nurtured a well-managed tourist industry whilst remaining welcoming to new visitors and investors. Perhaps this is why it continues to be just a little bit more relaxed and exclusive.

Lanzarote has a matchless blend of fabulous sandy beaches and leisure activity. With temperatures averaging 20°c in winter and 27°in summer and with over 300 days of sunshine you can always enjoy the outdoor life, whether it be golfing, trekking, water sports, or cycling.

Being the home of Ironman, the hardest triathlon in the world, is an outstanding accolade for the islands near perfect climate. Eating out and shopping are also two of Lanzarote’s finest attractions with a wealth of excellent shops and restaurants across all of the resorts.

Lanzarote continues to attract investors not just from the UK but from around the world giving the island a rich diversity and truly cosmopolitan feel. Lanzarote offers a wide selection of property types, from luxurious villas to smart town houses from holiday apartments to charming old rural fincas. There is something to fit all budgets whether you are looking to invest here, live here or have a holiday home in the sun.

For the serious investor we have a large portfolio of exclusive new developments available ‘off plan‘ which can deliver substantial short-term gains. So with our superb knowledge of the island and its real estate opportunities let our agents in Lanzarote show you the finest selection of properties in the best areas to invest.


Lanzarote Property

Lanzarote has become the place to be seen within the Canary Islands. It boasts amazing beaches, spectacular views, great nightlife and unusual sporting activities. Lanzarote hosts the world famous Iron-man competition every year which attracts visitors from destinations as exotic as Hawaii, Jamaica and Tokyo.You can also scuba dive, paraglide and choose from many other activities to pass the sunny days.

Investment buyers have chosen Lanzarote for years now to invest their capital as the all year sun shine, rental market and increasing property prices make it an excellent investment. The main areas for investment being Playa Blanca and the Costa Teguise. The Costa Teguise boasts a charming golf course, beaches, mountain views, annual wind-surfing championship, water park and many other activities.

It is a popular resort with both the investor and holiday home purchasers alike. We currently offers excellent deals such as El Jablillo an “off-plan” development close to the golf course with superb 1 bed properties from €88.000. Contact us today and ask our friendly international staff for more details.

Playa Blanca has also fought strongly for its share of the investment market recently by building a top class marina called Marina Rubicon, it also boasts fabulous 5 star hotels, sandy beaches, 2 projected golf courses and top class restaurants, shops and other services. Lanzarote is the place to be seen in the Canary Islands.


Gran Canaria Guide

Gran Canaria, (although small – only 1,532 square kilometers) has it a widely varying topography, climate, flora and fauna. There are spiecies of animals indigenous to the archipelago, along with a rich tapestry of history.

Did you know for example, that Christopher Columbus stopped here in Gran Canaria to replenish supplies before setting off to find a new route to China – and inadvertently discovered America in the process! Indeed, in Las Palmas (the capitol city of Gran Canaria) you can still visit Casa Colon (The house of Columbus).

Although, of course Canarian history far preceeds this event! The original inhabitants of the island, (known as The Guanchees), were supercided by the Turks, and eventually, the Islands became collectively part of Spain.

Gran Canaria grows fruits and vegetables which are exported world wide, and the island specialises in many varieties including;- Avocadoes, Tomatoes, Bananas (probably the sweetest in the world, and known as Honey Bananas), sugar, Oranges, Lemons, Limes, Coffee, , the list goes on.. ..

On the southern tip of the island you will find the largest area of sand dunes anywhere in Europe – a veritable mini Sahara desert! (bearing in mind, we are only 115km from Africa – it’s hardly surprising that we have similar weather conditions in parts of the island). What is surprising however, is that while the sun beats down on the beaches, only 40 km inland, there could well be caps of snow on our highest peaks.

We also have large areas of pine forests, and then there are lakes dotted throughout the mountains, and tiny villages nestled in the most picturesque of settings, with views that stretch forever – Not my idea of barren! The south of the island is drier, while the north is much more verdant. In fact, there are 5 different temperate zones within the confines of this island alone.

Many text books and web pages in fact describe Gran Canaria as a Mini Continent! Much of the good weather we enjoy here, is actually a result of the trade winds (which somehow protect us from Most of natures anger), allowing year round ideal weather.

The average summer temperatures are around 24-25 degrees, whilst the winter drops to a rather chilly 18-19 degrees. Along with this rather enticing reason to live here, there are more benefits!

The W.H.O. (World Health Organization) published a report a few years ago, which stated that Gran Canaria has the healthiest air in the world! Although these temperatures are averages, we are far more likely to exceed the summer temperatures, than we are to fall lower than the average winter temperatures.

In fact, a few weeks ago, on top of the summer norms, we had a heatwave, a calima and a cerocco – which lifted the temperatures to a staggering 52 degrees in some parts of the island. Thank God, here in Gran Canaria, you are never that far from the sea or a pool for a cooling refreshing dip!.

Other sporting activities which can be enjoyed here in Gran Canaria, include; Golf (there are numerous courses, in immaculate condition scattered throughout the Island. In fact Spain’s first golf course was actually here – not on the Spanish mainland (which the locals tend to call ‘La Penninsular’).

You can also try your hand at Horse riding, hiking, mountain biking, quad biking, pot holing, climbing and of course absailing, paint ball, and something I myself am keen to try, which is hang-gliding.

When it comes to the evening, there is no shortage of choice when it comes to ‘what to do’. The island probably has one of the highest per capita ratios of restaurants to inhabitants that I’ve ever expirianced! And when you’re tired of the best filet steaks you’ve ever tasted, there’s still plenty to enjoy to while away the balmy evenings.

Whether your cup of tea is the local karaoke venue (most of which normally offer rather good cash prizes), or something a little more sophisticated such as the show which is performed nGran Canaria

Those wishing to discuss in more detail, just how much we can do to facilitate your purchase here in Gran Canaria, you could either call our freephone hotline number, or call in at either of our two offices on the island, one being in Playa del Ingles (Spain’s second largest holiday resort), or the other in the picturesque fishing village of Puerto Mogan.

Although both of these offices are situated in the south of the island, the properties that we have to offer cover the whole of Gran Canaria. So which ever part of the island you choose to call home, we can help bring your dreams to life. You may also be pleasantly surprised to find just how easy it is to purchase abroad, and our expert team staff members can advise you from a wealth of experience as to the best ways to deal with whatever may crop up unexpectedly!


Gran Canaria Property

Gran Canaria – a beautiful miniature continent in the middle of the azul blue Atlantic Ocean – a true paradise for sun, sand, sea and sangria lovers!!

Offering an area of only 1532 square meters it is truly magical that the island has three climate zones – continental, tropical and sub-tropic. Being a volcanic island, the scenery is spectacular. You will find the west coast and the centre of the island very dramatic with its surreal mountain peaks, stunning flora & fauna, turquoise mountain lakes, fantastic views and canarian towns with majestic cathedrals and beautiful original buildings that dates hundreds of years back.

The east and south coast is what has made Gran Canaria a very popular holiday destination, with beaches to die for and year around sunshine. With areas to suit everybody’s wishes and budgets, you will be spoiled for choice. There is something to do and enjoy for absolutely everyone!! The capital of Las Palmas at the north of the island is now a modern cosmopolitan city – a good mixture of original canarian charm and modern architecture, and has a population of approx. 480.000 inhabitants. This city is definitely to be explored.

Over the past 20 years the island has been discovered by all Europeans, and for some the dream of a life abroad has been realized. With properties to suit every pocket, the island has now got more than 10.000 ex-pats most commonly choosing the areas of Maspalomas, Puerto Rico, Puerto de Mogan and Playa del Ingles.

Many of all these different nationalities came to the island with very little knowledge to the Spanish language and traditions. In order to find their dream home they went for advice with the professionals and decided to purchase their future home or holiday home with us.

The company offers a wide range of properties in all sizes and cover the whole of Gran Canaria, in other words – something for everyone!! Based in the two main areas in the south (Playa del Ingles & Puerto de Mogan) and covering the main European languages, the quality and service is fantastic.

The Island has so much to offer whether it is for a week holiday, working out here, retiring or just simply live the lifestyle!


Tenerife Guide

Before the Reina Sofia airport in the South was constructed, it took a minimum 5-hour bus journey from the north airport to Los Cristianos, now with motorway connection, the journey time is 50 minutes. Making resorts more accessible. The resorts from North to South, dominated by Mount Teide’s national park, have expanded and developed along the coast so that now, they are joined together with one main ocean front road, and the hillsides have been developed with residential apartments, villas and rural hotels.

Playa de Las Americas, with its suburbs of Torviscas, San Eugenio and Troya, is without doubt the hunting ground for the sun seeker. The never-ending beaches with their sun lounges and parasols offer a varying range in water sports and activities. Our office is situated in front of the Las Vistas beach, between Las Americas and Los Cristianos.

Los Cristianos was a small fishing village, but it is now a major town with an international flavour. There are some first class restaurants along the narrow pedestrian walkways and a good selection of fashion and gift shops. The main ferry terminal in the south of Tenerife is based in Los Cristianos and there are daily connections to La Gomera and La Palma. The man made beaches that are lined with sun beds and parasols, provide safe swimming havens and there are showers and service facilities plus bars and cafes and for your safety there is a Red Cross beach control.

The Puerto Colon Marina is the starting point for most sea excursions and with a good choice in restaurants and entertainment bars, the port area does not go to sleep until the early hours. The main tourist attractions in the immediate area are The Aqua Water Park, Sky Park andAguilas del Teide Eagle Park, The world famous Loro Park, in Puerto del La Cruz, has started to construct another park here with an Indonesian theme, and it is hoped to be open within the next few years

Recently opened there is the new 18-hole Abama Golf Course, a championship course that has been constructed on the hillside overlooking the Atlantic Ocean, together with a 5* hotel complex. Recently played by ex president Bill Clinton. This course along with those in Adeje, Playa de Las Americas, Golf del Sur and Amarilla Golf & Country club, still have availability to purchase a quality home of a golf resort.

Callao Salvaje is an extremely popular residential area with a small pebble beach with local bars and restaurants etc. There is a good choice of individual villas, town houses and apartments and the main town of Adeje with its many shops and large supermarkets is about a 5 minutes drive away.

Fañabe, with its luxury apartment and villa developments, has attracted the affluent population of Europe, and the location has become the most expensive and sought after piece of real estate in the Canaries. There are still several new developments in the pipeline, and when the construction is completed, the already high prices for property here will find their own even higher level.The Madroñal is being developed with some spectacular villas and town houses. But everything comes at a price, and with off-plan prices for a 2-bedroom town house starting at around €325,000.

Roque del Conde, Torviscas Alto, enjoys some of the best Atlantic Ocean views in the south of the Island. With the exception of individual villa plots, construction is almost at an end, and with plot sizes for villas starting at 500m2, the plots range in price from €121,000. If you were looking to purchase a plot of land so that you can have a villa designed to your specification, here would be a good place to start.

Palm Mar was established some 30 years ago and there is a good selection in villas and apartments, where the local council and developers have invested heavily in the infrastructure. Some new commercial developments, a seawater pool and tennis courts are in the planning stage, and for sure, is the place to buy you retirement or holiday home now, in one of the various residential complexes, for example, Paraiso del Palm mar, Bahia de Menceyes and Laderas del Palm mar.


Tenerife Property

The largest of the Islands that make up the seven Canary Islands has always attracted tourists. It is a diverse landscape, from the lush green in the North to the stunning volcanic landscape of Mount Teide, the highest mountain in Spain, to the drier, hotter south. It is estimated that the volcanic landscape was formed around 30 million years ago.

Visitors are never short of places to go and things to do. Getting around is easy. The road system, in general, is good and well signposted. In the south of the Island, Playa de Las Americas and Los Cristianos are the usual vacation destinations, with a wide choice of apartments, villas and town houses. Palm Mar is an up and coming area situated in the next bay from Los Cristianos Real Estate properties for sale in tenerifeand where you can still purchase a prestigious property on Paraiso del Palm Mar and Bahia Menceyes amongst others.

Los Gigantes, situated further up the coast plays host to the most spectacular cliffs, formed by the volcano’s lava flow and is a quieter, greener area, popular with our older vacationers.

If you like water sports, you can try your hand at everything from a pedalo to scuba diving. Boat trips are popular with the children young and old to view the pods of whales and dolphins that inhabit the coastline. Windsurfing, wet bikes, sailing and deep-sea fishing are all available for the more energetic of our visitors.

If you want to get closer to nature, why not hire a bike or take one of the many and varied hiking trails that run throughout the Island. Jeep safaris, quad biking or horse riding are all other options to make a great holiday a memorable one or a wonderful start to a new life in the sun.

Tenerife is rich in culture and there are many old and beautiful buildings, churches and museums in the towns of La Oratava and La Laguna. Should you just want to chill out with the children, why not take a trip to one of the many parks available. The most well known, and loved, being the Loro Parque, situated near Puerto de la Cruz.

Don’t think that we have forgotten, you golfers. Tenerife provides some of the best courses around and most within a short driving distance of each other. Golf del sur and Amarilla golf, are just two courses, which still offer you the chance to own that golf course apartment.

If you’re planning on renting then please make sure you check this list of current holiday rental scam sites so that you avoid any potential loss.

Make sure you thoroughly research which Tenerife property agent is right for you before proceeding and once one is found, they might be able to help you find that dream home.



Canary Islands Property Investments

Buying Spanish property off plan with the intention for selling on prior to completion is an great form of investment, and has the potential to show good returns on your capital invested. However, like ALL forms of investment that offer higher than normal returns, there are always risks attached. It is for this reason that our investment group has worked hard to bring you the best property for sale in the Canary Islands.

The Primary Risk of Buying Canary Islands Property

Your property / contract is not sold, meaning that you will have to take title of the property, however, the final balance can be mortgaged, be aware though, this does though entail extra costs, like purchase taxes, lawyer’s and notary fees etc. on completion of your contract.

The moral of Buying Canary Islands Real Estate

If you are not in the financial position to take the title deeds of the property, and the property is not sold on, do not buy property for turnover!

Choose your Canary Islands Estate agent carefully

Is your agent still going to be around when you want to sell your property / contract on”? Most Agents talk of customer care, and after sales service, ours has been proven.

If you are buying property for sale in Spain for Turnover, always buy your unit unit at the beginning of the promotion with the first price release. Why?

You have first pick of the best available properties for sale at the best possible price – meaing that when you sell, you can maximise the profit obtained from the sale of the property.

Buying property for Turnover or for investment is a partnership. It is a partnership between your agent and you, the investor, because for every property you buy, your agent has the potential to make 2 sales provided that they are committed for the long term, because of this, we value trust and treat all our customers with the utmost respect and care, we are in for the long-term!

What are the financial benefits?

As a general rule, with the right development, you should see, conservatively, an estimated 15 to 20 % total capital growth, which translates to a potential 50% return on capital invested! In general, you should only investing about 30% of the original purchase price of the property.

Example: Capital cost 100,000; deposit 30,000; growth 15%
100,000 x 15% = 15,000;
Deposit 30,000 + return 15,000 = +50% and total initial investment returned
Original investment 30,000 + 15,000 = total return to investor once sold 45,000

The figures above are simplified for the purposes of the explaination, and should only be used for guidance, and are not a guarantee. Given the scenario above, you also need to discuss with your agent selling fees, tax liability, etc. If you would like to speak to one our in-house FREE financial services representatives, simply complete the contact form and our agent can guide you through the entire process.

The Timescales

How long should I have to tie my money up for, as a general rule?

You can expect for the money to be tied up for a minimum of 18 months to 2 years, however, this is though determined by the build programme of the developer of your property (which, by the way, your agent has no control over).

If you require any specific details about a development or would like to see what property for sale in Spain is hot at the moment for investment, you can contact us now.

Please note:

Like all investment opportunities, if you cannot afford to tie your capital up for a minimum of two years, do not do it. There is never a free lunch, despite what people would have you believe.


About the Canary Islands

If sun, sea and sand is what you are after, then the canary islands are the place for you.
This Beautiful group of islands, with a stunning year round climate, some of the best beaches of fine golden sand in Europe. The Canary Islands consist of 7 main islands (Gran Canaria, Fuerteventura, Lanzarote, Tenerife, La Palma, Gomera, Hierro) aswell as a few smaller ones (Alegranza, Graciosa, Montaña Clara, Roque del Este, Roque del Oeste und Lobos), all with starkly contrasting landscape and breathtaking scenery.

The Canary Islands are now one of the most popular tourist destinations on the planet, with flights to the Canary Islands regularly from most of the Major European cities. The booming tourist industry has lead to northern Europeans moving to the Canary Islands to live and retire making the Canary Islands very popular among foreign property buyers and investors.

Situated just 1120 km south of Spain and 112 km west of Morocco, the sand dunes of Fuerteventura, the cliffs of Tenerife, the Forests of La Gomera and the beaches of Fuerteventura are closer than you think with flights to the Canary Islands from Northen Europe coming more and more regular. The Canary Islands have lots of great investment property for sale, and because of the climate the good infrastructure and the tax free benefits, the canary islands are great places to buy property for sale abroad.

The privileged location of the Canary islands means that the primary recreational activities in the Canary Islands are water sports, like Scuba diving, surfing and windsurfing. Contact us if you would like more information about golf courses, international schools and shopping, these are important considerations when choosing an area to buy real estate property on the Canary Islands.

Once termed ‘the Fortunate Islands’ by the Romans, the Canary Islands were formed by massive volcanic forces about 30 million years ago, although the Islands’ history is shrouded in mystery. Some historians claim that the legendary continent Atlantis was located here, Christopher Columbus even stopped in the Canary Islands on his voyage of discovery to the New World.

However, through all the myths, the Canary Islands are still thought of as a garden of Eden or Alyssium. This idea has remained and today the Islands continue to attract visitors from all over the world. If you like the sound of buying property in the Canary Islands, contact us and speak to one of our area specialists.

So, If you are interested in property in the Canary Islands, you really can’t go wrong due to its popularity and great property price appreciation.


Canary Islands Property Buying Advice

Follow these rules for a successful purchase of property for sale in the Canary Islands or in Spain for that fact. First you must choose the right estate agent, following this, you must find a good, helpful lawyer.

Choosing your Estate Agent

In decisions as large as buying property for sale abroad, it is eddential to the success of your property purchase and your long term happiness that you find a fair, trustworthy and reputable agent. To ensure that you are shown the right properties for you for sale in that area, it is also important to get an agent with a lot of local experience and of course plenty of properties for you to look at. Your agent should be able to provide you with investment advice, local adice, prices, rental returns, area advice and so on, helping you to find the property that you have been looking for.

Your agent should provide you with information about all the local costs for property maintenance, like comunity fees, the Annual Real Estate Tax (1311), water and electricity rates, garbage collection, aswell as Property income and wealth tax asociated with buying your dream home in the Canary Islands.

If you find the property that you have been looking for, and make the decision to buy it, you will be asked for a reservation deposit to make sure that no-one else can buy the property, which is payable immediately. Contracts are then exchanged during a roughly 10-15 day waiting period, for which you should always seek professional guidance and advice.

Legal Advice and Assistance

At this point, to the stage where you are given the keys to your new home, your lawyer will deal with the many stages involved in the process of buying property in the Canary Islands. It is imperative that your lawyer speaks good english so that he can inform you of the legal requirements that have to be fulfilled to ensure that the process runs smoothly, and that the sale is Legal in every respect. For example, the property must be registered to your name, and your lawyer must check with the Land Registry that there are no mortgages associated with the property, charges, encumbances, debts or liabilities that may cause problems in the future.

Your lawyer should discuss terms with the vendor’s lawyer, which not only includes the price of the purchase but all the completion dates, forms of payment, furniture and any other details to do with the purchase of your property in the Canary Islands. The Reservation deposit is the first payment to be made, often in writing, then your lawyer will draw up the private contract which normally means a deposit fee of 10% of the price of the property on exchange of the contract, which is not refundable and is a guarantee that you will not back out of the deal. Equally, if the vendor backs out of the deal, you are entitled to the completion of the original contract.

On the happy day when you get given the keys to your new home, your lawyer should go to the public notary to sign the title deed with the final payment to complete the payment. After this, the Local Land Register will recieve a fax from the notary to change the owner details so that the property is not sold twice. Therefore, the notary and the land register act together to help you. Your lawyer will then inform you of the relevant taxes that you will have to pay to get your new property in the Canary Islands, then the title deed will be submitted to the Land Register and your name will be transferred to the utilities and services of the property.

Here is a list of the expenses that you will have to pay to buy your property in the sun:

1. Notary, who charges according to a fixed scale, his charges may range from 500 € to 600 €.
2. Land Registry, as a rule of thumb, 40% of what the Notary charges.

The Taxes :
1. If you are buying a re-sale property you are obliged to pay Transfer Tax (ITP) at 6%.
2. If you are buying a new property or a property in the course of construction from a promoter, developer or habitual trader, then you should pay VAT (IVA) at 7% plus Stamp Duty at 0,5%.
3. The VAT (IVA) rate increases to 16% if you are purchasing plots of land, commercial premises or garage spaces.
4. Plusvalia is a tax levied by the local Town Hall based on the particular area where the property is located, on the surface area of the land, on the catastral value and on the date of the previous title deed. This tax may range from a few thousand pesetas to as much as several million pesetas on larger properties with a lot of land. By law the vendor is obliged to pay this tax but it is common practise for the parties to negotiate on who is to assume this liability. Finally bear in mind that your lawyer will charge fees for his professional services, that normally will range from 1 % to 2 % of the price plus VAT (currently at 16%).

The Canary Islands: Is It Time To Make A Permanent Move?

For many people, it might be a distant dream, but with great communication and flight connections between a majority of destinations, it is easier than you might think to escape your working life’s hectic pace by moving abroad.

The Canary Islands meet many of the qualifications and make it the perfect setting for a higher quality working life or stress-free and happy retirement. There are seven islands for you to choose from, and we are going to provide you with a useful guide to some of the important practical and financial issues that you might not have considered yet.

Working in the Canary Islands

Brexit has motivated numerous individuals to move their businesses abroad. One favourite is the Canary Islands since it offers the most preference tax rates in all of Europe. The following is an overview of the most significant incentives:

Although the Canary Islands belong to the European Union, they are considered to be outside of the territorial scope subject to the Spanish value-added tax (VA). In addition, rather than the 21% Spanish VAT rate they have an IGIC 7% general rate.

Businesses that are established in the Canaries are able to benefit from tax credits for investing in Western African countries, and also for certain exporting activities (15% for certain advertising expenses and 15% for investments made in permanent establishments or incorporation of subsidiaries)

The Reserve for Investment (RIC) in the Canary Islands enables businesses to lower their taxable profits by up to 90% through reinvesting in certain Canary Island qualifying assets (limited companies and sole traders).

Businesses that are established within the Canary Islands might benefit from additional deductions compared to Spain’s general tax deduction system. They include innovation, development, and research, to acquiring fixed assets or film productions.


If you make national insurance contributions and register to work in Spain, you can receive the same state-run health care that Spanish nationals get. As a retired individual receiving a UK old age state pension, you may contact the Overseas Healthcare and request an S1 Form to register in Spain for free healthcare. The law protects access to healthcare by pregnant women and children.

If there are no means for you to receive cover for state-run healthcare, then there is a special pay-in scheme that is offered by regional health authorities in Spain. The public health insurance scheme is available nation-wide. A monthly fee must be paid to get access to state-run healthcare, and each autonomous region manages the scheme.

For individuals under the age of 65, the basic monthly fee costs €60 and for those 65 and older the fee is €157. However, there is no subsidy on prescriptions and you will have to pay 100% of your prescription costs. At this time this type of cover doesn’t provide holders with EHIC, so if you are planning on travelling, then you should consider getting private travel insurance. Check with your chosen region to make sure that the scheme is available there.

Retiring in the Canary Islands

If you would like to improve your life, then you might want to consider retiring abroad. Among expats searching for a retirement that offers both a sunny climate and low cost of living, Spain is very popular. Income tax might be higher due to having a lower personal allowance compared to the UK, however, your savings will still take you further than and provide you with a higher standard of living and comfortable lifestyle.

Canarian special zone (ZEC)

In January 2000 the European Commision authorised ZEC as a low tax zone for the Canary Islands. New Companies carrying out activities that the ZEC Consortium Board has authorised receive numerous benefits:

Reduced 4% Corporate Income Tax rate as opposed to the current 25% rate.

Exempt from Stamp Duty Tax and Property Transfer Tax.

Exemption from operations involving other ZEC companies and exempt from IGIC on imports (on both finished products or investment materials and raw materials).

Dividends that a ZEC company sents to the parent company located outside of Spain are exempt from having pay tax at the source. The International Double Taxation Agreement is applied at the destination.

ZEC company requirements:

Must be a new branch or company

One administrator at least must be residing in the Canary Islands

Invest a minimum of €50,000/€100,000 (depending on whether it is a smaller island or a capital island – Gran Canaria or Tenerife)

Create a minimum of three jobs/five jobs (depending on whether it is a small or large island, as above).


Buying Property In The Canary Islands – A Regional Overview

The perennial popularity of the Canary Islands as a tourist destination comes as no surprise. The islands offer a pleasant climate, outstanding beaches, natural beauty, and idyllic culture and architecture.

Thanks to affordable air passenger service tying the Canary Islands closer to Europe, the tourist economy is booming like never before. UK investors have grown particularly fond of buying Canary Island property for permanent relocation, holiday residence, or rental income. (Talk to us if you’re buying Canary Islands property and need help with holiday home insurance).

Are you just getting started with your island property search? Let us give you a handy rundown on some of the best destinations to consider in the Canaries.


Largest of the Canary Islands, Tenerife is also probably the most accessible. Multiple flights from every part of the UK arrive regularly on Tenerife. This is a superb place to buy a holiday home, as your personal retreat can also turn into a very profitable rental property when you’re not using it.

Playa de las Americas

This resort community is positively bursting with bars, nightlife, restaurants, and water sports, making it ideal for visitors who crave excitement on their holidays. If you’re looking for a slightly calmer ‘compromise’ sort of neighbourhood, consider San Eugenio Bajo. Located on the periphery of Playa de las Americas, this area is peaceful enough to unwind in but still conveniently located to all of the region’s attractions.

Los Cristianos

Just a little south of Las Americas, you’ll find this community packed with beachfront holiday apartment complexes. The extensive supply of nearby amenities makes this a superb area for holiday rental property. Los Cristianos is an extensive sheltered bay with two excellent beaches flanking its harbour. Watersports needs are met by the nearby Playa de las Vistas, and volcanic Mount Gauza is visible in the distance.
There are several reputable Los Cristianos estate agents who can provide you with expert advice about the location and the many complexes you can purchase a property from so do your research and utilise their services.


Spanning the stretch between Playa Paraiso and Playa Fanabe, Adeje is a popular destination offering both high-rise apartment blocks and low-rise townhouses. Accommodations are affordable and the community is noted for both its beaches and its nightlife.

Playa de las Teresitas / San Adres

These always-bustling destinations are definitely worth considering if you want to invest in rental property with plenty of guest demand. Prices are generally affordable, making these tourist hotspots quite profitable for canny property owners.


The most volcanically-active of the Canary Islands, Lanzarote is famous all over the world for its beautiful, exotic black sand beaches. Lanzarote has a long-running and carefully-protected reputation as the most exclusive of the Canaries. Thanks to restrictive building regulations, Lanzarote has far less high-density development than neighbouring islands. Residential properties on Lanzarote tend to follow the same simple style of unadorned white cubism, and buildings rising more than three floors are rare.

Puerto del Carmen

As the oldest and most fashionable resort on the island, Puerto del Carmen boasts a number of historic attractions. It has a beautiful old town, a picturesque fishing harbour, and six kilometres of beautiful beaches. Located just ten minutes from the nearest airport, Puerto del Carmen is a superb place to find some of Lanzarote’s most prestigious investment properties. Property values tend to be uniformly high and offer long-term stability, but bargains are available for sharp-eyed buyers.

Costa Teguise

Located on Lanzarote’s eastern side, Costa Teguise offers facilities like windsurfing schools, a water park, and an excellent golf course. There are plenty of bars, clubs, and restaurants, though overall the community’s nightlife is somewhat more subdued than that of Puerto del Carmen. Costa Teguise is especially popular for expatriates looking for a full-time residence in the Canaries or for those looking to purchase a rental apartment or villa.

Playa Blanca

A half-hour’s drive from the airport, on the island’s southern tip, the fully-featured tourist community of Playa Blanca offers many attractions. It has outstanding beaches and restaurants, and the Papgayo Beach resort lies just a few minutes outside the town. Just isolated enough to be exclusive, Playa Blanca has more than enough amenities to satisfy even the most demanding visitor.


Fuerteventura boasts some of the very finest seaside terrain in the Canary Islands. Its pristine white beaches are lapped by clear turquoise seas. Fuerteventura is also attractive because it is one of the Canaries’ least-commercialised destinations. Expatriates tend to concentration on resort communities like Corralejo’s Caleta de Fuste. Investors will find no shortage of property opportunities, running the gamut from luxury villas to studio apartments.


At the north end of the island, Corralejo is well known for its strong rental prospects. The Caleta de Fuste resort is particularly popular with investors. It’s located no more than ten minutes away from outstanding beaches and shopping districts. The resort includes tennis courts, a pool, and a gym in order to make it more attractive for holiday rentals. The nearby Fuerteventura Golf Resort is also an excellent investment target. Corralejo is an outstanding holiday community, so this area is particularly well-suited to purchasing rental property.

Gran Canaria

Don’t be misled by the island’s name; Gran Canaria is actually the Canaries’ third-largest island. Where it reigns supreme is in terms of population. Almost 50 percent of the Islands’ population lives on Gran Canaria. The island features surprisingly diverse terrain from the verdant north to the desert south and the mountainous interior in between. Gran Canaria offers an enormous variety of activities to go along with its settings, covering attractions like hiking and riding as well as the common water sports and beach-going.

Las Palmas

A thriving commercial centre, Las Palmas includes many different neighbourhoods. Holiday and investment properties are available at every size and level of luxury. The sheer variety and vitality of the city is its greatest attraction, but the beaches at Playa de las Canteras are also always popular. Nicely-located property anywhere in Las Palmas presents excellent profit potential, and the city is equally attractive for relocation, rental ownership, or holiday residence.


Known as Gran Canaria’s version of Beverly Hills, Meloneras is an extremely luxurious community. It’s conveniently located near Playa del Ingles and Maspalomas, and there are also tons of high-end options for shopping, dining, and drinking in the vicinity. Meloneras’s gorgeous 18-hole golf course with its spectacular views also makes the area especially attractive to golf-minded visitors. It takes a significant amount of money to invest in Meloneras property, but the returns are also greater than normal.

Puerto de las Nieves

Puerto de las Nieves, clinging tight to the northern end of the island, is one of Gran Canaria’s less-developed communities. The town has a harbour, but the population is low and the coastline is wild and natural. This is the perfect area for nature-minded visitors. The surrounding highlands offer countless superb hiking trails. For investors the area’s affordable property prices are particularly attractive; it’s one of the best parts of the island for budget-conscious buyers.