If you’re dreaming about owning your own place in the sun in Tenerife, but you’re not an EU national, you may be thinking to yourself, “Can I buy a property in Tenerife even though I don’t live in the EU?” You’re in luck! The answer is a resounding “Yes!”
Maybe you’re a British or US citizen, in this short guide, we’ll break down everything you need to know about buying property in Tenerife as a third country national.
First off, let’s talk about visas. You’ll be happy to hear that, in general, you don’t need a visa to buy property in Tenerife. Whether you’re from the UK, the US, or in fact, any other non-EU country, you can purchase real estate without any special permission.
The potential problems arise if you plan to stay in Tenerife, or anywhere in the EU for that matter, for an extended period or make it your permanent residence.
If that’¡s your plan, then you’ll need to obtain a long-stay visa or residency permit. But, rest assured, the process of buying a property is relatively straightforward, even for non-EU nationals.
Now, are there any potential legal restrictions for third country nationals when buying or using the property they buy in Tenerife?
The good news is that there are no specific legal restrictions for non-EU nationals when it comes to purchasing property.
You can buy, rent out, or use your property as a holiday home, just like any other EU homeowner.
However, keep in mind that if you want to stay in Tenerife for more than 90 days within a 180-day period, you’ll need to apply for a non-lucrative visa, Golden Visa or one of the other visas that might be available to you.
As for tax differences between buyers from EU countries and third country nationals, there are a few key points to consider.
For example, non-EU nationals, including UK and US citizens, may be subject to a higher capital gains tax rate when selling a property in Tenerife.
As I write this article, EU citizens pay a 19% capital gains tax, whereas non-EU nationals currently pay up to 24%.
It’s also worth mentioning that inheritance and gift tax rates might be different for non-EU nationals compared to EU citizens.
These taxes are regulated by regional laws in Spain, so the Canary Islands have their own rules and can be subject to change, so it’s essential to consult a local tax expert to understand any potential differences for your specific situation.
In summary, third country nationals, including UK and US citizens, can definitely buy property in Tenerife without needing a visa or any special permission.
There are no significant legal restrictions when it comes to purchasing or using the property, but you’ll need some type of visa or permit for extended stays of 90 days within any rolling 180 days.
As for taxes, you should consider the differences compared to EU nationals, especially regarding capital gains tax, inheritance and gift tax rates. However, with the proper guidance and planning, you’ll be well on your way to owning a beautiful piece of Tenerife in no time!
So, if you’re asking yourself, “Can I buy a property in Tenerife even though I don’t live in the EU?”, don’t hesitate to start exploring your options with us at Signature.luxury estate agency.