If you’re thinking about buying property in Tenerife and you’re not from Spain, you’re not alone. Over the years, we’ve helped buyers from the UK, Ireland, Germany, Scandinavia, the U.S., and beyond make the move to this sun-soaked island, called Tenerife, whether it’s for a permanent home, a holiday base, or an investment.
The process isn’t overly complicated, but it’s very different from buying property in, say, the UK or Ireland. That’s why I’ve laid everything out clearly below, no fluff, no jargon, just real-world advice on how to buy property in Tenerife from someone who does this day in and day out.
Let’s walk through it step by step.
Choose your location and budget
Tenerife isn’t massive, but it does offer a surprising variety of lifestyles. Maybe you’d like to be near the beach, or perhaps you’d prefer a quiet village in the hills. Need to be close to international schools or hospitals?
Or are you drawn to year-round sunshine or a bit more greenery? Learn more about Living in Tenerife to find the best fit for your lifestyle.
Once you’ve decided where you’d like to live (or invest), make sure to work out your total budget — and I mean the complete cost. To help with your search, explore our Tenerife Property for Sale listings.
That includes:
- The property price
- Around 8–10% in buying costs (more on that below)
- Optional fees like lawyer’s costs or translation help
If you’re a cash buyer, things are simpler.
If you’re financing with a mortgage, speak to your bank or mortgage broker as early as possible, especially if you’re not a resident…this way, you can find out if you’re going to be eligible for a mortgage and how much a lender will lend you.
There’s nothing worse than thinking that you’re going to be able to buy this lovely property that you’ve seen, only to hit the ground with a massive bump, finding out that you can’t get enough money for it.
Get your NIE number
This is one of the first things you’ll need. The NIE (Número de Identificación de Extranjero) is a foreigner’s ID number, and you’ll need it to: apply for your NIE here
- Buy property
- Pay taxes
- Set up utilities
- Open a bank account in Spain
You can apply for this in Spain or through a Spanish consulate abroad. If you’re working with a local lawyer, they can handle this for you and if you give them power of attorney (more on that later), you won’t need to be here in person.
Make an offer and pay a reservation fee
Found the place you want? Great.
Your agent (hopefully us!) will submit your offer to the seller.
If it’s accepted, sometimes the next step is to pay a reservation fee, usually between €3,000 and €6,000.
This takes the property off the market while your lawyer carries out initial checks. It also gives you a bit of breathing space without worrying about other buyers jumping in.
It’s important to note, this fee is usually non-refundable unless there’s a legal issue with the property.
Hire a lawyer
You’re not required to have a lawyer, but I always recommend it, especially if you’re buying from abroad.
A good lawyer will:
- Confirm the seller legally owns the property
- Check there are no debts or embargoes
- Review building permissions and licences
- Handle the contracts
- Set up utilities after the sale
- Help with your tax obligations
They’ll also make sure that everything is properly translated and understood, just so you’re not signing something you don’t fully grasp.
Sign the private purchase contract
Once the lawyer gives the green light, you’ll sign the private purchase contract (known as the contrato de arras). This document outlines:
- The final agreed price
- Payment schedule
- Completion date
- Conditions of the sale
At this point, you’ll typically pay 10% of the purchase price, minus the reservation fee already paid if that was requested upfront.
This is a binding contract. If you pull out, you lose your deposit. If the seller pulls out, they must pay you double…this is Spanish law.
Completion day – sign at the notary
The final step is signing the escritura pública (public deed of sale) at the notary’s office. This is where the transaction becomes legally binding and official and maybe more importantly, when you receive the keys!.
At the notary, you (or your lawyer with power of attorney) will:
- Pay the remaining balance
- Sign the title deed
- Receive the keys
After this, the property is legally yours.
You’ll also receive a simple copy of the deed (known as the copia simple) right away, and the full registered version a few weeks later once it’s filed with the Land Registry.
Post-sale: registration, taxes, and utilities
After the sale, your lawyer or gestor will normally:
- Register the property in your name
- Pay the relevant taxes on your behalf
- Transfer utilities (electricity, water, waste collection, etc.)
- Set up direct debits for local tax payments
If you’ve bought a property in a community (such as an apartment block), they’ll also inform the community administrators so they can update their records about you being the new owner.
What are the costs involved?
Aside from the property price, most buyers should budget around 8–10% extra for associated costs, which include:
- Transfer tax (ITP): Usually 6.5% for resale properties
- Notary fees: Roughly €500 – €1,000 depending on the property
- Land Registry: Another €600 – €800 typically
- Legal fees: Anywhere from €1,000 – €2,000 depending on the lawyer
- Banking and admin costs if you’re using a mortgage
For a full breakdown and helpful tips, watch our detailed buying procedure video in Tenerife.
There are also annual costs to keep in mind, like IBI (local rates), rubbish collection tax, and community fees if applicable and insurance.
What about buying off-plan or new builds?
If you’re buying a new-build property directly from a developer:
- At the time of writing, you’ll pay 7% VAT (IGIC) instead of transfer tax mentioned above
- You may also pay stamp duty (AJD) of 1%
- Payments are often made in instalments during construction
These types of purchases can be a great option, but they come with their own set of considerations.
Make sure your lawyer checks the building licence, bank guarantees, and delivery timelines.
Can foreigners own property in Tenerife?
Yes — absolutely. There are no restrictions for foreign buyers. You do not need to be a resident of Spain or the EU. You don’t even need to be in the country during the process if you give your lawyer power of attorney.
That said, living in the property long-term is a separate issue. If you’re from outside the EU (e.g. the UK), the 90/180 day rule will apply unless you apply for a visa or residency. But ownership itself? Fully allowed.
Buying property in Tenerife as a foreign buyer can be smooth and secure, especially when you work with the right team. The key is preparation: understand the steps, get your paperwork in order, and surround yourself with people who know the system.
At Tenerife Property Group, we’ve helped buyers just like you navigate the process confidently – from the first property viewing to the final signature (and beyond).
If you’ve got questions, or you’re ready to start the journey, just let us know.
We’ll be really happy to guide you every step of the way.
Next Steps – Let’s Help You Get Started
Got questions? Need help narrowing down your options?
We’re always happy to chat. Call us, email us, or just send a message via [WhatsApp link/contact page].
You can also:
- Search Tenerife properties based on your preferences
- Download our free Buyer’s Checklist PDF
- Contact us for a free buyer consultation
Thanks for reading and we hope to welcome you to Tenerife soon.