If you’re considering buying property in Tenerife, it’s vital to understand the complete financial picture. A common mistake is to only consider the purchase price; however, you should budget an additional 10% on top of the listed price. This extra amount will help cover essential costs and ensure a smooth transaction process.
Why You Need to Budget an Extra 10%
- Taxes: One of the most significant expenses when purchasing a property in Tenerife is the property transfer tax (ITP). This tax generally ranges from 6% to 10% of the property price, depending on various factors such as the property’s value and your residency status.
- Legal Fees: Engaging a qualified real estate lawyer is crucial for navigating the complexities of the property buying process in Spain. Legal fees typically range from 1% to 2% of the property’s price.
- Land Registry Fees: Once you purchase your property, it needs to be registered. The land registry fees usually amount to about 0.5% of the property value, ensuring your ownership is officially recognized.
- Notary Fees: A notary is essential to finalize your property transaction in Tenerife. Notary fees can range from 0.1% to 0.5% of the property price, adding to your overall expenses.
Conclusion: Be Prepared
Understanding these additional costs is crucial for anyone looking to invest in Tenerife real estate. By planning for these expenses, you’ll be better equipped to make informed decisions and avoid unexpected financial surprises. Whether you’re interested in a luxurious villa, a cozy apartment, or a charming townhouse, knowing the true cost of buying property in Tenerife is essential for a successful purchase.
30 questions in 30 days – 2 – How much does is costs to buy a property in Tenerife?
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