When purchasing property in Tenerife, it’s essential to be aware of the taxes and fees associated with the transaction. The primary tax you will encounter is the Impuesto de Transmisiones Patrimoniales (IPT), which is currently set at six and a half percent of the property’s purchase price.
In addition to the IPT, there are other costs to consider, including land registry fees, notary fees, and lawyer fees. It is highly advisable to work with a qualified lawyer throughout the buying process to ensure compliance with all legal requirements and to protect your investment.
If you are buying a brand-new property in Tenerife, you will not be subject to the 6.5% IPT. Instead, you will pay the Impuesto General Indirecto Canario (IGIC), which is the Canarian value-added tax currently at seven percent.
By understanding these taxes and fees, you can better prepare for the financial aspects of buying property in Tenerife. If you have any questions about the buying process or need assistance navigating real estate in Tenerife, feel free to reach out. I’m here to help you make informed decisions and ensure a smooth transaction.