Thinking about buying a property in Tenerife? Whether you’re after a sun-drenched holiday home, a solid investment, or a place to retire, this guide will walk you through everything you need to know.
Why Buy Property in Tenerife?
Tenerife is one of those rare places that ticks a lot of boxes. Sunshine year-round? Check. Easy access to Europe? Yep. A laid-back lifestyle with a decent healthcare system, low crime, and lower living costs than many parts of mainland Europe? Absolutely.
For many of our clients, it starts with a holiday – then turns into something more permanent. Whether it’s for lifestyle, investment, or retirement, owning property here can be a smart move when done properly.
Can Foreigners Buy Property in Tenerife?
Yes. There are no restrictions on foreigners buying property in Tenerife or anywhere else in Spain. Whether you’re from the UK, Germany, Scandinavia, or beyond, you’re free to buy here.
The only legal requirement is that you obtain an NIE number (número de identificación de extranjero) – basically a foreigner’s ID number required for any official transaction in Spain. Your lawyer or agent can help you with that.
Step-by-Step Buying Process in Tenerife
1. Choose Your Area and Budget
Are you looking for a quiet rural retreat? Or a frontline apartment in a lively resort? Get clear on your priorities first.
2. Find a Trusted Estate Agent
Not all agents are created equal. Choose one who knows the market well, speaks your language, and is happy to explain the process. (That’s us, by the way.)
3. Secure Your NIE Number
You’ll need this to open a bank account and complete the purchase. Apply through the Spanish consulate or get one locally.
4. Make an Offer and Pay a Reservation Fee
Once you’ve found a property you love, a small reservation fee (often €3,000) will take it off the market while contracts are prepared.
5. Due Diligence and Contracts
Your lawyer will check ownership, debts, and licenses. Then comes the arras (private contract) and a deposit of around 10%.
6. Sign at the Notary
Final signing happens in front of a notary. You pay the balance, get the keys, and the property is officially yours.
Costs & Taxes You Need to Know
- Transfer Tax: Usually 6.5% on resale properties.
- Notary and Land Registry: Around 1-2% total.
- Legal Fees: Budget 1% or so.
- Banking/Valuation Fees (if using a mortgage).
- Ongoing Costs: Community fees, IBI (council tax), utilities.
It’s smart to allow for an extra 8-10% on top of the purchase price to cover all costs.
Where to Buy – Area Breakdown
Los Cristianos
Lively yet laid-back. Popular with expats and holidaymakers. Great for rental potential.
Costa Adeje
More upmarket. Golf courses, shopping centres, and luxury villas. A solid choice for lifestyle buyers.
La Caleta
Charming and quiet with a culinary edge. Property here comes at a premium but holds value well.
Las Americas
Great for the party scene with golden sandy beaches for the day and nightclubs for the evening, with plety of restaurants, bars and cafés for in between.
Legal Help and Representation
You should absolutely work with a qualified independent lawyer (not the seller’s). They will:
- Check title deeds
- Ensure no debts are attached to the property
- Handle contracts and payments
- Act as your power of attorney if you want them to
We’re happy to recommend a lawyer we trust.
Mortgages and Finance Options
Yes, non-residents can get a Spanish mortgage. You’ll usually need:
- 30-40% deposit
- Proof of income
- Bank statements and credit history
We can introduce you to a mortgage broker if needed.
Can I Rent Out My Property?
Short answer: Yes, but check local rules. If you want to rent on a short term basis, you’ll need to apply for a Vivienda Vacacional (Vv) licence.
Longer-term rentals (3+ months) are generally easier and don’t require a licence.
You’ll also need to:
- Register rental income for tax purposes
- Comply with community rules
We’ll guide you through this depending on your property.
Tips from a Local Agent on Avoiding Pitfalls
- Don’t skip legal checks even if the property looks like a bargain.
- Beware of off-plan deals without solid guarantees.
- Understand community rules if buying in a complex.
- Ask questions and make sure you get clear answers.
We’ve helped dozens of buyers through the process without nasty surprises. The key is planning ahead and working with professionals.
Why Work with Tenerife Property Group?
We’re not a big corporate agency. We’re a local, friendly team who knows the market, live here full-time, and genuinely enjoy helping people make smart property decisions.
Whether it’s your first purchase or your fifth, we’ll give you:
- Straightforward advice
- Regular updates
- Help with paperwork, lawyers, and banks
We know the system here inside out, and we’re always on your side.
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:
- Browse our latest listings
- Download our free Buyer’s Checklist PDF
- Book a 30-minute no-obligation Zoom chat
Thanks for reading and we hope to welcome you to Tenerife soon.
