When you buy a property in Tenerife, the listed price includes agency fees but there are still a few taxes and expenses you have to add to get the total cost of your investment.
As always, you will have to pay taxes on this purchase. At the moment, in the Canary Islands, there is a tax a 6,5% of the total price.
You will have to pay the Notary and the Registration fee so the property is officially at your name. You will also have to change the electricity and water contracts, to register at the townhall and the comunity when needed…
The total cost for all that shouldn’t be more than 2.500€.
At Home Finder Tenerife, we take care of all the administrative aspects of the purchase so you won’t have to do anything as we do it for you. Between 45 and 60 days after signing the Title Deeds, we will give you all the originals of the contracts, tax declaration, bills and give you back the difference. For example, if the total of the bills are 2.300€, we will refund you 200€.
3/ Mortgage costs
If you need a mortgage, take into consideration than on top of the commissions of the bank, you will have to pay the Notary for signing the mortgage and its inscription in the property registry. Your bank can give you the total cost of this operation. We can also recommend a few banks that speak english.
As an example, if you don’t need a morgage, for an apartment of 200.000€, you would have to pay in total
200.000 + 13.000 (taxes) + 2.500 (max fees) = 215.500€