LEGAL GUIDE TO BUYING PROPERTY IN THE CANARY ISLANDS:

EXPERT ADVICE FROM GOLDACRE ESTATES

Obtaining good legal advice is essential when purchasing property anywhere, and this is equally important in the Canary Islands. While it is not absolutely necessary to hire a lawyer for property purchases in the Canary Islands—many local buyers confidently handle the paperwork and processes themselves, with support from GoldAcre Estates —we strongly advise overseas buyers to employ the services of a local lawyer—. For the best results, we recommend choosing a local lawyer who is based in the Canary Islands and speaks your language. Local lawyers possess in-depth knowledge of property law, taxes, and the property market in the Canaries, which can be invaluable during the purchase process. Hiring a foreign lawyer may deprive you of this local expertise.

CONDUCTING LEGAL CHECKS

Whether you or your lawyer handle the paperwork, it’s crucial to ensure that the property is purchased with full freehold title, free of any encumbrances, liens, charges, or debts. It’s also important to verify that all community fees and other contributions are up-to-date. GoldAcre Estates can recommend a number of respected local lawyers with whom we have worked closely for many years. These lawyers are completely independent of GoldAcre Estates, and you are, of course, free to choose any lawyer you prefer.

POWER OF ATTORNEY

You can grant Power of Attorney (POA) to your lawyer, which can reduce the need for frequent trips to the islands and ensure that all documents are signed promptly. However, it is advisable to give POA only to your lawyer, spouse, or someone you trust implicitly.

THE BUYING PROCESS

Once you decide to purchase a property, you will be required to sign a Purchase Contract. For overseas buyers, GoldAcre Estates provides this contract in both Spanish and with an English translation.

If English is not your first language, we can arrange a translation through your lawyer, though additional costs may apply. When you purchase the property, our highly professional administration team will inform you when the Purchase Contract should be signed—and the deposit amount to be paid at that stage.

FORMAL COMPLETION AND EXCHANGE

The formal completion and exchange take place in front of a Notary, where the final payment is made, and ownership is transferred to the new owner. The title deed is then sent to the Land Registry to be changed into the new owner’s name. A Notary is a legal professional with special training in a wide range of legal matters, including property transfers. Once a document is signed by a Notary, they are legally responsible for it and must record the details in the public records.

FINAL REGISTRATION

Final registration of the property could take a few months to process, but your lawyer will handle this on your behalf. They will also arrange for essential services such as utility accounts and Community to be set up in your name.

TAX GUIDE TO BUYING PROPERTY IN THE CANARY ISLANDS

ESSENTIAL INFORMATION ON TAXES WHEN PURCHASING PROPERTY WITH GOLDACRE ESTATES

While every government must raise taxes, the Canary Islands enjoy lower taxes compared to most of Europe due to their status as an EU Outermost Region. This status places the islands outside the European Union Value Added Tax (VAT) area, allowing them to set their own tax rates.

As a general rule of thumb, when purchasing property in the Canary Islands, we recommend as a maximum that should be budgeted for on top of the purchase price is an additional 10% to cover taxes and associated costs. If you’re taking out a Spanish mortgage, this amount may be slightly higher. For cash buyers, the overall costs will be slightly lower. The 10% guideline provides a quick and easy way to ensure you’re viewing real estate within your budget while searching for your ideal property.

Before you make a reservation deposit, GoldAcre Estates will provide you with a detailed, written breakdown of the exact costs involved, including all taxes and additional fees. This document will also outline financing options and the estimated cost of maintaining your property.