Buying Costs in Tenerife

We have been asked many times, what are the costs associated with the purchase of a property in Tenerife? In Tenerife, fees and taxes typically amount to about 10% of the purchase price.

The main costs when buying a property in Tenerife:

Purchase Tax (Stamp Duty) - 6.5% for a resale property and 7% for new build.
Notary fees - around 600€-1000€ - depending on the property
Land Registry Fee - around 400€-800€
Legal Advisor/Gestor fee - around 2000€ but varies depending on the property
Bank Mortgage & Valuation fees - depends on the bank (Mortgage Direct Advice)

Buying with a mortgage

Costs associated with financing a Spanish real estate purchase can range widely depending on factors such as the purchese price, the property's location, the expertise of the consultants (lawyers, brokers, agents, etc.), and the terms of the transaction agreed with the seller or the estate agency. However, a range of 10%-15% of the purchase price is a reasonable estimate.
When you open an account with certain lenders, lawyers or brokers, you may be required to pay an initial minimum deposit or fee. So, the percentage of costs to the property price can be much more for less expensive properties. A mortgage might not be the most economical option for homes purchased at lower price.
For more information contact a mortgage broker experienced in the complexity of the Spanish mortgage and real estate market. Mortgage Direct have a team of internationally qualified mortgage advisers and are devoted to achieving exclusive mortgage conditions, therefore easing the mortgage process ensuring profitable and safe investments.