Inmobiliaria Steinert Invest S.L. - Puerto de la Cruz - Teneriffa / Kanarische Inseln Real Estate Offers in Tenerife

In General

• The property must be free of charges, encumbrances, tenants or rights of third persons. this may be proved be a recent extract from the Land Registry (not older than 10 days), which at the same time blocks the Land Registry for this period of time (as substitution for a convey note).

• The property must be up to date with: payment for electricity, water, telephone, rubbish collection essential: community payments and urbanisation costs (comunidad) and rates for the Town Hall (Contribución Urbana or IBI) and a  registered energy certificate

• This has to be proved by the seller before signature of Notary Title Deed, with the corresponding receipts, as well as the last tax declaration.

• Upon purchase of real estate from a Spanish citizen, a firm registered in Spain or a foreigner resident in Spain, a certificate of capital transfer of the purchase price will have to be given.

• If the seller is a non-resident foreigner (not registered in Tenerife with his first domicile), this certificate is not necessary. Anyhow you will have to pay attention to the fact that *3 % of the official purchase price will have to be retained for possible benefit taxes from the sale, if the property has not been bought by its actual owner before 01/01/1987.

• The purchaser and the seller need a tax identification number for non-residents, this is a N.I.E. number, .

Costs of sale:

• 3 % retención (non-resident tax)

• plusvalía (urban value gain tax, will be charged on the soil of the property and depends on the period of time the seller owned this property
  - commission charge
  - gain tax (for this please contact a tax consultant)

Costs of purchase:

• Land transfer tax 6,5 % of the official purchase price

• Notary and Land Registry approx. 2 % of the official purchase price

• costs for change of name in contracts, such as water, electricity, rubbish collection, telephone and taxes