Ziegel
Buying guide · Canary Islands

Buying property in the Canary Islands as a foreigner

What you need, in what order and who does what, from the NIE to the keys. Written for buyers from the UK looking in Tenerife or Gran Canaria.

The steps

  1. Get your NIE

    The NIE is the identification number for foreigners in Spain. You need it to sign at the notary, pay the taxes of the purchase and set up utilities. You can apply through a Spanish consulate in the UK (Spanish Ministry of Foreign Affairs) or, in Spain, with an appointment at the Policía Nacional. Start early: it is the step that most often delays a purchase.

  2. Open a Spanish bank account

    It is not strictly compulsory, but in practice you will want one to pay the purchase, the taxes, the community of owners and the bills once you own the home.

  3. Set your budget, costs included

    On top of the price there are the taxes of the purchase, the notary, the Land Registry and, if you take a mortgage, the bank's costs. If you need finance, ask for a mortgage study before you start viewing: it tells you what you can really spend.

  4. Find the home and make an offer

    Your agent arranges the viewings and, before you commit, we check the Land Registry extract (nota simple): who owns the home, whether it has a mortgage or other charges, and that it matches what is being sold. We also ask for the energy performance certificate and the community of owners' certificate of no debts.

  5. Sign the deposit contract (arras)

    Once the offer is accepted, buyer and seller usually sign a deposit contract. In the most common type, if the buyer walks away they lose the deposit, and if the seller walks away they return it doubled. Read it carefully: it sets the price, the date for completion and what happens if something goes wrong.

  6. Complete at the notary

    The sale is signed as a public deed (escritura) before a Spanish notary, who checks identities, the NIE, the payment and the property's situation. If you do not speak Spanish, the notary will make sure you understand the deed, with an interpreter or a translation. You can also sign through someone else with a power of attorney.

  7. Pay the taxes and register the home

    After completion, the purchase tax is paid to the Agencia Tributaria Canaria and the deed is registered at the Land Registry in your name. This is what protects your ownership against third parties.

Taxes and costs

The Canary Islands have their own tax system: there is no VAT, and the taxes on buying a home are set by the Canary Islands Government. We do not quote rates here because they change; the official ones are on the Agencia Tributaria Canaria and Agencia Tributaria websites.

Resale home

You pay the property transfer tax (ITP), which in the Canary Islands is set by the Canary Islands Government.

New build

You pay the Canary Islands indirect tax (IGIC), which replaces VAT in the islands, plus stamp duty (AJD) on the deed.

Every year, as an owner

The municipal property tax (IBI), the community of owners' fees and, as a non-resident, the Spanish non-resident income tax, which applies even if you do not rent the home out. If you let it, that income is declared too.

Besides the taxes, budget for the notary, the Land Registry and, with a mortgage, the bank's costs and valuation. Our agent goes through them with you for the specific home before you make an offer.

How we help

Ziegel is an estate agency with its own offices in Gran Canaria, Tenerife and Madrid. An English-speaking agent looks after your search, the viewings and the paperwork, and stays with you up to the notary. Through our own MLS, where agents from all our offices share buyers and sellers, you also see homes listed by other Ziegel offices, and our legal team reviews the documents of every sale.

See what is for sale now in Tenerife, south Tenerife, Gran Canaria and south Gran Canaria.

Tell us what you are looking for

An English-speaking agent from our Tenerife or Gran Canaria office will contact you, with homes from our own listings and from our MLS.

Island
Type of home
When would you like to buy?

Frequently asked questions

Can a UK citizen buy property in the Canary Islands after Brexit?

Yes. Brexit did not stop British buyers from purchasing in Spain. What changed is residence: owning a home does not give you the right to live here, and stays follow the rules for non-EU citizens. The UK Government keeps an up-to-date guide on living in Spain.

How much are the taxes when buying in the Canary Islands?

It depends on whether the home is a resale (property transfer tax, ITP) or a new build (IGIC plus stamp duty). The rates are set by the Canary Islands Government and can change, so check them on the Agencia Tributaria Canaria website before you make an offer.

Can I get a mortgage as a non-resident?

Spanish banks do lend to non-residents, usually on different terms from residents. We work with partner mortgage brokers, OPENICI and REALISTA. Their study is free; if you then decide to hire the broker, there is a fee that the broker quotes you. In many cases the savings over the life of the loan make up for it, but run the numbers for your own case.

Do I need my own lawyer?

You can hire one, and many foreign buyers do. Our legal team prepares and reviews the documents of every sale we handle, and we are happy to work alongside your lawyer.

Do I have to be in Spain to complete?

Not necessarily. You can sign at the notary in person or give a power of attorney to someone you trust. Ask us early so the power of attorney is ready in time.

Can I rent the home out to holidaymakers?

Only if the property can get the holiday rental registration it needs. That depends on Canary Islands rules, which have recently become stricter, on the municipality and on the rules of the community of owners. Ask us to check a specific home before you make an offer.