Buying in Tenerife: the true total cost of a property purchase in the Canary Islands.
What costs should be expected in addition to the purchase price?
Tenerife Real Estate Guide
Taxes, notary fees, lawyer fees, registration fees: the true total cost of buying property in the Canary Islands.
Introduction
When a buyer finds a property in Tenerife that suits them, the first question is often: "How much does it really cost?" The listed price is never the final price. Here's a complete breakdown of the costs to anticipate.
The first point to note is that the price shown is always excluding ITP or VAT.
Case 1: Costs for a resale property
ITP — Tax on inheritance transfers: 6.5% of the sale price.
AJD — Documented legal acts: approximately 0.75% of the price.
Notary fees: €600 to €1,200.
Registro de la Propiedad: €400 to €900.
Lawyer-Gestor: approximately 1% of the price.
Agency: usually €0 for the buyer.
Case 2: Costs for a new property
IGIC: 7% (Canary Islands equivalent of VAT).
AJD: 1%.
Notary fees: €600 to €1,200.
Registro de la Propiedad: €400 to €900.
Lawyer - Gestor: approximately 1% of the price.
Agency: usually €0 for the buyer.
Comparative table
Expense item | Resale property | Brand new |
ITP / IGIC | 6.5% | 7% |
AJD | 0.75% | 1% |
Notary | €600–1,200 | €600–1,200 |
Register | €400–900 | €400–900 |
Lawyer - Gestor | ~1% | ~1% |
Agency | €0 | €0 |
Indicative total | ≈ 8–9% | ≈ 9–10% |
Concrete example: you buy an existing property listed at €300,000
ITP: €19,500
AJD: €2,250
Notary fees: €900
Registration fee: €650
Lawyer - Gestor : €3,000
Total additional costs: ≈ €26,300
Points to consider
A lawyer or a gestoria (real estate agent) is essential to verify debts, permits, and the legal aspects of the property. In other countries, this is done by a notary, but in Spain, it is handled by specialist lawyers. Also, check agency fees and obtain your NIE (Foreigner Identification Number) before any purchase (your gestor can assist you with this).
Practical advice
By systematically setting aside approximately 10% of the purchase price, you will always cover all additional costs.
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