A handshake on a sea-view apartment in Los Cristianos binds nobody in Spain. A private contract with a 10% deposit does, and a deed signed before a notary finishes the job. Between those two documents sit a tax number, a lawyer and a short list of checks that decide how smooth your purchase will be.
From First Offer to Signed Deed: The Order of a Tenerife Purchase
A foreign buyer obtains an NIE tax number, makes an offer, runs legal checks, signs the contrato de arras with a 10% deposit, completes at the notary with the escritura pública, and then registers the title and pays the taxes. Your lawyer can handle most of these steps under a power of attorney, so you do not need to be on the island for each one.
Preparing for Buying the Property in Tenerife: NIE, Lawyer and Bank
The NIE (Número de Identidad de Extranjero) is the Spanish tax ID for foreigners. You need it to buy, to open a bank account and to sign the deed. You can apply at a Spanish consulate in your home country, in person in Spain, or through your lawyer with a power of attorney (poder notarial). The Spanish Interior Ministry’s NIE page lists the documents: a signed application form, a full passport copy and a statement of your reasons for requesting the number. Start early, because nothing else can be signed without it.
Hire your own independent lawyer (abogado). The seller’s agent and lawyer work for the seller, and many Spanish purchases go ahead with no legal check at all.
A Spanish bank account covers the fund transfer, local taxes and utility bills, and many buyers open one through their lawyer under the same power of attorney. Exchange margins and transfer fees add up on a large payment, so compare quotes from your bank and a specialist currency broker. Tenerife News also explains currency in Spain.
Reservation, Offer and Legal Checks
Offers start verbally and move to a written oferta de compra that states the price and creates no obligation. Many buyers then sign an optional reservation agreement (reserva de compra), which takes the home off the market for a short period in exchange for a deposit of about 1%.
While the reservation runs, your lawyer pulls the nota simple from the Registro de la Propiedad and checks:
- Ownership: the seller holds clear title to what is being sold
- Debts: in Spain debts follow the property, so an unpaid mortgage, tax or community fee can pass to you
- Licences: the building has its licence of first occupation, and any extension or pool was built legally
- Community: service charges are paid and no special levy is pending
Contrato de Arras: The Step That Binds
The contrato de arras is a private purchase contract. It fixes the price, the payment schedule, the completion date and the furniture and fittings included in the sale. You pay a 10% deposit on signing. The completion deadline is legally binding and is usually set around two months out, so confirm that it leaves enough time for transfers or a mortgage.
The common version, arras penitenciales, lets either side withdraw at a price. If you pull out, you lose the deposit. If the seller pulls out, they return double. Spanish buying guides describe three kinds of arras with different withdrawal rules, so ask your lawyer which one sits in your draft before any money moves.
Escritura Pública: Completion at the Notary
The escritura is the public deed of sale. It is signed in a notary’s office in Tenerife before a notario, a neutral state official who reads the deed aloud. You attend, or your lawyer signs for you. The balance is usually paid with a banker’s draft (cheque bancario), and banks can charge for issuing one, with around 0.5% quoted and open to negotiation. Ownership passes at signing, the keys change hands and you receive a simple copy of the deed.
If the seller lives outside Spain, the buyer retains 3% of the price and pays it to the tax agency on Form 211 within one month of the transfer. The sum counts toward the seller’s tax on the sale, and an unpaid amount can be claimed against the home you bought, so ask your lawyer to confirm it went in. The tax agency publishes its Form 211 instructions online.
The notary reads in Spanish. Buyers who do not read it well gain from seeing the paperwork in English before the appointment. Spanish-to-English translation of the draft deed, the nota simple and the arras contract lets you bring questions to your lawyer in advance, and a provider such as Elmura Linguistics can supply it. Your lawyer still confirms what each clause means legally.
What Buying Costs on Top of the Price
Buying the property in Tenerife follows Canarian tax rules. Resale homes pay a regional transfer tax (ITP), and new builds pay IGIC, the Canary Islands counterpart of VAT.
| Cost | Typical rate | Applies to |
|---|---|---|
| Transfer tax (ITP) | 6.5% | Resale homes |
| IGIC | 7% | New builds |
| Stamp duty (AJD) | About 0.75% | New builds |
| Notary fees | 0.5% to 1% | All purchases |
| Land Registry fees | 0.5% to 1% | All purchases |
| Lawyer | About 1% plus IGIC | All purchases |
| Gestoría | From about €100 | Paperwork after signing |
ITP is calculated on the higher of the sale price and the cadastral reference value. A reduced 5% applies to a main home up to €200,000, so second-home buyers should budget the general rate. Added together, most purchases need roughly 9% to 11% on top of the price. Guides written for the Costa del Sol quote 10% to 15%, partly because taxes there run higher.
After Signing: Registration and Utilities
Your lawyer or gestor files the transfer tax, lodges the deed at the Land Registry so the title shows your name, registers you for council taxes and community charges, and moves the utility contracts into your name.
Frequently Asked Questions
How long does a purchase take from agreed offer to keys?
Agents on the Spanish coast quote roughly 6 to 12 weeks for a cash purchase and 8 to 16 weeks with a Spanish mortgage, since the bank adds valuation and underwriting time. A clean resale title moves faster than a new build awaiting its final licence.
Does buying a home in Tenerife give me residency?
Ownership and residency are separate matters. A purchase carries no residency rights, so non-EU buyers who plan to live on the island need a visa or residence route of their own.
Is the proposed 100% tax on non-EU buyers in force?
The proposal stalled in parliament in March 2026 and, going by available reporting, has not become law. It targets non-EU, non-resident buyers, so confirm the current position with your lawyer before signing the arras.
Can I rent the home out to holiday guests?
Holiday letting rules in Spain have tightened, and Tenerife is among the places affected. Read Tenerife News on the holiday rental rules and check licence eligibility for the specific property before paying a deposit.
Should I visit before making an offer?
A viewing trip is worth the flight, because areas of the island differ in climate, crowds and prices. Tenerife News’ fact-check of Tenerife travel guides sorts brochure claims from daily reality.
Your Next Step
Start the NIE, hire an independent lawyer, read the arras before paying the 10%, and set aside roughly a tenth of the price for taxes and fees. With those four in place, the notary appointment is a routine signing.