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INFO - TENERIFE
PROPERTIES WITH MANY LEISURE AMENITIES
OWNERSCHIP & PURCHASE
LAW + TAXES
FIRST STEPS
PURCHASE WITH A CANARIAN SOCIETY (S.L.)
ACT FOR OTHER PERSONS PER PROCURATIONEM (POWER OF ATTORNEY)
ESTABLISHING OF AN CANARY SOCIETY (S.L.)
LAW + TAXES
In Spain, independent of nationality, every person or company is entitieled to buy property, as well as other goods, or to establish a company and to be shareholder and chairman of this company.
No purchasing of properties, or drawing up of private contracts can be carried out in Spain without a solicitor in order for these to be legally entered in the Property Registry Office (Registro de la Propiedad).
Fees and Taxes for Purchase of Properties (private Persons) - depend on the Purchase Price:
| Solicitor's Contract Fees (Escritura) | ap. 1,5 % |
| Land transfer tax (Impuestos Sobre Transmisiones Patrimoniales ITP) | ap. 6 % |
| Registry Fee (Property Register) | ap. 1 % |
| Total | ap. 8,5 % |
Administration Fee for changing ownership in all registers 900.- € (EUROS)
Another kind of tax, the appreciation tax (Plusvalia), must only be paid for the appreciation of building lots (Solares Urbano), it must not be paid for the value of buildings or farmland (Fincas Rusticas). The rate of this tax is based on the situation, the value and the kind of property.
This tax will be on the average 1 % of the value of the purchase price
- Fees and taxes for the ownership of properties by private Persons - anual taxes:
property tax (Impuesto sobre Bienes Inmuebles - IBI or Contribucion):
- Rate of tax 0,3 % - 1,3 % based on the registered value of the property at the Property Registry Office (rateable value) dependent on kind and situation of the property
- Fortune tax (Patrimonio):
- only for private persons - not for companies
Tax free up to 102.000 €
Over 102.000 € the tax rate is progressive 0,2 % - 2,5 %
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