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It has never been so simple to arrange a mortgage in Tenerife. There are many different packages available.
Exchange rate-The exchange rate used for calculation purposes is £1 to €1.45, this may well fluctuate so please be ready to accept any adjustments.
Client Account-The deposit will be paid in to a client account. This money will not be touched until the completion of the transaction. This money will
be identified by the bank for your piece of mind so that at any time you may request proof that the said funds are still available.
Sellers Information-If the seller is a non resident, then there will be a 3% retention for capital gains tax (IRPF). A resident will be taxed through the
normal channels for any capital gains, for further information on this please speak with our financial advisers. The only other payment to be made by
the seller will be our fees. We charge the going rate of 5% of the final sale price. This commission may be negotiated for a sole agency agreement.
Buyers Information-Normally the buyer should allow up to 11% of the purchase price to cover all the legal fees and transfer taxes.
Paperwork and administration required.
The following services will be included in the legal fees.
-Opening of a local bank account.
-Obtaining an NIE number.(Local tax no).
-Paperwork, such as the name transfers of electricity, water, bins and community charges.
-Register for the annual real estate tax,(1311).
-Register for annual rates, urban taxes, I.B.I.
Breakdown Of Fees-It is important to carry out searches on the property that you are buying, debts will remain with the property and not the
individual. Costs about 0.5%
Registry and Notary Fees: These are payable to the Public Notary on the signing over of the title deed, they vary but rule of thumb suggests about
2.5% of the purchase price.
Purchase Tax: A new property is 5%, and an established property is 6.5% of the purchase price.
Document Tax: This is 0.75% of the sales price.
Plus Valia Tax: This is a tax on the increase in the land value since the last purchase. The longer the period of time since the last transfer the more
the tax. This is not usually very high and in practice, if it is reasonable, it is paid by the purchaser.
Legal fees: 0.75%.
Additional Information-
Further information and advice.
-Although it is illegal in Spanish territories, we will find out whether the community where you are buying objects to holiday lets or not.
-We can advise you on the income you may receive from your property, together with the general running and living costs.
-We also use a reputable firm of English speaking accountants and tax advisors, please ask us if you would like an introduction or click the button at
the top of this page.
-They will also advise you as to whether you need a Spanish will.
-We can also introduce you to an insurance firm.
-We also have various contacts in the building and maintenance business, should your property need any modernisation or work doing on it.
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Copyright @ 2008 Gavin Johnson Properties.
While great care has been taken to ensure that all information is correct, accuracy cannot be guaranteed and therefore will not form part of any contract.
We cannot be held responsible for the content of any linked sites.
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