Buy a property in Canary Islands. Canarianlawyers.com

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How to buy a house in Canary Island step by step

Buying Real Estate (plots of land or properties) on the Canary Islands doesn't differ much from buying it at any other place. Nonetheless you should consider the following steps before you oblige yourself to sign a contract.

1º Before the purchase you should take a close look at the person you are negociating with. It is advisable to consult the information given in the register of companies and the property register in order to find out if it is the proprietor himself who is selling the property, if he is engaged in a legal proceeding and if that can influence the Estate you wish to buy. You can also gain information about the status of the property: Is is mortgaged? Are there any problems with the development? Is it yet registered in a public register?

2º It is absolutely necessary to receive the survey map as well as the general blueprint of the property including the description of the neighbouring plots of lands as well as the property's total expanse and the expane of the living area. Not only does this serve the identification of the property but also does it help to carry out the following administrative duties like e.g. the registration in the land registry, the inscription for electricity and water supply, the registration in the resident's registration office, etc.

3º Receipt of important documents such as the building licence, the right of entry, certificate of habitability

4º Receipt of the proprietor cooperative statutes (if available)

5º You should inform yourself whether the mortgage of the sponsor or client can be passed on or if there is the possibility of financing the property with a new mortgage

6º The vendor should hand out the following documents to the client:
Certificate of habitability, receipt of payment of the last real estate tax, receipt of payment of the "Plusvalía" (a tax of increase of value of land) and if the proprietor belongs to a propriertor cooperation the receipt of regular payment of its fees

7º If you consider buying a plot of land on the Canary Islands with the intention to build on it, you should keep in mind that a huge part of the Island's territory is protected and that furthermore in some parts building isn't allowed. Please consult the responsible authorities or a lawyer well in advance.

If you are a non-resident in Spain, you also have to keep in mind that according to the Spanish tax authorities a number of formalities have to be fulfilled to terminate a purchase. E.g. the retaining of five percent of the total purchase price by the vendor, the possibility to regain this sum if certain tax preconditions are fulfilled and the possibility to avoid the payment even as a non-resident if certain aspects as e.g. the vending date is taken into consideration.

It is advisable to consult a qualified specialist (a tax consultant or a lawyer) for each of these steps. He will explain you details and aspects that you might be unaware of and will help you to avoid surprises and keep your money together which in the end will be worth paying a salary.