THE GUIDE · BUYING AS A NON-RESIDENT
Peace of mind
starts with preparation.
You can consider buying in Tenerife while living in Italy. Start with the documents, independent checks and total cost: get the important answers before signing.
From your plans to the keys.
Define your goal and total budget
Personal use, extended stays and renting out a property call for different homes and checks. Separate the purchase budget from taxes, professional fees, possible work and a contingency reserve. Discuss any mortgage with the bank before taking on commitments you cannot sustain.
Prepare your identity documents, NIE and payments
The NIE identifies a foreign national in dealings with Spanish economic and administrative authorities. It does not itself grant residence rights or determine tax residence. Prepare a valid identity document, evidence of the source of funds and traceable payments; check the requirements of your case with the notary and bank.
Sources: Ministerio del Interior · NIE ↗
Have the property checked before paying a deposit
Appoint an independent lawyer and a local technical professional for building matters. Check ownership and charges through an up-to-date nota simple, consistency between the property register, cadastral records and the actual property, occupancy or existing tenancies, owners’ association debts, IBI and energy documentation. Verify that your intended use is permitted before committing.
Understand the offer and arras agreement
Preliminary agreements do not all have the same effect. Have the deposit, conditions, deadlines, financing and consequences of withdrawal explained in a language you understand. Agree who will hold the funds and when they must be refunded. Discuss any power of attorney and translation needs with your professionals.
Deed, taxes and registration
The notary ensures the legality of the deed; the adviser you appoint protects your particular interests. After signing, the tax formalities, registration at the Registro de la Propiedad, utilities, owners’ association matters and deadlines must be handled.
PURCHASE TAXES
The purchase price is only
part of the cost.
An introductory outline for an ordinary home purchase in the Canary Islands, as at the research date. Tax treatment depends on the transaction and applicable taxable base; reduced rates require specific eligibility.
| Ordinary transaction | Relevant tax | What to check |
|---|---|---|
| Resale home subject to TPO | ITP: general rate 6.5% | The taxable base and the specific tax treatment of the sale. |
| First sale by the developer, subject to IGIC | IGIC: ordinarily 7%; AJD: 1% for deeds relating to transactions subject to IGIC/VAT. | The classification of the transaction, taxable amounts and any applicable relief. |
The general AJD rate is 0.75%, with a 1% rate for transactions subject to IGIC/VAT: it is not a percentage to add automatically to every purchase. Notary, registration, legal, technical, translation and financing costs require a separate estimate.
Sources: BOE · Canary Islands taxes, Articles 31 and 36 ↗ · Agencia Tributaria Canaria · tax FAQs ↗
The questions to be clarified.
If the seller is non-resident, do I pay an extra 3%?
In general, the buyer withholds 3% of the consideration payable to a non-resident seller and pays it using Form 211 on the seller’s behalf. This is a withholding from the seller’s payment, not an additional 3% purchase tax to add to the buyer’s price. Have the appointed professional handle the requirement correctly.
Sources: AEAT · 3% withholding and Form 211 ↗
Do foreign nationals and non-residents face the same requirements?
Citizenship, administrative residence and tax residence are different concepts. Non-EU citizens may also need military authorisation in restricted areas. The regime provides an exemption for EU citizens: the notary must check the buyer’s position and the particular property. Buying a home does not automatically grant a residence permit.
Sources: BOE · Ley 8/1975, restrictions in defence zones ↗ · Ministerio del Interior · NIE ↗
What expenses should I expect after buying?
Budget for municipal IBI, any waste charge, owners’ association fees and possible extraordinary expenses, insurance, utilities, maintenance and remote management. Spanish tax obligations and those of your country of residence must also be considered. Request documents and a property-specific annual budget.
Read the guide to ownership and letting →Before choosing,
let’s make things clearer.
Let’s discuss your plans in Tenerife ↗Research and sources checked on . Introductory guidance: rates, requirements and permitted uses must be checked for the particular case before signing, with qualified professionals in Spain and, for Italian tax residents, in Italy.