Property Buying Process in the Canary Islands for Foreigners

Buying a property in the Canary Islands as a foreigner is a structured and secure process, but requires understanding certain administrative steps specific to the Spanish system. This guide details each phase so your acquisition is transparent and hassle-free.

Step 1: Obtaining NIE (Foreigner Identification Number). This tax number is mandatory for any real estate transaction in Spain. It can be obtained at the Spanish consulate in your home country or directly in Spain at foreigner's offices. The process typically takes 2-4 weeks. Nexta Living can facilitate this procedure through specialized management agencies.

Step 2: Opening a Spanish bank account. Essential for managing property payment, taxes and recurring expenses. Major Spanish banks offer specialized services for non-residents. You'll need your passport, NIE and proof of address. Some entities allow starting the process online.

Step 3: Property reservation. Once you've identified your ideal property, a reservation contract is signed along with payment of a deposit (typically €3,000-€10,000 depending on value). This document removes the property from the market while due diligence is completed.

Step 4: Legal Due Diligence. Your lawyer will verify: clear property ownership, absence of charges or mortgages, urban planning compliance, energy efficiency certificate, habitability certificate and first occupation license if new build. They'll also confirm no outstanding community fees or property taxes.

Step 5: Deposit contract. The private purchase contract is signed with payment of 10% deposit. This contract legally binds both parties and establishes the notary signing date. It specifies penalties if either party fails to comply: the seller would return double the deposit, the buyer would lose it.

Step 6: Notary signing and public deed. Before a notary, the public purchase deed is signed, the remaining price is paid (normally by confirmed bank transfer or bank check) and keys are delivered. At this moment, Property Transfer Tax (6.5% in Canaries) or VAT if new build (7% IGIC in Canaries) is settled.

Step 7: Property registration. The deed must be registered at the Property Registry for the transfer to be enforceable against third parties. This procedure is normally managed by the notary or your lawyer and takes approximately 2-3 months.