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What does a non Spanish resident need in order to purchase a property in the Canary Islands?

The most important thing is obtaining a NIE (Identification number for foreigners). You will also need to set up a non-resident bank account. A lawyer will take care of all of this for you.

What is a sales agreement?

At the moment of handing over a deposit on the property you choose, a sales agreement will be signed by both parties, this is a private document and will state the following points;

  • details of the purchaser and vendor
  • a legal description of the property
  • the purchase price
  • the amount paid on deposit
  • completion time scale and penalty clauses (this time scale is usually up to 60 days to allow for mortgage applications and refurbishments if required)

Is it easy for a non Spanish resident to obtain a mortgage?

It is very straightforward to apply for and obtain a mortgage as long as you submit the financial documents required by the bank (see below), the Spanish banks are easing more and more the mortgage applications for non residents and we can now get you up to 80% of the property valuation on mortgage.To apply for a mortgage you will need to present the following;

  • p-60
  • copies of passports
  • copies of bank statements
  • last 3 payslips

If self employed;

  • Copies of passports
  • Copies of bank statements
  • Last inland revenue tax return
  • We will take care of this process for you from start to finish

Will we have to pay tax when selling the property?

Yes, unfortunately no-one escapes tax of one kind or another. When selling you will have to pay 5% of the new declared value as retention to the Spanish tax office.

You will also have to pay 35% of the capital gains as Income tax, i.e. 35% of the difference between the price you purchased at and the price you are selling at.

If you have any other questions please contact us, we are here to help you with all your queries and doubts.

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