Buying a home in Tenerife is exciting — and the legal side is where foreigners most need protection. A clear process (and ideally a lawyer acting only for you) prevents expensive mistakes. Here's how it works in 2026.
Step 1 — Get your NIE and a bank account
You need an NIE number to buy, and a Spanish bank account to pay. These come first.
Step 2 — Due diligence (the part that protects you)
Before committing, a lawyer checks the nota simple from the Land Registry (Registro de la Propiedad) to confirm:
- Who really owns the property and that they can sell it
- Any debts, mortgages or charges attached to it (these follow the property, not the seller)
- That it's legally built, with the right licences and no planning issues
- Community-of-owners fees and any arrears
Step 3 — The deposit contract (contrato de arras)
Once you agree to buy, you sign an arras contract and pay a deposit (often 10%). This reserves the property and sets the terms. Under the usual arras penitenciales, if you pull out you lose the deposit; if the seller pulls out they typically pay you double. Get this contract reviewed before you sign.
Step 4 — The notary and completion
Completion happens before a notary, who authorises the title deed (escritura pública). You pay the balance, receive the keys, and the purchase is then registered in your name at the Land Registry.
Step 5 — Taxes and costs
Budget roughly 10–12% on top of the price for taxes and fees. The main tax depends on the property:
- Resale homes: transfer tax (ITP) — in the Canary Islands generally around 6.5%.
- New-build (from a developer): IGIC (currently 7%) plus stamp duty (AJD), instead of ITP.
- Plus: notary, Land Registry, and your lawyer's fee.
Why use a lawyer, not just the agency
The estate agent works for the seller. A lawyer acting only for you runs the checks, reviews every contract and represents you at the notary — often the best money you'll spend on the whole purchase. See fixed-fee options on our immigration lawyers page.
Frequently Asked Questions
Do I need a lawyer to buy property in Tenerife?
It isn't compulsory, but it's strongly advised. The estate agent represents the seller; a lawyer acting for you runs due diligence, reviews the contracts and protects you before any money is paid.
How much are taxes and fees when buying in Tenerife?
Budget roughly 10–12% on top of the price. Resale homes pay transfer tax (ITP, around 6.5% in the Canaries); new-builds pay IGIC (7%) plus stamp duty, plus notary, registry and legal fees.
What is an arras contract?
A deposit contract that reserves the property and sets the terms. With the usual arras penitenciales, if the buyer withdraws they lose the deposit; if the seller withdraws they usually pay double.
What is a nota simple?
An official extract from the Land Registry showing who owns a property and any debts or charges on it. Checking it is a key part of due diligence before you buy.