People have all sorts of questions about owning property in Tenerife, whether about going to the notary, the costs involved in a purchase, how to sell, valuations, taxes, you name it. Below are some of the questions I’m most often asked. If your question hasn’t been answered below, please just ask in the comment box at the bottom of the page. Just click on any question to expand it to show the answer.

If your question is about complexes, community life or the Law of Horizontal Division please see the Living on a complex page HERE.


 

 

Buying

 

 

 

 

 

 

Costs & Taxes

 

 

 

 

 

 

 

 

Valuations

 

 

Letting

 

 

 

Mortgages

 

 

 

 

Selling

 

 

 

 

 

 

This article has 23 Comments

  1. Hi
    with regard to the plusvalia tax surely now a vendor could refuse to pay this as the courts have already ruled that it it is illegal in cases where the value of the property has fallen from the time of the initial purchase.

  2. There have been a few rulings, I think, but none in the Canaries … but no, a vendor couldn’t refuse to pay without being prepared for the Ayuntamiento to take action against them for non-payment. Each case would need to be the subject of a separate legal challenge by a vendor, I would think, at least until the Constitutional Court has ruled on the issue as a generality (and my understanding is that they are considering the matter but have not yet ruled.).

    Certainly too a fiscal valuation would be required, and if the vendor is a non-resident, indeed, most often a retention will be taken to ensure the bill is covered to stop it becoming a bill that the new owners are held responsible for.

  3. Hello Janet and everybody! About IRNR, for 2015, it is reduced to 20% from the beginning of 2015 (till 11th of July) and further (from the 12th of July 2015 till 31 th of December 2015) lowered to 19,5%.
    Does that mean two different “‘modelo120”, correct? Thanks in advance and congratulations for your site!

  4. I’m sorry I don’t know. As I say repeatedly, please direct any specific questions about tax and tax returns to qualified professionals. Please see the “Financial” section of the Resources page (main tab above) for links to Diana McGowan and Paul Montague, both of whom I can recommend for tax issues.

  5. Where is the best place online to find people are renting their property for 2 – 3 months over the summer period please?

    Thanks

  6. There are links on the Resources page (main tabs above) to official tourism sites for legal holiday acommodation, but for very short-term private lets (i.e. under three months, and so which are deemed touristic and are not legal here) your best bet is to seek owners who are letting direct, usually through Facebook groups … just put Tenerife apartment rental in the search box. Bear in mind that over the summer months, most owners will want one or two week holiday lets, being the most profitabale, so you might struggle somewhat.

  7. my daughter wants to buy our apartment in spain but pay in pounds,my Spanish lawer said we have to prove payment has been made any ideas thanks.

  8. It is quite normal, and absolutely fine, to pay in Sterling outside of Spain, but for money-laundering reasons, EU law require transactions to be provable. Your UK bank will need to provide proof of the payment, both the account the money leaves and the account it arrives in, and this proof will need to be included in the escritura your daughter signs at notary.

  9. I have a holiday property in Amarilla Golf but live in the UK. My water and electric bills are paid usually by direct debit by BBVA bank in Playa. Due to a bank error my bills have not been paid for 6 months. Where can I go in Tenerife to pay these bills by cash when I come out in 2 weeks. Help please.

  10. You should go to the offices of your water and electricity companies and get an up-to-date account of how much is outstanding, and whether there are any reconnection issues. Once you know the exact situation, they will confirm how you can pay – maybe over the counter, or you might need to go to a bank to pay over the counter.

  11. Thank you. That really is very helpful. All I need to do now is to find my nearest Canaragua and Endesa Energia offices and go along with the money. Any idea where the closest offices are, please. Many thanks.

  12. As far as I know the nearest Canaragua is in a shop in Marola Park, El Camisón, and the nearest electricity office in a shop in Oasis Dakota complex in Fañabe (opposite Gran Sur).

  13. Hi Janet Do you know if there is a standing charge for your electric metre in Tenerife, just checked my on line banking and noticed Electric bill for €47, we have not been out for 2 months so wanting to understand why, any suggestions would be helpful

  14. Hi Janet my my husband and i want to buy a house with are adult daughter
    we are non resident but she is resident and works
    do you know how are yearly tax bill will be worked out
    she will be living in the house and owns no other property
    thankyou
    sue

  15. I don’t advise on taxes, but as always with these situations, there will be a pro-rata division in non-resident and resident taxes annually and on sale. I recommend that you jointly consult someone like Diana McGowan, a qualified asesora (like a certified accountant) who does tax returns and whose details are on the Resources page.

  16. Hi Janet
    sorry to trouble you again
    we are buying in south gran canaria in sonneland , do you know of a qualified asesora there we could use
    thanks
    sue

  17. Hi Janet
    Where can i obtain a list of home improvements that are exempt from capital gains tax we are selling our property and have been told that we may have to pay capital gains but if you have improved the property they are taken into consideration, unfortunately we do not know what they class as ho e improvements.
    Can you help
    Thanks

  18. There’s no list – you claim and they accept it or not. The key is not a particular “thing” but whether you can prove the expense and have a tax receipt for it. Those are the only works you can claim for.

  19. Do you know what happened at the court of European justice meeting on 12th July regarding the interest rates being charged by banks please

  20. If you mean the clausula suelo, as far as I am aware a judgment has not yet been made, though a legal opinion expressed at the time of the hearing suggested that things weren’t looking bright for those who hoped to get overpaid interest backdated.

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