Useful Information when Buying Property in Fuerteventura

Buying a property in Fuerteventura

What is the property to be used for?
Permanent Residence, Holiday Home, Rental Income, Investment

Setting your budget
Research your capital available.

Non-Spanish residents can usually obtain a mortgage of up to 70% over a period of 15 years or more (80% for residents). This is subject to status, and dependant on age of the applicants.

Type of Property
Apartment, Traditional Finca, Villa, Bungalow, Duplex, Town House, Land or Commercial.

Your Property Requirements
Be realistic, and prioritise your requirements.

Nº of bedrooms, bathrooms, garden, plot size, swimming pool (private or communal),

Sun terrace, balcony.

Location
Beach, Mountains, Tourist Resort, Countryside, Residential.

Nearest town, beach, supermarket, school, medical care.

Buying a rental property?

Long term lets choose residential areas / towns.

Holiday Lets choose popular tourist resorts with good facilities located close by.

Once you have found your ideal property, herewith The buying procedure:

Buying a property in Fuerteventura/ Spain is a big financial decision and for many foreigners the new rules and procedures of the purchase can be a little overwhelming. The buying procedure in Spain, although quite simple, is not quite the same as at home

Here is an overview with an explanation of some of the more common terms you may come across.

Once you have found your property in order to take the property “off market” the buyer deposits a sum normally 10% of the agreed sales price. In some cases the vendor will accept a small reservation fee and the promise that the balance of the deposit will be sent within a few days of your returning home.

You must also sign a reservation document with the agreed price and payment details. Both the agent and the buyer must sign this document.

A Foreign Identification Number (Numero de Identification de Extranjero or NIE) is required to buy a property in Spain. This NIE is needed by the Notary when signing the Title Deeds. The NIE is issued by the Policia National. We assist you in this procedure.

You’ll also need to set up a non-resident (or resident) bank account, which is a simple procedure and also we will be happy to assist you.

Now or at an agreed date the process moves to the Notary where the remainder of the purchase price is paid and the Sales Title Deeds (Escritura) are signed. The buyer now takes possession and can move into the property.

Completion Arrangements.
You may choose to return to the island when the purchase completes at the Notaries office, if this is not an option you may give a Power of Attorney to your lawyer, a family member or friend.

All the costs including transfer tax and the costs of the Notary must be paid. The cost of buying a property in Spain is generally 10% of the purchase price.
• 6.5% ITP tax (Impuesto sobre Transmisiones Patrimoniales) when buying resale property, or 7% IGIC + 0.75% stamp duty if purchasing a new property.
• Notary fees
• Property registration fee
• Expenses of Ownership

Community Fees ( Comunidad de Propietarios). This is usually paid every month and can vary considerably in different urbanizations. It pays for the maintenance of any communal area and the outdoor space such as the swimming pool. Entrance areas, lifts, parking.

IBI ( Impuesto Sobre Bienes Inmuebles)This is paid annually to the City Hall and all owners of property must pay this tax at 0.5% of the cadastral value.

Basura. This is a tax for rubbish collection and is paid annually.

Agua/Electricidad. Water and electricity fees which are paid to the local company.

Impuestos sobre el Patrimonio. Property owners in Spain have to submit a return for the tax on all properties by December 31st..