Everything you need to know to invest in the Canary Islands
Purchasing a property or building land in Fuerteventura is an exciting step, but it requires knowledge of local legal and tax procedures. This guide will walk you through your real estate investment in Fuerteventura step by step.
1. The First Step: The NIE Number
For any real estate transaction in Spain, obtaining a NIE (Número de Identidad de Extranjero) is indispensable. This is a tax identification number for foreigners, required to sign the deed of sale, open a bank account, and set up utility contracts for your new villa in Fuerteventura.
2. The Option Contract or “Arras”
Once you have chosen your home or building plot, the Arras contract is signed. This is a private agreement where the buyer pays a deposit (usually 10%) to reserve the property. This document protects both parties before the completion of the public deed.
3. Purchase Costs and Taxes in the Canary Islands
It is essential to budget an additional amount of approximately 10% on top of the sale price to cover closing costs:
- IGIC (Impuesto General Indirecto Canario): The Canary Islands’ equivalent of VAT. For new constructions and land, it is usually 7%.
- ITP (Impuesto de Transmisiones Patrimoniales): For pre-owned properties (currently 6.5% in the Canaries).
- Notary Fees and Property Registry: Fixed costs for the legalization of the deed.
- AJD (Actos Jurídicos Documentados): A tax applied to notary documents and mortgages.
4. Due Diligence: Verifying the Land or Property
Before purchasing land in Corralejo, Lajares, or La Oliva, our agency carries out rigorous checks:
- Nota Simple: To verify that there are no outstanding mortgages or debts.
- Urbanistic Certificate: Essential for plots of land to confirm what and how much can be built, ensuring compliance with Fuerteventura’s local regulations.
5. The Notary Deed (Escritura)
The sale is finalized in front of a Notary. This is where the final payment is made and the keys are handed over. As your real estate agency in Fuerteventura, we assist you throughout the entire signing process to ensure the transaction is transparent and secure.
Expert Advice:
Relying on local professionals is the key to a risk-free investment. If your dream is a custom-made eco-sustainable home, we will also guide you in choosing qualified architects and builders.