Lanzarote's Biggest Property Site

Purchase Guide

Lanzarote’s Biggest Property Site


Deciding the Location

You need to decide the purpose of your purchase, is it intended for holiday let? long term visits? or whether you intend to live here year round. Your choice of location should take your needs into account, if you want to achieve a healthy rental income for the months you are not occupying the property.

Choosing the Property

You need to know a lot more about your property than you would if you were just spending a couple of weeks there. Is there community fees? If so, what are the monthly charges? (Remember, if you are in a community you are legally obliged to pay them or you could lose the property.

Buying the Property

The first essential thing before you part with a penny is to make sure that the person selling the property is entitled to do so. We at will carry out a basic search to confirm if this is correct. We will then either take you, or refer you to a suitable lawyer (the Irish Consulate will provide a suitable list of lawyers on request, if required) Our recommended lawyer will independently check your intended property thoroughly.

Taxes and Costs

In addition to the sales price, you will also have to bear in mind extra taxes and costs which amount to approximately 10% of the new declared value of the property.

This applies to both a resale and newly built properties.

These extra taxes and costs are made up of the following: -

  • 6.5% ITP Tax (Impuestos sobre Transmisiones Patrimonials) for resale properties. 5.75% (VAT and stamp duty for new properties).
  • Notary fees
  • Property registration fees
  • Translation fee (If you do not speak fluent Spanish)
  • Legal fees (If a Lawyer is required)
  • Plus Valia- This is capital gains tax on the LAND ONLY, Not on the building.
  • Mortgage fees if a loan is required plus .75% stamp duty on mortgage deeds.

Documents required for Mortgage Application

Details required for Employees

  • P-60 from all applicants
  • Photocopy of all applicants valid passports
  • Last 2 payrolls
  • Justification of other income, if applicable.
  • Justification of assets i.e. Current mortgages etc.

Details required for the Self-Employed

  • Photocopy of all applicants valid passports
  • Previous 2 years income tax returns
  • Payments on account of income tax for previous 2 years
  • Justification of other income, if applicable.
  • Justification of assets (Net worth)

There are certain advantages of obtaining a mortgage in Lanzarote, for example, the interest rates here are much lower than in Ireland. Provided that you submit the correct requested documentation, you should normally get an answer within 2 working days.

The bank normally offers you as a non-resident, up to a maximum of 70% (subject to status) of either the valuation price or the actual purchase price, whichever is lower. With this in mind it is sometimes worthwhile taking the time to compare offers made from other banks.

We as a company have a very good working relationship with Spanish Banks who offer an excellent standard of service to all nationalities. Some banks produce documents in your language making banking and more importantly distant banking easier than ever.

Legal Information

Your Spanish lawyer will ensure that your best interests are the focal point of the purchase procedure. Here at Lanzarote, we recommend you go through a local Spanish lawyer for various reasons but most importantly a local lawyer can make the process go that much smoother and also many Irish and UK lawyers are not qualified to practice in Spain.

Any lawyer that Lanzarote may recommend works independently on behalf of the purchaser / seller and will always make sure that it is YOUR best interests that are put first with any transaction. Under Spanish law, no solicitor is allowed to represent both the seller and the purchaser, ensuring no conflict of interest.

As mentioned previously, your lawyer will carry out a series of searches on the property of your choice to confirm that you can purchase it safely:

· Your lawyer will check the vendor’s title deeds to prove that the person who claims to be the owner is the named person on the deeds.

· Your lawyer will also check the “Nota Simple”, this document provided by the corresponding Land Registry Office states the legal owners of the property.

· Your lawyer will investigate to see whether there are any outstanding debts, a mortgage or any other charges on the property. These may include overdue community fees, electricity and water bills or rates to name a few. As the purchaser, you will only be responsible for charges once taking title of the property so it is of extreme importance that this aspect is thoroughly looked into beforehand. The vendor will have to pay the rates on the property for the previous year to you taking title and account for any overdue community fees.

Once the title deeds are signed, your lawyer will make sure that all taxes and other fees are duly paid on your behalf providing you with all the corresponding receipts. We can recommend the services of independent English speaking, professional lawyers who will be able to advise you on all aspects of the procedure, helping you feel at ease while leaving the hard work to them.

What is an NIE number and why do I need one?

In Spain you cannot legally buy property, a house, car, boat etc without having applied to the police for your NIE number and had your NIE documentation returned. Likewise, you cannot enter into a contract for the supply of electricity, water or a telephone line etc without giving your NIE/NIF number together with your bank details because these services will only accept clients whose bills are paid automatically from a bank. Neither can you arrange an insurance policy or order goods or services, sign on for the National Social Security, Health Service or commence a job without showing your NIE number.

The Decree (Real Decreto 338-1990) of 9th March establishes that everyone, of whatever nationality, resident or not, who has any “official business” in Spain, must have a fiscal number (NIF/NIE) which is used to identify them on all official documents.

NIE & Residence Application Regulations

Spain has updated the regulations governing NIE applicants; it is now official policy for all new foreigners wishing either to reside or buy property in Spain to complete an EX18 NIE form which also covers Residencia, regardless of whether or not they are buying property for a permanent residence or a holiday home.

Without a Residencia - you are not legally entitled to stay in Spain for more than 90 days before returning to the UK or your home country, or applying for a Permanent or Temporary Residencia Permit.

What is the difference between an NIE and NIF number?

People often talk about or ask for your NIE or NIF number. In actuality they are the same. The NIE is used for confirming your identification whereas, if you wish to carry out any fiscal function such as opening a bank account, buy a property, car, boat etc it is referred to as an NIF (fiscal) number. Application requirement and the document issued are the same.

Do I have to apply to the police personally for an NIE?

Normally, yes, but…
It is now accepted that where applicants find difficulty in attending a Spanish National Police Station personally, they may apply through a solicitor (abogado); to do so they must give the solicitor their full Power of Attorney (POA) and complete form EX18 ensuring they complete section 4.

Solicitor Assistance. For such services a solicitor normally charges 130 Euros or more. Alternatively, if you wish to apply yourself but need assistance translating the NIE form at the police station, an interpreter will normally charge 30/40 Euros per hour for their services.

Applying for your NIE & Residencia Registration

How difficult is it to apply by ones self?

Standing in a queue at the Police station to obtain the forms.
Understanding enough Spanish to complete the form correctly.

Obtaining a form 790 which you take to your Spanish bank for payment of the required police administration fees of €10.80
Returning to the police station and queuing a second time to present the forms and the bank receipt.

Often having to return another day to collect your registered applications we advise arriving at the Police Station no later than 7am as we have known queues of over 100 and more stretching around the buildings. At most locations a police clerk arrives at 8.30 to hand out numbered tickets to the queue, (some times there are too many and some applicants are told to come back the next day; the office door opens at 9am. Some offices accommodate you inside until your allotted number (in other offices many people are forced to wait outside (whether rain or shine).

Alternatively, you can choose to take the forms to a solicitor to act for you. Note: each person must complete their own forms and then sign them at the police station or Consulate.

To overcome some of the waiting problems and costs we offer the following service:

Our recommended solicitor can make the application for you. Subject to you giving him/her your Full power of Attorney; we will provide a full quotation of all costs involved, (the solicitor may request confirmation of your identity signed by a Notary) which will add very considerably to the costs, so make sure to have your passport with you to avoid this.

We promise to guide you personally through the process to ensure that everything runs smoothly for you.

Property buying guide
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