A guide to buying property in Lanzarote
The thought of buying a new home in Lanzarote can be a daunting one, but it doesn't need to be.
Once you have found your dream home, the next step is to pay a holding deposit/reservation fee to the agency in order for the property to be taken off the market for 30 days whilst initial legal checks are made and the purchase contract is prepared. This is normally 1% of the purchase price. A reservation contract is signed stating the agreed purchase price and how long the reservation will last.
At this point, you should instruct a solicitor to act on your behalf, visit the national police station in Arrecife to apply for a NIE*, and open a non-resident Spanish bank account. You will need your passport and some form of tax information showing your national insurance number to open a bank account.
Your solicitor will then carry out the relevant searches and checks to ensure that your dream home is fully compliant with the Town Hall and also to confirm there are no outstanding debts on the property. Once these checks are complete your solicitor will then draft your purchase contract which is signed by both parties and 10% of the purchase price is deposited into the vendors bank account. The purchase contract will also define the latest date upon which the property must be sold.
Purchasers in Lanzarote generally do not request a survey of property, but if wanted, a certified survey can be arranged by a Technical Architect.
In terms of additional costs incurred at the time of purchase, If you add approximately between 8% and 10% for taxes and costs on top of the sale price of the property.
These costs are made up of the following:
- 6.5% ITP Tax (Impuestos sobre Transmisiones Patrimonials) for resale properties.
- Notary fees, title deed tax and land registration fee
- Translation fee (If you do not speak fluent Spanish)
- Legal fees
- Mortgage opening fees.
If you have any questions regarding buying property in Lanzarote then please do not hesitate to get in touch with the team at Property Solutions. We have years of experience helping people purchase their Lanzarote homes and are here to answer your queries and assist you every step of the way.
* Spanish identification number which is needed to buy property.