Frequently asked questions
Tax representation
Non-resident buyers need a local tax representative. A tax office (Asesoría fiscal/Gestoría) can take on this function. The costs amount to around 140€ per year.
Communidad (Community expenses)
Depending on the investment, the monthly “house allowance” varies between 30€ and 300€ per month and may already include water and electricity costs.
Rubbish collection (Basura)
The fees amount to around 60€ per year.
Self-use tax (non-resident tax)
Non-resident owners must pay this tax if they use their property themselves and do not rent it out. It amounts to 1.1% of the cadastral value, 19% of which is due as tax annually. Example: With a cadastral value of 50,000€, the tax is 104.50€. For people without a primary residence in the EU, Norway or Iceland, the tax rate is 24%.
Real estate transfer tax Gran Canaria
The property transfer tax (Spanish: ITP) when purchasing an existing property in Gran Canaria is 6.5% of the purchase price and must be paid within 4 weeks of the notary appointment.
Property tax (IBI)
It is based on the cadastral value. For an average one-bedroom apartment, such as in Playa del Inglés, it is between €180 and €250 annually. Payment is made semi-annually in June and November. The cadastral value of the property can be found on the property tax payment receipt (IBI).
PlusValía (capital gains tax)
By law, this tax is borne by the seller and must be paid after the purchase/sale. The municipal capital gains tax (PlusValía for short) is levied by the municipalities and is based on the cadastral value. It is levied when a property is transferred (e.g., by purchase, gift, or inheritance). Exceptions apply only to agricultural land or if the last transfer occurred less than one year ago.
How long does a checkout take?
The notarial sale can be prepared in approximately 1-2 weeks if all documents are available. When financed, the period is extended by 3-6 weeks, as Spanish banks expect at least 30-40% equity.
Ways of payment for the property with the notary
Payment is usually made by name-based bank check or online transfer during the notary appointment. A down payment of 10% is often included in a purchase option contract (Contrato de arras).
Spanish account
A Spanish bank account is recommended for buying real estate and running costs, but not absolutely necessary. Thanks to SEPA payment procedures, many transactions are also possible with foreign accounts.
N.I.E. Number
The "Foreigner Identification Number" is required for purchasing real estate. It can be applied for at the police station in Spain or at the Spanish consulate in Germany.
Notary and land register entry
The notary fees are around 750€ - 950€, depending on the expenses. The fees for entry in the property register (registro) are around 400€.
Building | Household insurance
The prices vary depending on the property and insurance benefits, but are on average between 150€ - 250€ per year.
Electricity & Water
The costs are lower than in Germany, Austria or Switzerland. Experience: An apartment with two people costs around 60€ - 70€ per month, depending on consumption.
Tax representation
Non-resident buyers need a local tax representative. A tax office (Asesoría fiscal/Gestoría) can take on this function. The costs amount to around 140€ per year.
Communidad (Community expenses)
Depending on the investment, the monthly “house allowance” varies between 30€ and 300€ per month and may already include water and electricity costs.
Rubbish collection (Basura)
The fees amount to around 60€ per year.
Self-use tax (non-resident tax)
Non-resident owners must pay this tax if they use their property themselves and do not rent it out. It amounts to 1.1% of the cadastral value, 19% of which is due as tax annually. Example: With a cadastral value of 50,000€, the tax is 104.50€. For people without a primary residence in the EU, Norway or Iceland, the tax rate is 24%.
Real estate transfer tax Gran Canaria
The property transfer tax (Spanish: ITP) when purchasing an existing property in Gran Canaria is 6.5% of the purchase price and must be paid within 4 weeks of the notary appointment.
Property tax (IBI)
It is based on the cadastral value. For an average one-bedroom apartment, such as in Playa del Inglés, it is between €180 and €250 annually. Payment is made semi-annually in June and November. The cadastral value of the property can be found on the property tax payment receipt (IBI).
PlusValía (capital gains tax)
By law, this tax is borne by the seller and must be paid after the purchase/sale. The municipal capital gains tax (PlusValía for short) is levied by the municipalities and is based on the cadastral value. It is levied when a property is transferred (e.g., by purchase, gift, or inheritance). Exceptions apply only to agricultural land or if the last transfer occurred less than one year ago.