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Whether you or looking for a one bedroom apartment in Puerto del Carmen or a luxury country villa as a long term investment, If you don’t need finance or you have a pre-arranged mortgage, you will have a distinct negotiating advantage when it comes to settling a price. If you require a mortgage, but have not yet arranged a loan, we recommend you do so before looking at property. The next step begins the conveyance and at this stage we recommend you use a lawyer. Your lawyer will investigate the Escritura (Title Deed) for the property you wish to buy and will carry out the local Land Registry Search
Your new Escritura will be signed by you (or your lawyer if you have granted power of attorney) in front of a Spanish notary and the outstanding amount will be paid over to the vendor. Before this happens, the notary will require the vendor to provide the evidence that municipal rates are paid and up to date. In addition to the purchase price, you
will need to pay notarial costs, Land Registry fees, Impuesto sobre Transferencias Patrimoniales - Transfer taxes (stamp duty), lawyer's fees and legal costs, as well as several minor taxes including the Plus Valua, which is a land appreciation tax paid to the local municipality. Utilities bills will be transferred to your name and direct debits will be set up to pay future bills. The same applies for telephone (if relevant) and the community charge, if your property is on a complex with a community of owners. After you sign your deed of purchase in the notary, your lawyer will finalize the paperwork by submitting the Escritura to the local Land Registry. Once the title deed has been registered in your name, you will receive your registered deed which is your proof of ownership and should be kept in a safe place. The entire process from signing in the notary's office, to receiving your registered deed takes about 2 months, but you are entitled to receive a Copia Simple (shorter pre-land registry deed) within 2 - 3 days of signing.
Banking and Mortgages :
Terms and Conditions vary, depending on the bank and type of mortgage you require, but as a rough guideline non-residents can borrow up to a
The investment for the rental market place:
1) long term rental,
where this is a continuos set monthly amount. There is also a growing number of local professional workers,
who along with their families, have created a huge demand for long term rental properties. Normally you will
have less return on this basis but there is really no input by the property owner to get involved with situations
like weekly cleaning, linen and towel changes, etc.
. 2) The weekly holiday rental market.
This has seen enormous growth in the past few years. With the event of the Internet and the ease of which individuals can now find, book and
choose a airline to reach their preferred destination is the main reason for this growth in the rental market. Advertising your property on specialist websites such as Owners Direct, Home & Away Holiday lets, Espanabreaks, Holidaylettings, Premier-holidays, are to name but a few, where
clients can book your rental property all year round. Promote your property correctly and you can exspect well over 45 weeks per year rental
income. There are many cleaning companies and individuals on Lanzarote, who are geared up for looking after your rental property. They will
make sure that your property will have the correct clean and change over for your clients. Prices vary from the type of property you have and the amount of clients that are staying in your property.
QUESTION: How do I apply for a mortgage in Lanzarote?
ANSWER: As in other countries, Spanish banks will want to be satisfied as to your income and will lend around 60%.
QUESTION: How much deposit should I have to put down to secure a property?
ANSWER: It is customary to pay a 10% deposit, then the balance when signing for the deeds.
QUESTION: When can I move in?
ANSWER: You can take possession of the property when the title deeds have been signed at the notary.
QUESTION: Does Lanzarote have a national health care system?
ANSWER: Yes, it's free to any EU citizens. Also there is a good private healthcare facility.
maximum of 60% of the purchase price or bank’s valuation (whichever is lower) for a maximum loan period of 30 years. Residents may obtain up to 70% mortgages on the purchase price or bank’s valuation (whichever is lower) and again the maximum loan period is 30 years. Interest rates in Spain are currently among the most competitive in Europe and are probably more competitive than similar rates in the U.K. or Ireland. Discounted first year rates start from as little as 2.5% depending on your circumstances. Mortgages in Spain differ from those in the U.K. and Ireland in that they are levied on the property, not on the person who owns the property.
Questions and Answers:
QUESTION: Can my UK State Pension be paid to my Spanish bank account?
QUESTION: Do I have to do a tax decleration in Spain.
This is to make sure that everything is in order, for example that the sellers are indeed the lawful owners and that there are no charges, encumbrances or legal problems with the property.
The Right Way to Purchase a Property in Lanzarote
If you calculate to add approximately between 8% and 10% for taxes and costs on top of the sale price of the property. This applies to both a resale and newly built properties.
These costs are made up of the following: -
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