Property taxes and purchase costs in Tenerife

Buying property in Tenerife is exciting, but it is essential to understand the real cost of purchase before you commit. Beyond the agreed sale price, buyers should budget for taxes, notary and registry fees, and in some cases future annual tax obligations. The rules also differ depending on whether you are buying a resale property or a new-build home from a developer.

What tax do you pay when buying property in Tenerife?

Because reduced rates depend on the buyer's situation and the intended use of the property, it is wise to confirm the exact tax treatment before signing any reservation agreement or private contract.

Other purchase costs buyers should expect

In addition to tax, buyers should budget for notary and Land Registry costs. These are not fixed flat fees. Both are official charges calculated according to legal tariffs, and the final amount depends on the type of document, the number of acts involved and the fiscal value of the transaction.

FAQ

How much is property transfer tax in Tenerife?

For most resale properties in Tenerife, the general rate is 6.5% ITP, although some qualifying habitual-residence purchases may benefit from a 5% rate.

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