Frequently Asked Questions......
What extra costs do we budget for when buying a property in Fuerteventura?
We recommend allowing around 10-11% on top of the purchase price of the property. This figure includes: (ITP) Property Transfer Tax, which is currently 6.5% on re-sale property, or (IGIC) which is tax payable on new property, which is 5%. The remaining 4-5% is made up of legal fees, notary fees, stamp duty, mortgage arrangement fees etc. Your solicitor will explain in detail the breakdown of all your costs.
Please click here for more detailed information on the Buying Process.
How much deposit do I need and what is the payment process?
Normally for the purchase of a re-sale property, you will be required to pay a 10% deposit to the solicitor and sign a Private Sale & Purchase Contract, the balance will be payable upon completion at the Notary where you will sign the Title Deeds (Escritura). This can be a relatively quick process, around 6 weeks after paying the deposit.
With off-plan properties, you will normally pay a reservation fee of 6,000 euro and you will have stage payments over the course of the construction, usually 30% with the balance payable upon completion. A purchase contract will be drawn up and the deposit is required, depending on the developer, this maybe 10% or 20% and then a further 10% payment is usually required within a certain period. The balance is then payable upon completion of the property. All stage payments will be written into the contract.
Is it better to arrange finance in the UK, or in Fuerteventura?
Interest rates in the EU are significantly lower than in the UK. You may want to take advantage of releasing equity in the UK in order to purchase your property in Fuerteventura. If you arrange your mortgage in Fuerteventura, it will not tie up your assets in the UK. Spanish banks will normally lend up to between 60 % - 70% of the purchase price for non-residents.
What is the best way to transfer my money?
We would recommend that you use a reputable currency exchange company. They will usually give a better exchange rate than the banks and are able to advise you on the exchange rate fluctuations.
What is a NIF/NIE and do I need one?
An NIE/NIF (Número de Identificación de Extranjeros) number is a fiscal identity number which you obtain from the Police Station with the help of your solicitor. You need an NIE/NIF to purchase property, a car and to be able to work and pay Social Security. You also require this number to enter into a contract for water/electricity supply, telephone line etc.
Do I need to be a resident to purchase property?
No. If you are a member of the EU, you do not need to apply for residency, but if you plan to reside in the country for more than 180 days, you will need to register with the town hall (Ayuntamiento).
Do I need a solicitor?
Yes, we recommend that you use a solicitor throughout the buying process. The solicitor can act on your behalf if you are not present, by giving them Power of Attorney, they can then attend the Notary on your behalf and sign over the title deeds for you. They will also arrange payment of all the purchase taxes and fees, liase with the developers and agents and arrange for the connection of Water & Electricity.
We would recommend using a local solicitor on the island as they are in constant contact with the local town halls, know the developers and agents and are probably familiar with the purchase contracts from developers on new build properties already. If you prefer to use a solicitor in the UK, or Ireland, that is entirely your choice, but instructing a solicitor from the UK can be more expensive as they are dealing in unfamiliar territory and more often than not, will only use the services of a solicitor here in any event. The choice of solicitor is up to you, if you wish we can provide you with details of local solicitors for your perusal.
Solicitor recommendation:- Glex&Co Lawyers.
Do I need a Spanish Will?
The answer to this is yes, the laws are very different in Spain to the UK, so in order to avoid any problems in the future it is very important to arrange a Spanish Will. Your solicitor can take care of this for you and explain in detail what is required from you.
What on-going costs are there?
This is a question that regularly comes up! Basically you have to pay a Local Tax which is issued by the Town Hall, also (IBI) rubbish collection tax. Your solicitor will send the relevant documents (copia simple & NIE numbers) to the Town Hall and it is advisable that you arrange to have this bill paid directly through the bank, so it isn't forgotten about. The tax varies and depends on the m2 of the property. The IBI is payable in October, so you need to check that the property is registered in your name with the Town Hall. They will require your bank details so a direct debit can be arranged on an annual basis. The costs are minimal compared to what you would pay in the UK or Ireland. Obviously you will have utility bills to pay, which are payable by Direct Debit.
What are Community Fees?
If you own a property on a complex, you will form part of the community of owners. It is quite common here on the island, but may come as a new experience to someone from the UK or Ireland. The community of owners are responsible for paying for the up-keep of the roads, lighting, garden areas, communal swimming pools etc. These fees are payable by law, so you must have sufficient funds in your account to pay by Direct Debit. The community fees vary depending on what facililities the complex has to offer, these can be from 20 euro to 150 euro per month. If you are purchasing an off-plan property on a development, we cannot tell you what the community fees will be. This is not arranged until the Community of Owners are set up and can take a few months after completion. There will be a President or Administrator in charge of the community of owners and meetings are held regularly to discuss any issues pending.
