What are the costs of buying a new-property in the Canary Islands?

Many users and prospective owners often ask us what the costs of buying a new-property in the Canary Islands are. That is why we decided to write this post, to answer to this so common question and let you be secure when signing the purchase of your new home in the Canary Islands.

Concepts, expenses and taxes you must bear in mind:

Purchase Price: It is the amount of the properties without taxes (VAT, in the Canary Islands is called IGIC).

IGIC: It is the VAT in the Canary Islands, the rate to apply to purchasing price, in Canary Islands it is 7% (in the rest of Spain this VAT is 10% for home purchase).

Notary fees: It depends on the purchasing price, generally it is between €700 and €1,000.

Land Registry fees: roughly 3/4 of the cost of notary fees.

Stamp duty for a new-building: 1% of the purchase price.

The IGIC (VAT) and the other costs are approximately 9% of the purchase price.

The amounts of the costs are approximate and not contractual offers.

Let’s look at an example to see what costs – approximately – would be involved for buying a €120,000 new-property in the Canary Islands:

EXAMPLE 
Purchasing Price:€200,000
IGIC:€14,000
Total Price:€214,000
Other Costs
Notary fees:€900
Land Registry fees:€600
Stamp duty New Build:€2,000
Paperworks:€250
TOTAL COST:€217,750

With the previous information and example, we expect to have clarified all your doubts related to the costs when the time of signing the purchase of your new housing in the Canary Islands arrives.