Placing a Bid

Your bid is conveyed through the agent to the seller, who normally responds quickly. In Spain, a competitive bidding round is rare unless several buyers are interested in the same property at the same time. There is also no 24-hour bidding rule as in Norway. If the seller does not accept the offer, both parties enter negotiations and hopefully agree on a price.

Payment of the Reservation Fee

The reservation fee is normally 10% of the purchase price, depending on the reservation period. This is negotiable, but the seller ultimately decides how much is required to take the property off the market. The amount is typically transferred to a solicitor's client account or the agent's account.

The property will be checked for any encumbrances before the reservation fee is paid.

Alternatively, you may sign the deed directly at the notary without first reserving the property — but this carries the risk that another buyer purchases it in the meantime.

Practical Matters

We recommend setting aside a few hours while you are on Gran Canaria so that the necessary paperwork can be started. If this is not possible, some of the paperwork can be completed in your home country by obtaining the required stamps from a notary and local authorities.

A NIE number (Spanish tax identification number) must be obtained for each buyer — this is required, among other things, to pay the transfer tax. A Spanish bank account must also be opened to cover ongoing expenses such as community fees, water, electricity and property tax. These are paid by direct debit. We will assist you with all of this.

Transfer of the Remaining Amount

The remaining balance and purchase costs must be in the solicitor's client account on Gran Canaria no later than the day before the signing, as a bank cheque will be issued to the seller on that day. If payment is made in a currency other than euros, an equivalent amount must be transferred to the solicitor's account well in advance.

The seller's settlement — minus selling costs — is transferred to the seller's account during the notary meeting. Proof of transfer must be presented to the notary before the deed is confirmed.

The Notary Meeting

At the signing meeting, with the notary present, the buyer and seller sign the deed, possibly with an authorised representative. The seller receives payment, the buyer receives the keys, and the property legally belongs to the buyer from this point.

Registration of the Deed

After signing, the deed is sent for registration in the property registry. The process normally takes 4–6 weeks depending on the registry's workload. Registration is necessary to obtain legal protection against third parties.

Costs in Addition to the Purchase Price

For a resale property, you should budget approximately 8–10% in additional costs, and 10–12% for a new-build. With a Spanish mortgage, the percentage may be slightly higher. The costs include:

• 6.5% transfer tax to the state
• €800–2,000 for the notary (any excess is refunded to your Spanish bank account)
• €600–1,500 for the property registry
• Fees for legal representation

Annual Ongoing Expenses

The following costs apply to the property after completion:

• Community fees – monthly, applicable to properties in a community
• Water and electricity – if not included in community fees
• Property tax and refuse collection tax – invoiced twice a year. The refuse tax is approximately €60 per year; property tax is based on the cadastral value, municipality, property type and size
• Non-resident tax for own use – The cadastral value is multiplied by 2%, and the result is taxed at 19%. Example: cadastral value €50,000 gives €190 per year. Applies to EU citizens, Norwegians and Icelanders who are resident in those countries. Paid via the Spanish tax return, first time the year after purchase
• Rental income – 19% income tax applies; plus VAT (IGIC) for short-term rentals. Exceptions may apply for rental income below €30,000 per year per owner. Consult a tax adviser for more information
• Home insurance – the premium depends on the insured value, property size and the insurance company selected
• Extraordinary community costs – If the community lacks funds for repairs, costs may be distributed among the owners. This is uncommon but does occur