Canary Islands Property For Sale - Canary Islands Property Prices

Currently, Canary Islands property prices in the region of Canary Islands are 16.0% less expensive than the national average property prices of Spain

Is any property below €50,000 is a cheap Canary Islands property!

Are cheap Canary Islands properties only to be found at auction or as bank repossessions? Yes!

How much below market value does a Canary Islands property need to be to be considered cheap? €75,000????

Here is a list of the expenses that you will have to pay to buy your property in the sun:

1. Notary (Solicitor), who charges according to an industry fixed scale, his charges may range from 500 € to 600 €.

2. Canary Government Land Registry fees, as a rule of thumb, 40% of what the Notary charges.

The Taxes :

1. If you are buying a previously owned / re-sale property you are obliged to pay a Government Transfer Tax (ITP) at 6%.

2. If you are buying a brand new property or an off plan property or property in the course of construction from a promoter, developer or property trader, then you should pay VAT (IVA) at 7% plus Stamp Duty at 0.5%.

3. The VAT (IVA) rate increases to 16% if you are purchasing a bare plot of land, commercial premises or garage/parking spaces.

4. "Plusvalia" is an aditional tax levied by the local Town Hall based on the particular zonal area where the property is situated, on the surface area of the land, on the catastral value and on the date of the previous title deed. This tax may range from a few thousand pesetas to as much as several million pesetas on larger properties with a lot of land. By law the vendor is obliged to pay this tax but it is common practise for the parties to negotiate on who is to assume this liability.

5. Finally please bear in mind that your lawyer will charge fees for all of his professional services, that normally will range from 1% to 2% of the price plus VAT (currently at 16%).