How Much Does It Cost to Buy Property in the Canary Islands? Taxes, Notary, Registry and Real Expenses
When buying a property in the Canary Islands, the purchase price is not the only cost to consider. You also need to calculate taxes, notary fees, registry costs, possible mortgage expenses, document management and other costs related to the purchase process.
One of the most common questions among buyers interested in Fuerteventura or the Canary Islands is:
how much does it really cost to buy a property?
The answer depends on the type of property, the purchase price, whether a mortgage is involved and which services are needed during the transaction. In general, in addition to the price of the property, it is wise to allow an additional budget for taxes and related expenses.
Which costs should you consider when buying property in the Canary Islands?
The total purchase cost is not made up only of the property price. Before making an offer, it is important to have a clear overview of all the expenses involved.
Property price
This is the price agreed with the seller and stated in the notarial deed of sale.
Purchase taxes
These depend on the type of property: resale property, new build or another specific case.
Notary and registry
These costs are necessary to formalise the purchase and register the property in the buyer’s name.
Possible mortgage
If you buy with financing, you need to consider bank costs, valuation and required documentation.
Advice and management
Support may be useful for checks, documents, translations, bank matters, NIE and coordination with the notary.
Post-purchase expenses
After the purchase, there may be utilities, community fees, IBI, rubbish tax, insurance and possible maintenance work.
ITP in the Canary Islands: the main tax for resale properties
If you buy a resale property, meaning a second-hand property sold by a private seller or by a seller who is not acting as a developer, the main tax is normally ITP, the Property Transfer Tax.
In the Canary Islands, the general reference for ITP on resale properties is normally 6.5% of the purchase price. This tax is one of the most important items to calculate before buying.
Quick example
Property price: €200,000
ITP 6.5%: €13,000
Notary, registry and other possible expenses must then be added to this amount.
New property
For a new build, the tax system is different from that of a resale property.
IGIC and AJD: what you pay on a new build property
If you buy a new property directly from a developer, ITP is normally not paid. In this case, in the Canary Islands, IGIC applies instead of the VAT used in mainland Spain.
For new build properties, IGIC is generally indicated at 7%. It may also be necessary to consider AJD, the Stamp Duty / Documented Legal Acts Tax, together with notary, registry and other related costs.
Notary, Land Registry and document management
A property purchase in Spain is formalised before a notary. After signing, the deed is registered in the Land Registry, so the property is officially recorded in the new owner’s name.
Costs to consider at this stage
- Notary fees for signing the deed of sale
- Land Registry fees
- Possible administrative support or gestoría
- Translations or language assistance, if needed
- Document checks before signing
These costs vary depending on the value of the property, the complexity of the transaction and whether there is a mortgage or other related documentation.
Additional costs if you buy with a mortgage
If you buy with a mortgage, the process requires more documents and more time. The bank will need to analyse your financial situation, the origin of the funds, the value of the property and the viability of the transaction.
In this case, there may be additional costs such as valuation, bank management, insurance requested by the bank and specific notarial timings related to the mortgage signing.
With a mortgage, also consider:
- Bank valuation of the property
- Approval times for financing
- Income documentation
- Possible linked insurance policies
- Bank costs and loan conditions
Other expenses you should not forget
After signing before the notary, there are other practical costs to consider. They are not always large amounts, but they are part of the real purchase and management budget.
- Change of water and electricity contracts
- Community fees, if the property is part of a complex
- Annual IBI property tax
- Rubbish tax, if applicable
- Home insurance
- Small works, furniture or initial maintenance
How much does it cost to buy a €200,000 property in the Canary Islands?
Here is a simple example to understand how to calculate the budget. The figures are indicative and should always be checked for each specific case.
| Item | Indicative calculation | Estimated amount |
|---|---|---|
| Resale property price | Agreed price | €200,000 |
| ITP | 6.5% | €13,000 |
| Notary and registry | Variable | Approx. €1,000 – €2,000 |
| Management / advice / documents | Variable | To be assessed |
| Recommended budget | Price + purchase costs | Approx. €215,000 – €220,000 |
Mistakes to avoid when calculating costs
Many buyers look only at the listing price and forget taxes, notary costs, registry fees, possible mortgage expenses and post-purchase costs. This can create problems when it is time to sign.
Do you want to know how much it would cost to buy property in Fuerteventura?
Canary Inmobiliaria helps you calculate the real budget before buying: price, taxes, expenses, documents, notary, possible mortgage and property checks.
Frequently asked questions about buying costs in the Canary Islands
How much does it cost to buy property in the Canary Islands besides the purchase price?
It depends on the type of property and the transaction. In general, you need to consider taxes, notary, registry, possible mortgage, document management and post-purchase expenses.
What tax do you pay on a resale property in the Canary Islands?
For a resale property, the main tax is normally ITP, generally indicated in the Canary Islands at 6.5% of the purchase price.
What tax do you pay on a new build property in the Canary Islands?
For a new build purchased from a developer, IGIC is normally applied, generally indicated at 7%, and it may also be necessary to consider AJD.
Who pays the notary when buying a property?
In practice, many costs related to the purchase are paid by the buyer, but it is always important to check the specific conditions of the transaction before signing.
Is it better to calculate costs before making an offer?
Yes. Before making an offer or signing an arras contract, it is important to know the real budget needed to complete the purchase without surprises.