Resales: ITP and the taxable base
On a private resale, the buyer normally files ITP at the Canary Islands standard rate of 6.5%. The applicable taxable value must be checked rather than assumed to be the agreed price.
Do not budget a reduced rate until habitual-home use, income, existing ownership, value and every other condition have been documented.
- Confirm it is legally a resale
- Check reference value and taxable base
- Test relief conditions before signing the deposit contract
New builds: IGIC and AJD
Where a developer makes an IGIC-taxable sale, standard IGIC is 7% and AJD for documents relating to IGIC-taxable transactions is normally 1%. Parking, storage, furniture and services should be itemised.
Ask the developer for a schedule separating net price, taxes and extras.
Notary, Land Registry and advice
Regulated notarial and registry fees depend on the deed, value, copies and related operations. Conveyancing and administrative services are not taxes: request a written scope and quote.
Keep deeds, tax forms, payment evidence and invoices; they may matter when the property is sold later.
Mortgage and post-completion reserve
Valuation, translations and bank conditions belong in a separate finance budget. The lender is normally liable for AJD on the mortgage deed, although the buyer may still bear other contractual costs.
IBI property tax, community fees, insurance, utilities, maintenance and possible non-resident filings continue after completion. Keep a cash reserve.