Lanzarote is one of the Canary Islands, which attracts not only tourists but also investors who want to buy property here. Regardless of whether you are looking for a villa by the sea or an apartment for permanent residence, buying a property in Lanzarote has its own characteristics. In this article, we will analyze the process of buying a property in Lanzarote, step by step, and also answer the questions that buyers most often have.
Stages of buying a property in Lanzarote
- Finding a property
The first step is to choose a suitable property. Lanzarote offers a wide range of properties: from villas with ocean views to cozy apartments in tourist areas. Popular places to buy are Playa Blanca and the capital of the island, Arrecife. If you are looking for a property for rent or for permanent residence, it is best to contact local real estate agents. They will help you find options that suit your needs.
- Property inspection and legal due diligence
After choosing a property, it is recommended to conduct a legal due diligence of the transaction. This includes checking the documentation of the property, its owner and any debts or restrictions on sale. In Lanzarote, this process is standard, but it is better to entrust it to a lawyer to avoid possible risks.
- Signing a preliminary contract
At this stage, the buyer and seller sign a preliminary purchase and sale contract, which sets out the terms of the transaction. Usually, when signing the contract, a deposit of 10% of the value of the property is required.
- Registration of documents
One of the key stages of the procedure for buying a property in Lanzarote is collecting the necessary documents. You will need:
Passport or identity card
Foreigner Identification Number (NIE)
Bank account in Spain
Purchasing a property in Spain requires registration through a notary. The notary checks all the documents and confirms the legality of the transaction.
- Payment and taxes
After signing the main contract, the final payment is made. It is important to consider taxes when buying property in Lanzarote:
- Property Transfer Tax (ITP) – 6-10% of the property value
- Tax on documented legal acts – 1-1.5%
- Notary and registration fees
- Property registration
- The final stage is registering the property in the Property Registry. This can take several weeks. After that, you become the official owner of the property in Lanzarote.
Features of buying property in Lanzarote for foreigners
For foreign buyers, the process is not much different from buying for residents of Spain. The main requirement is to obtain a foreigner’s identification number (NIE), which is necessary for any legal transactions. In addition, to complete the purchase, you may need the help of a lawyer who will help you comply with all legal requirements.
What taxes are there when buying property in Lanzarote?
There are several types of taxes and fees to consider. As mentioned above, the key ones are:
- Property Transfer Tax (ITP), which depends on the value of the property
- Documented Acts Tax, which is charged when signing the contract
These costs must be included in your budget.
Property Prices in Lanzarote
The cost of property in Lanzarote varies depending on the location and type of property. Villas by the sea and properties in tourist areas can be significantly more expensive than apartments in the capital of the island.
For up-to-date information on prices, it is better to contact local realtors who will offer options based on your preferences and capabilities.
Investments in property in Lanzarote
Lanzarote remains an attractive place for property investments due to the stable tourist flow and high demand for rental housing. This makes buying property here not only a profitable investment, but also a way to generate passive income. Properties in coastal areas or popular tourist centers can be especially interesting for investors.
Conclusion
The procedure for buying a property in Lanzarote is a standard process that includes several stages: searching for a property, checking documents, formalizing the transaction through a notary and registering the property. For foreigners, it is important to consider obtaining a foreigner’s identification number and possible tax obligations. Regardless of the purpose – whether it is buying a home for living or a property for rent, Lanzarote offers many options for successful investment in real estate.
If you are planning a purchase, do not forget about important points such as taxes and additional costs, and be sure to contact professionals for legal support of the transaction.