The complete guide to selling a property in Tenerife
A step-by-step guide from preparing your property for sale to completion and taxes.
Thinking about selling your property in Tenerife? From luxury villas overlooking the Atlantic to apartments, townhouses and investment properties, selling real estate on the island comes with its own market conditions, legal requirements and practical considerations. If you are a resident or an international property owner, knowing what to expect before putting your property on the market can make the process clearer from the beginning. In this guide, we take you through the key things to consider when selling property in Tenerife.
Preparing Your Property
Before putting your property on the market, the first step is making sure everything is ready for potential buyers.
This can include:
Reviewing the property's legal and cadastral information
Checking IBI and community fee payments
Confirming whether there is an existing mortgage or other charge
Obtaining the required energy efficiency certificate
Preparing the property for photography and viewings
Your agent can help coordinate the preparation, identify anything that could delay the sale and work with the relevant professionals to get everything ready.
Valuing Your Property
Setting the right asking price is one of the most important decisions when selling.
The valuation should take into account:
Location
Property condition
Size and layout
Views, terraces, pools and other features
Comparable properties
Current market conditions
Your agent can provide a market assessment and recommend a pricing strategy based on comparable properties and buyer demand.
Putting Your Property on the Market
Once the price and strategy are agreed, your property is prepared for launch.
This can include professional photography, video, floor plans, a carefully written property description and targeted digital marketing.
Your agent manages the presentation and promotion of the property across their website, property portals, social media and international networs.
Enquiries & Viewings
Once your property is on the market, your agent manages enquiries and arranges viewings with potential buyers.
They can answer questions about the property, its location and the purchase process, while making sure serious buyers receive the attention they need.
Offers & Negotiation
When a buyer is interested, they may submit an offer.
The offer can include more than the purchase price, such as the proposed completion date, financing requirements and other conditions.
Your agent can present the offer clearly, communicate with both parties and help negotiate the terms of the sale.
Due Diligence & Documentation
Before completion, the relevant legal and property information is checked.
This may include:
Ownership and title
Cadastral information
IBI
Community fees
Existing mortgages or charges
Energy certificate
Relevant licences and documentation
Your agent can help coordinate the different parties and make sure requested documents are provided promptly.
Reservation & Private Contract
Once an offer has been accepted, the parties may proceed with a reservation agreement and/or private purchase contract, commonly known as an "arras" agreement.
The terms and legal effects of the agreement should be reviewed carefully before signing.
Your agent can coordinate communication between you, the buyer, lawyers and other professionals involved.
Signing at the Notary
The sale is completed when the parties sign the public deed of sale before a notary.
The notary verifies the identity of the parties, the seller's ownership and the relevant information relating to the property.
Your agent can coordinate the practical arrangements and remain in contact with everyone involved until completion.
Taxes & Costs
Selling a property in Tenerife may involve several taxes and costs, depending on your circumstances.
These can include:
Capital gains tax
Plusvalía municipal
IBI
Mortgage cancellation costs, where applicable
Legal, administrative or professional fees
If you are a non-resident in Spain, the buyer generally withholds 3% of the sale price as an advance payment towards your non-resident tax liability.
The exact tax treatment depends on factors such as your tax residency, purchase price, sale price and personal circumstances.
Your agent can help coordinate with your lawyer or tax adviser so you understand the costs involved before completion.
After Completion
After the sale has been completed, there may still be a few administrative matters to take care of.
These can include:
Settling applicable taxes
Mortgage cancellation, where required
Final utility arrangements
Transfer of keys
Keeping the relevant sale documentation
Your agent can continue to assist with the practical details until the process is fully completed.
Selling a property doesn't have to mean managing every step yourself.
If you are considering selling a property in Tenerife, understanding the local market and the requirements involved can make the process much easier. From luxury villas and apartments to holiday homes and investment properties, every sale has its own considerations. Tenerife's property market attracts both Spanish and international buyers, making professional local knowledge particularly valuable. At Prime Brokers Realty, we help property owners understand the market, prepare their property for sale and navigate the practical and administrative aspects of selling real estate in Tenerife, with a clear approach from start to finish.
