Frequently Asked Questions

Yes. We provide comprehensive support throughout the purchase process, helping both local and international buyers navigate the practical and administrative requirements of purchasing property in Tenerife. Our support includes: • NIE application, residency assistance and bank account opening for international buyers • Post-sale property management to ensure a smooth and hassle-free transition • Utility transfers and changes of ownership • Updating property information with the Cadastre • Assistance with property-related tax matters • Registration with homeowners’ associations and communities • Coordination of other necessary administrative procedures • Comprehensive holiday rental property management providing owners with professional, reliable support Our aim is to make the entire experience as smooth and stress-free as possible, from the initial purchase through to post-sale support.

Property buyers in Tenerife, including non-residents and non-EU buyers, are generally subject to the same property taxes as local buyers. For new-build properties, buyers generally pay 7% IGIC (Canary Islands General Indirect Tax), together with applicable Stamp Duty (AJD). For resale properties, buyers generally pay Property Transfer Tax (ITP) instead of IGIC. The standard ITP rate is 6.5%, although reduced rates may apply in certain circumstances. In addition to taxes, buyers should budget for notary, Land Registry, legal, and other transaction-related costs. As a general guide, total taxes and closing costs are typically around 9–10% of the purchase price, although the exact amount will vary depending on the property and the buyer's circumstances.

The main taxes to consider are: • Capital Gains Tax: Residents generally declare the gain through IRPF, while non-residents are subject to Non-Resident Income Tax (IRNR) on the gain. • 3% withholding for non-resident sellers: When the seller is a non-resident, the buyer generally withholds 3% of the sale price and pays it to the Spanish Tax Agency as an advance payment towards the seller's tax liability. • Plusvalía Municipal (IIVTNU): This is a local tax relating to the increase in the value of the land and is generally paid by the seller. The amount depends on the municipality, the cadastral land value and the period of ownership. There may also be deductions, exemptions or other considerations depending on the seller's individual circumstances.

Tenerife is one of Europe's most established year-round tourism destinations, attracting 7.56 million tourists in 2025, an increase of 2.4% compared with the previous year. This consistent flow of international visitors, combined with Tenerife's year-round climate, strong infrastructure, international connectivity and diverse property market, creates attractive opportunities for property investors.

Depending on the property, location and investment strategy, Tenerife property investments can offer potential annual returns in the range of 8–10%. This can be particularly attractive for properties positioned for the holiday rental market, where Tenerife's strong year-round tourism supports consistent demand. Actual returns will vary depending on factors such as the purchase price, rental income, occupancy levels, operating expenses, property management and market conditions. We also provide professional holiday rental management, with a focus on maximising occupancy, rental income and the overall profitability of each property.

Tenerife offers several exceptional areas for luxury living, each with its own character and lifestyle. The most sought-after locations include Costa Adeje, La Caleta, El Madroñal, Golf Costa Adeje, Rocabella and the Golden Mile, known for their premium residences, coastal settings, exclusive amenities, fine dining and lifestyle offerings. Abama is another standout destination for those seeking privacy, exceptional surroundings and an exclusive resort lifestyle. At Prime Brokers Realty, we specialise in Tenerife's prime residential areas and help clients identify the location that best matches their lifestyle and investment objectives.

Tenerife is well suited to family life, offering a wide choice of public and private schools, international schools, sports facilities and activities for children of different ages. Families can choose between the local Spanish education system and a variety of international educational options, including British and other international curricula. Beyond school, the island offers numerous sports clubs, academies, cultural activities, outdoor pursuits and organised activities for children and teenagers. Areas such as Costa Adeje, La Caleta and the surrounding communities are particularly popular with families due to their residential environment, amenities, schools and access to everyday services. At Prime Brokers Realty, we understand that finding the right home also means finding the right environment for your family. We can help you explore locations based on schools, activities, lifestyle and day-to-day convenience.