We show the 10 steps that, as a foreigner, you must take to buy a home in Fuerteventura, as well as the associated taxes and costs, with tax and legal advice.
Obtain the NIE to buy a house in Fuerteventura
Getting the NIE is the first step, and in fact one of the most important, if you are looking to buy a house in Fuerteventura.
The NIE is the identification number that you are granted as a foreigner, and it is essential to carry out any type of economic activity or financial transaction, such as the purchase of a home, as well as to register as the owner of the home once purchased.
Requesting this number is quite simple, and you can do it from abroad (at the Spanish embassy while still in your country of origin) or directly in Spain.
If you are looking for a house in Fuerteventura, you must request the appropriate NIE for your situation:
- If you are going to buy the house, but you are not going to live in Spain (that is, you will only travel to the country for that reason) and you are a non-EU citizen, you will need a NIE as a non-resident.
- If you are going to be in the country more than 183 days a year, regardless of whether you are a community member or not, you must apply for a resident NIE.
- If you are from the European Union, but you are only going to be in the country for the duration of the sale, you can obtain a temporary NIE.
Our recommendation is that you consult your real estate agent, who works with immigration lawyers, to obtain the NIE quickly and easily, since sometimes it will not be granted unless you adequately justify the reason for which you are requesting it, and also Getting an appointment with the immigration office can be an almost impossible task.
Open a bank account in Fuerteventura
Although it is not 100% necessary, having your bank account in Fuerteventura will speed up the process and facilitate the transaction in its different steps when buying a house on the island.
This bank account will be necessary to pay the notary fees and all other costs associated with the purchase of the home.
In addition, the usual thing is that having the money abroad supposes delays and extra complications.
Once you have the NIE, our recommendation is that you go directly to open an account in the bank of your choice in Fuerteventura.
Negotiate with the owner
When you have found the desired house in Fuerteventura, it is time to agree on a price with the seller.
This part can be especially complicated and it is recommended that you go hand in hand with your real estate agent, who, in addition to helping you select the right house for your interests and financial situation, will represent you before sellers, who will try to raise the sale price of the house in Fuerteventura.
This is when having a real estate agent in Fuerteventura is necessary, since they will speed up the process and even negotiate on your behalf.
An important piece of advice before you start negotiating is to really understand what the “real” market price of the property you intend to buy in Fuerteventura is.
Find the right mortgage if you need financing
If you are planning to buy a house in Fuerteventura and need financing, it is time to start looking for a mortgage.
At this stage, we recommend that you compare and choose the credit institution with which you will finally contract.
Consult with your real estate agent about the different interest rates and evaluate the plans offered to determine which is the most suitable for you, since the conditions can vary considerably.
Making a decision at this stage will facilitate the subsequent process, because it requires prior research that takes time. If you are not a resident, you will have to pay 15% more deposit compared to residents.
Remember that when looking for a mortgage for your house in Fuerteventura, it is advisable to have the advice of a financial professional who can help you find the best options and guide you through the process.
Do not hesitate to compare the offers of different entities and make sure you understand the terms and conditions before committing to a mortgage in Fuerteventura.
Reservation contract and deposit contract
Once the price has been agreed with the seller of the house in Fuerteventura, the next step is to sign what is known as a reservation contract.
This document specifies that the price of the property has been agreed and is used to confirm that the house will be removed from any online platform where it is advertised, and that the seller or their real estate agent will stop offering it to new buyers.
Deposit contract for the purchase of a house in Fuerteventura
The earnest money constitutes the private sales contract in which a real commitment to purchase the home at the agreed price is demonstrated.
For this contract to be valid, you will have to make a deposit payment, as confirmation of your purchase intention to the seller (this payment will be deducted from the final payment), and the seller will receive that money confirming that he will sell to you .
There are two main variables to consider when making the payment of the deposit contract:
- The amount of money that you pay as confirmation, which is usually 6,000 euros (although this amount can be negotiated to increase or decrease it).
- The duration of the deposit contract. We recommend agreeing on a 90-day term, so that you have enough time to make an appropriate decision when contracting a mortgage (since the banks will not take you seriously until they see this contract).
However, there are some negative consequences in case of non-compliance:
- If you withdraw after paying the deposit contract, you will lose that amount of money.
- If it is the seller who decides not to continue with the process, they must return that same amount multiplied by 2.
It is important to have the advice of a lawyer specialized in real estate transactions in Fuerteventura when signing these contracts, to ensure that you are protected and comply with all legal requirements when buying your home on the island.
Request an Assessment to compare the market price in Fuerteventura
The next important step in the process of obtaining a mortgage for your house in Fuerteventura is to obtain an official valuation, because the total amount that the bank will lend you is based on the results of this valuation, that is, on the official value determined.
Ideally, the value found through this valuation is equal to or even higher than the price agreed with the seller.
In the event that the appraisal shows a lower value, the bank will lend you only 50% or 60% of the assessed amount, and you must pay the difference.
Ask your real estate agent to manage this valuation, contrasting their data with those of the appraiser.
Preparation of the necessary documents for the purchase
Before going to the notary, it is necessary to prepare all the required documents and make sure that the property does not present any defects.
At this stage, it is very useful and advisable to have the assistance of a lawyer (to ensure that you are not buying a property with hidden defects or other similar problems) and also of an architect who can thoroughly assess the situation of the house.
What are the necessary documents?
- Property Registration Certificate: This document provides all the details about the property, including information on previous owners, classification (residential or commercial), existing debts or mortgages, among others.
- ITE technical inspection of buildings): This inspection confirms that the apartment or house is in good structural condition.
- Debts of the current owner: You must check if the property has outstanding debts from the last years, since once you become the owner, you will be responsible for the debts of the last 3 years.
- Public deed. Look at the next point.
Go to the notary in Fuerteventura to sign the public deed
On your first visit to the notary, he will draw up the deed of the property and the agreement with the seller, and attest to it.
This stage is crucial for you, since the notary will help you fully understand all the conditions of the contract, so that you know exactly what you are signing and agreeing with the seller.
Subsequently, you will go to the notary to carry out the official signing of the deed of sale, which is the last step before the property is completely yours.
Who will attend?
All parties involved in the transaction will be present at the signing. This includes the buyer, seller, representative of the bank that will deliver the check with the purchase money, real estate agent and lawyer, in addition to the notary.
Finally, you will receive the keys to your new home, but the process will not be finished yet.
Property registration in Fuerteventura
Finally, you must register your new house in the Property Registry, which is a process that will identify you as the new owner and will require the payment of the property transfer tax and the tax on documented legal acts to the regional government.
In addition, the transfer of ownership of the different public services, such as gas, water and electricity, will be carried out.
It is important to comply with this procedure to guarantee the legal security of your property in Fuerteventura.