What buying in Tenerife costs, beyond the price

The question always arrives on the second call, never the first: “besides the price, what else do I pay?” The short answer is between 8% and 11%, and the gap between those two figures is not small: on a €900,000 house it is €27,000 from one end to the other. It is worth knowing what it depends on.

The tax, which is most of it

If you buy from a private seller you pay ITP, the transfer tax, which in the Canaries is 6.5%. If you buy a new build from a developer there is no ITP: you pay IGIC at 7% plus stamp duty. Two different routes, and the second usually costs a little more, though the difference is offset by the house being new and needing no work.

One detail that costs money and almost nobody explains: since 2022 the transfer tax is not calculated on what you pay but on the reference value published by the land registry. If you buy below that value, the tax office will still assess you on the reference value. Worth checking before the deposit contract, not after.

The NIE, which is not a minor formality

You cannot sign without an NIE number. It is requested at a police station or at the consulate in your country of residence, and in high season the appointment takes three to six weeks in Tenerife. It is the number one reason a purchase is delayed, and it is avoided by applying the same day the deposit contract is signed.

We have never seen a deal collapse over price. They collapse over timing, and timing is almost always the NIE or the mortgage.

And after you buy

• Council tax: between 0.4% and 0.9% of the rateable value a year, depending on the municipality.
• Refuse and drainage: €80 to €200 a year.
• Community fees, where they apply: €60 to €400 a month depending on pool and gardens.
• Non-residents: form 210 is filed every year even if the house sits empty.

That last point surprises a lot of people. If you are a non-resident owner and do not let the house, the tax office treats it as producing an imputed income and it must be declared anyway. It is not much money, but failing to file accrues surcharges for years, and it surfaces exactly when you want to sell.