Information for buyers

General information on buying a property in Gran Canaria

Real estate transfer tax in Gran Canaria

6.5 percent for existing properties

PlusValía (capital gains tax)

According to the law, this is at the expense of the seller and must be paid after the purchase/sale.
The Municipal Property Transfer Tax (PlusValía, or Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana) is a relatively "modern" tax that the Spanish state makes use of and the collection of it is the responsibility of the municipalities. The background of this tax is that over time the owner of a property benefits from an increase in the value of his property due to improvement measures taken by the municipality and the state would like to benefit from this as well. This can be compared to the costs of local residents when sewers, roads, pavements, etc. are renewed
The PlusValía has to be paid whenever a property is transferred to a new owner. It does not matter whether the transfer is made on the basis of, for example, a property purchase agreement, a gift or an inheritance (because a property is in the estate in Spain). There are only two cases where the tax is not payable: in the case of agricultural land (suelo rústico) or where less than one year has passed since the last transfer. The municipality calculates the amount of the tax on the basis of the cadastral value and its own statistics, which may vary from municipality to municipality.

Own-use tax

This tax is payable by the owner if he/she states in the annual tax return that he/she only uses the property for his/her own use and does not rent it. It amounts to 1.1% of the "cadastral value" (which is far below the market value) of the approx. 1.1%, 24% is due once a year. If the cadastral value is e.g. 30,000 €, about 80 € per year are to be paid to the tax office as own-use tax.


Buildings/household insurance

Depending on the property, insurance company and services, there are price differences, on average you can calculate between 150€ - 250€ per year.

Spanish bank account

To pay the property and the running costs - e.g: water, electricity, telephone, community charges, property tax, etc. it is recommended to open a local bank account here in Spain. However, due to today's SEPA it is not always necessary. The employees in the local banks usually speak good english and also other languages. Ask the consultant for a bank account that is free of charges.


Brokerage fee

In Gran Canaria the seller pays the brokerage fee. Unless otherwise agreed.

Form of payment of the property at the notary

Please never buy a property without a notarial deed and the prior verification of the relevant documents. Payment is almost always made by certified bank cheque. Bank charges may apply, depending on the bank. It is also possible to make a direct online transfer during the notary appointment from an escrow account, e.g. from your future tax office. The remittance receipt is considered as a proof of payment and will be included in the notarial purchase deed. Frequently there are also purchase option contracts, also called preliminary contract or reservation contract, in which you agree on a binding notary appointment and reserve the corresponding property with a deposit of 10% of the purchase price. In this contract it is also ratified among other things that the option giver (seller) sells the respective real estate free of debts and burdens and without any rights of third parties.



Some owners like to take the opportunity to rent out their property. Either to cover the annual operating costs or to achieve a good return on investment. As you can see from our website, you are also in good hands with us in this respect. The demand for rental properties, no matter whether long-term rental or overwintering in Gran Canaria, is very high and the offered ones are quite low.

Notary and land register entry

The notary's fees are based on the registered purchase price in the notarial deed of sale (escritura). For a flat at a purchase price of approx. 100,000 €, you can calculate between 800 € - 950 € depending on the time and effort involved, whether, for example, notarial powers of attorney have to be issued, etc. The entry in the local property register / land register (registro) would be about 400 € at the above mentioned example.


Land tax (IBI)

It is always based on the land register value. For an average 1 bedroom flat e.g. in Playa del Inglés between 180€ and 250€ annually.

Waste collection (Basura)

The fees for the waste collection are about 60 €/year.

Comunidad (Community costs)

The amount of the monthly house money varies between 30€ and 300€ per month depending on community. In some communities this already includes the costs for water and electricity of the respective flat, bungalow or terraced house. This money is needed for operation, care of the complex, lighting of the communal areas, the lifts, pool, administration, maintenance and personnel costs such as gardener or caretaker within a residential community.

Electricity & water

It is much cheaper compared to most other european countries. Experience: An apartment inhabited by two people will pay between 60€ - 70€ per month for water and electricity (depending on consumption).

N.I.E - Number

Is a "foreigner identification number" or also called "tax number" below. This is mandatory and must be presented when buying a property. You apply for this N.I.E. number personally at the police with a valid identity card/passport and a completed form, which we have at our disposal. Time needed for application is approx. 1-2 hours. It is possible and not unusual to apply for/pick up the NIE number after the notary appointment and then hand it in at the notary's office. You can also apply for the mentioned NIE number in in foreign countries at the spanish consulates.


Tax Representation

You would like to purchase a property in Gran Canaria, but would like to keep your main residence in your home country and not move to the Canary Island. In this case, almost always the rule with foreigners, you need a tax representative located in Gran Canaria - for this purpose it is recommended to give this tax representation to a local tax office. We are happy to make recommendations here on request. The fees for the tax representative and the annual obligatory tax return are approx. 140€ each year.


How long does a purchase take?

Should you wish to buy the property after the visit, we need about 1-2 weeks to prepare the notarial sale and to organize all the necessary documents. Furthermore, you should open a bank account in Gran Canaria, but it is no longer absolutely necessary, apply for the NIE number with our help, be in possession of a valid identity card and have the complete purchase sum at your disposal. Should partial financing be necessary, the purchase procedure can be delayed for several weeks. Banks take different lengths of time to process a loan application. For foreign, non-resident buyers, Spanish banks expect a minimum equity of 30%. Here, however, decisions are made on a case-by-case basis, many factors have a corresponding influence on the granting of a loan - including the estimated value of a valuer authorised by the bank.

Buyers about us

Many thanks for the numerous positive reviews on Google, Facebook and Trustpilot.

Kai does a super job.
He is always available, super friendly and competent.

Marco Thomsen

Gran Canaria, 

We were advised and looked after very professionally, without time pressure and pushiness. Especially if you don't speak spanish or only a little, this is the right address.

Andreas Bodensee

Gran Canaria, 

Our service for buyers

Buy a property

Encyclopaedia for buyers

We accompany you step by step on your way through the buying process and find your dream property in Gran Canaria.

Buy a property

Nothing found?

Leave your search request with Sun World Immobilien!

Contact us now

We take care of you until the notarial deed of sale and beyond. Furthermore, we are happy to advise you on the procedures, the documents necessary for the purchase, the pricing and tax issues. At any time, we will gladly recommend reliable, competent tax offices, lawyers, craftsmen, building cleaners, etc.

Our advice and support naturally extends far beyond the purchase. In case of possible modernisation work of your new acquisition, the purchase of a car, the renting etc. we will gladly remain your competent and trustworthy contact person.

Sunny greetings from Gran Canaria,

Kai Derichs & Team