Purchase tax, fees and on-going costs
1. Transfer Tax (Stamp duty)
As in England there is the transfer tax (also called Stamp Duty and Land tax), also called ITP Impuestos sobre las transmisiones patrimoniales in Spain, which is the tax you would pay on second-hand houses and is to the current moment at 6.5%. If it is a brand new house that has just been build and you are the first owner and buyer of the property, you would pay the value added tax which is 7%
2. Land Registry
The fees for the land registry depend highly on the price of the property you are buying but are 0,5% of your purchase price.
Public Notary Fee
The cost for the appointment and signing of the deeds in the public notary also depends on various factors and can be between 800-2000€ approximately.
Legal Fees
As already mentioned before, we recommend you to involve a lawyer who will than take care of all the payments stated above so you do not need to worry about the hassle of going to local tax authorities and other time consuming paperwork. There are all sorts of lawyer in Lanzarote such as in the rest of the world! Make sure to go with one that has a good reputation, is transparent, has an established office and can communicate with you in English without any problems! Another indicator of a good lawyer is the existence of an secured escrow account, where your deposit will go. Usually lawyers here charge around 2500€ up to 3000€ or even a 1% of the purchase price
Monthly Costs
Water
This cost is based on your consumption so it is difficult to determine, the average cubic meter cost is 1,76€ if you have a contract through Canal Gestión (see the link attached for more information).
Electricity
Again this is a cost based on the consumption, about of people using the electricity, gadgets, appliances, etc. The average cost per kilowatt per hour is between 0.1305€/kWh and 0.2133 €/kWh depending on the time of the time of the day you are using electricity. The average cost per month two bedroom villa with pool is around 90 – 180€ but could be more if you have a pool heating.
Alarm System
35-50€ per month.
Wifi & Internet
You can obtain international channels with local companies here as well as fibre optic broadband for around 30-50€ per month depending on the package.
Community
These are fees you pay to the community of owners, which usually take care of the general maintenance (pool, gardens, gates security, administration, fumigation, etc.). Averagely between 24-80€ but there are communities that pay
Pool Maintenance
If you hire a pool man they usually charge between 100-120€ per month and come once a week to clean and apply chemicals. If you have a private pool and there is no communal pool in the community, the charges of the previous costs are usually lower.
Yearly Costs
Council Tax
Depending on the size of the property, averagely between 300-700€
Rubbish Tax
23-35€ depending on the municipality.
House Insurance
Depending on the size and use averagely between 250€-500€.
FAQs about buying a property
What are the requirements to buy a property in Lanzarote?
It is not necessary to be a Spanish resident to buy a property. You only need a Foreigner Identification Number (NIE) and a bank account in Spain.
Is it better to buy a new or second-hand property?
Both options have their advantages. New properties tend to have better warranties, while resale properties may offer more central locations and lower prices.
How long does the purchasing process take?
The process can take from one to three months, depending on several factors such as financing and the availability of the notary.
