Buying Property on Lanzarote

Whether you have arrive in Lanzarote seeking employment, or with plans to retire, at some point you will want to abandon your rental and purchase property. Rental properties can be difficult to find on Lanzarote. As a tourist destination, many property owners prefer to let their homes to visitors to the island. People on Lanzarote on holiday are typically willing to pay more for homes and villas than long term lets. Typically a home lets to tourists for twice the amount the homeowner could receive for a long term resident.

Buying a home on Lanzarote is an appealing idea for many. Property sales in the UK have been sagging, and by some estimates nearly half of all first time home buyers in the UK will buy property outside of the country.

For those with an affinity for the Canary Islands, Lanzarote is a wonderful place to purchase property. There are several resorts in the area, such as Puerto del Carmen, which drive the price of property up and make splendid neighbors.

For those looking at property to buy in Lanzarote, it is worth noting that flats and villas are in particular demand, with homes lagging somewhat. Whether you are interested in buying a villa or a home, it is important to use a reputable estate agent for your property buying transaction. The buying process in Lanzarote, while relatively straightforward, is involved, and requires the work of someone who understands what is required. If you have been in Lanzarote for a few months before buying property, you probably know enough people to use referrals to find a competent real estate agent.

A proficient estate agent will help you determine the real cost of your home. While the home owner may have a specific amount of money that they want for their home, there are often other costs that you will be required to pay as well. Many homes in Lanzarote have what are known as communal costs, which are the shared costs of the community, such as for a community swimming pool or garden. These costs are not always insignificant, and must be considered before committing yourself to a mortgage. To prevent any misunderstandings later in the buying process, be upfront with your estate agent about the amount you can afford before you begin looking at homes.

The Process

It is much easier to purchase property once you are on the island. Although some people prefer to purchase a home long distance, for those that are not familiar with the island it makes sense to let for a while before committing to a piece of property. This allows you to decide what type of property you want, what areas you would like to live in, and what amenities you would most enjoy. An experienced estate can help you narrow your selection, and arrange for you to visit properties that interest you and meet your requirements.

When you find the perfect piece of property, the estate agent will conduct a title search to check to see if there are any outstanding liens on the property. Once they have completed the initial title search, they will then conduct a second title search to check for outstanding bills, such as utility bills, that are on the property. Once these two title searches come back, you can continue the property buying process.

Sale of a home or property in Lanzarote is through private contract. For your own peace of mind, it is important to understand exactly how private contracts work in Lanzarote. The contract is written out, and specifies all details involved in the home buying process. This includes the price, any pertinent details about the property, how the property will be paid for and how much of a deposit is required. Typically, the seller will expect a 10 percent deposit.

Both parties must agree on the written contract, and when the deposit trades hands, the written contract is officially in effect. The buyer and the seller will both visit a notary, and sign the deed as the notary witnesses it, which will officially transfer the ownership of the property.

The purchaser will pay 3 percent of the purchase price of the home to the Spanish Tax Authority. The purchaser has one month to pay this fee. If you purchase the home or property before you become a resident of the island, you must also make a capital gains declaration. You have four months from the time that you sign the deed to make this declaration. Once you register the deed, for an additional fee, you are an official land owner on the island of Lanzarote.

The entire process may seem lengthy, but, with an experienced Lanzarote estate agent, it is possible to complete a transaction seamlessly, and most contracts are executed and property changes hands within two months.