a guide to buying, selling, building or renting a property in Fuerteventura

Experience has shown that through thorough analysis I can explain to my clients the steps to be taken to make a safe purchase or sale.

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Please share your thoughts and ideas with me. In return, I look forward to sharing our “know-how” with you and at the same time learning from your experiences and being able to develop myself further as a result.

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In my own experience, if you want to offer trustworthy and professional advice, you cannot focus on a single aspect of the overall legal situation.

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Rather, you have to have a 360-degree vision. This means that I can't leave my customers alone in the "paragraph law jungle" even after the purchase process.

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Owning a property means that you will have legal relationships with other individuals, or companies, institutions, tenants and neighbors, for example. And ultimately, unfortunately, this also harbors some potential conflicts.

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What you need to know about the property market in Fuerteventura

 

Fuerteventura was the last of the Canary Islands to be developed. This means we don't share the model of the other islands where development has been massive. The urban planning rules prevent a large concentration of real estate compared to Gran Canaria and Tenerife. There are no skyscrapers here, no huge shopping centers and no developments that take up large areas. Even if the environment here on the island is very diverse, the most important common principle of the island is that there are no crowded places.

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Yes, indeed: we have an attractive real estate market. It doesn't matter whether you want to invest or just live here: space is the highest luxury here on Fuerteventura.

 

On the other hand, we have the same legal model as mainland Spain, where legal certainty applies and offers security to all buyers and investors with public notaries, land registries, courts, administrative institutions, banks (who offer financing) and of course lawyers.

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So you don't have to rely on professional experts from outside the island if you want to buy a property in Fuerteventura. Because the island offers you every opportunity to get advice and meets all the legal requirements to become an owner or investor.

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With me and my team of experts you will find experienced professionals who will competently assist you on site.

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Buying a property in Fuerteventura

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Many people who come to Fuerteventura secretly dream of buying a property.

 

It's an exciting endeavor and the reasons they choose to do so vary widely.

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For some it's an investment - for others it's a second home for vacation. But all feel attached to and/or in love with the island (thanks to the sun, the light, the beaches, the proximity, the tranquility and the abundant open spaces).

But there are also some people who have simply worked long and hard to save the money for the planned purchase of a property on Fuerteventura.

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Many are then concerned (not without reason) because they have heard from other people who had the same dream and then “everything kind of went wrong” for them: These “unlucky people” ended up losing money and/or their homes even demolished because they were declared illegal or unsafe.

 

Do the same as in your country and be careful.

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Check, ask, check again and keep asking until you feel absolutely safe and have the peace of mind and absolute certainty you desire.

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Proceed in the same way as if you were buying a property at home.

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Some specific questions about buying a property: The planning questions
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One of the most interesting real estate products are the plots on which you can build your dream home. Today, many customers are pursuing this goal.

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I will inform and accompany you professionally together with my team of experts through all necessary steps. Please follow our advice and you will surely make your dream come true and thus definitely avoid a nightmare.

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You are lucky that we are not only experts in real estate law, but also in urban land law and planning. In this way, we combine profound knowledge from each of these 3 subject areas in order to be able to explain to you in detail how you have to proceed.

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First of all you should be aware that the planning issues are much more complicated than the real estate aspects as this type of right is based on documents where unfortunately some legal criteria are not always as clear as one would like.

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Some town planning plans come from the island government (Plan Insular), others from the municipalities and there are new regulations every few months.

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Please seek out an expert and avoid working with people who boast of absurd comments such as "I know the man from City Hall" or similar. Better stay away from such "insiders".

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A basic instrument is the application for the so-called "Calificación Urbanística" (urban planning certificate) at the town hall. A document detailing a property's buildability and some other planning requirements.

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Another element seems fundamental to us: georeferencing. We recommend commissioning a georeferencing survey for the property for sale in order to best locate the property and identify it easily.

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The Land Registry Act of 2015 introduced some requirements that make this possible and georeferencing measurement has thus become a fundamental tool that will save you conflicts regarding your property lines.

 

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How to buy a property in Fuerteventura?
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Real estate is usually the largest investment a person makes in their life.

 

So why not seek comprehensive advice before taking the next step?

 

Managing an investment requires expert advice. Don't let your dream become a nightmare.

From the first moment you have to take control of the situation. And that means you should choose a good team of experienced professionals to guide you through the whole process.

The language, documents and laws may differ from the usual documents you are used to and these differences need to be taken into account from the start.

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Investing in real estate should not be a matter of luck.

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It should be checked who owns the property, whether there are any debts on it, whether there are existing leases, whether the property is subject to any special regulations, what the tax implications are, what town planning permits are issued, whether the proposed use is legal, what money laundering regulations apply, what the costs are, how the procedure works, what contracts are concluded, how the utilities are connected, etc. etc. etc. …

Basically, the process of buying a property is similar to the rest of Europe, but the differences can become greater if you don't get the right advice. I myself always had a lawyer by my side when I made an investment and/or bought a property abroad. It is a reassuring feeling when you experience professional, competent assistance and support throughout the entire purchase process (and beyond).

 

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Pitfalls when buying a property in Fuerteventura

I believe in the law as the only valid guide.

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How many absurd statements from self-proclaimed "real estate experts" I have already had to listen to here on the island?

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Many! Here are just a few style blossoms in the original (unfortunately no joke!):

 

"We know a friend who can help us, although he's not a professional" / There is no official permit, but that's okay / You know, it's Spain / It doesn't need to be registered, it's through a private one Contract legal / You can start building the house before planning permission is granted / You don't need a lawyer / After the sale we will check if it is suitable for the intended use / Oh, we'll just legalize that retrospectively ... no problem / Where there is no prosecutor, there is no judge / etc. etc. etc.”.

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I'll spare you the rest of the crap.

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But investing in real estate must not be a gamble. In order to achieve a reliable result and to get legal answers, one must ask the right questions to the right people in order to ultimately receive adequate advice.

 

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The cost of buying a property in Fuerteventura
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You pay the purchase price to the seller, less any down payment already made.

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Additional costs in addition to the pure purchase price are the legal, administration and tax fees as well as the comprehensive support of the purchase project by the real estate agent.

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The key legal steps are due diligence, reviewing and amending the reservation contract if necessary, and assisting with the final signing date.

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The tax part includes filing the real estate transfer tax and stamp duty. Several administrative measures are required, such as B. Applying for the NIE numbers, preparing all documents for the notary appointment, changing utility contracts, etc.

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As a buyer, you should also cover the notary and land registry fees. You can expect a margin of around 10% for the costs and taxes incurred. There are some additional costs to consider when applying for a mortgage.

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Is it worth buying a property in Fuerteventura?
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The island of Fuerteventura, and especially the north of the island, offers many elements to get excited about:

 

Endless beaches, the best climate in the world, an international atmosphere, legal security (EU), connectivity (daily flights / stable internet), etc.

 

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Is buying a property in Fuerteventura a good investment?

As mentioned in the previous question, the equation works today.

But not only in terms of prices. There is also a big difference that we must not forget.

When investing in property you should be aware that we have a 12 month market for visitors as winter is peak season in the Canary Islands.

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You can rent out your property when you are not planning to use it and this will provide you with an income that will help you decide whether to buy a property. And not because of us, but because of the climate, the location, the sea and probably the mild weather.

This allows us to obtain returns much higher than the rest of Spain, where the season only brings income for 4-5 months. Thank the sun.

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What is the best place to buy property in Fuerteventura as an investment?

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I love the whole island.

For every taste you can find the right place on the island. Visit the island, feel the surroundings, meet the people and I am sure you will find a place to live.

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The north side of the island offers a variety of activities in a relaxed ambiance, with nautical sports, modern lifestyle and a vibrant local social life with an international twist.

The central part of the island offers a relaxed way of life with golf courses and quiet beaches.

The south invites you to enjoy the fantastic natural landscapes and the luxury hotels.

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Buying property in Fuerteventura from the UK
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BREXIT has changed some things. Probably true. British citizens will not have the same rights as other EU citizens. But that doesn't mean the situation has changed dramatically. Buying property is still a perfect option for these citizens and the UK-EU agreement maintains the basic principle of good neighbourliness.

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The property transfer process is the same for EU and non-EU citizens, including the costs and taxes associated with the process – everything stays the same. In summary, the cost only depends on whether the property being purchased is a new home for a developer or bank (first purchase/transfer) or a resale (second purchase/transfer). Also, it depends on the autonomous community where you acquire your property.

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The rights to permanent residency have been changed, as has the length of stay. The issue of immigration is one of the legal areas that has changed and that could affect you the most. You are allowed to visit Spain and your property on a regular basis throughout the year but there are some restrictions. As before, you can only stay in Spain for 3 months (within a 180-day period) before applying for a regular residence permit. And without having to apply for a tourist visa (you only need a valid passport and proof that you have sufficient financial means to support yourself while you are in the country). However, if you're looking to stay longer than 90 days, things have changed. After Brexit, UK citizens can no longer benefit from this free movement agreement and must apply for a regular residence permit. This is more complicated and requires certain prerequisites to be met.

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There are also some tax aspects that affect income. There can also be additional difficulties when applying for a mortgage loan. A few other changes will affect UK residents when buying a property in Fuerteventura, particularly if that property is in what is known as 'rural country'.

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If you want to buy a property, you need a military permit before signing the purchase contract.

 

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Buying a property in Fuerteventura from another EU country (France, Belgium, Germany, Italy, etc.):
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EU citizens have the same rights as Spanish citizens when buying a property.

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Be aware that Spain (even though it is a member of the EU) is a different country in terms of law and language. Therefore, it makes sense to be assisted by an experienced professional who acts according to the highest international standards of service and who can help you throughout the process.

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Be confident, the only goal of my work is to make your dreams come true. I ask you to accept that the rules are different here in order to achieve the desired end goal.

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I listen to my customers and I will accompany them throughout the process. My customers have the right to ask me "holes in the stomach". Together with my team of experts, I am able to answer all your questions competently at any time.

 

Important things that are checked by my lawyer before buying a property:

Who owns the property and therefore has the right to sell it?

Whether there are any debts on the property (e.g. a mortgage or a court decision)

Whether the property is rented.

Whether the property is subject to any special regulations, such as B. Social housing, planning restrictions, permitted uses of the property…

In the case of an urbanization, whether the seller is up to date with the community fees.

Whether the annual property tax (formerly “contribución urbana”) has been paid. If it has not been paid in the last five years, the new owner is responsible for paying it.

A due diligence where the solicitor carefully checks all titles, land registry details and all other relevant information.

 

 

Selling a property in Fuerteventura

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Whatever the personal reasons for selling your own property here on Fuerteventura, here are a few tips:

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You can do it yourself or hire a broker. You should set your price and expect to find an interested buyer. You are the one quoting the price, so consider the costs and expenses involved to get a correct net amount.

 

When you are selling a property, you should be aware that the ball is in the buyer's hands and they must carry out all the checks to ensure a good conclusion of the sale. You should provide all the necessary information about the property, receipts for tax payments and utility contracts to ensure you have a valid title.

 

Once the buyer has completed the necessary due diligence checks, a deposit is paid or a private contract is signed. By making this deposit (usually 5-10% of the agreed purchase price), both parties secure the mutual "binding promise" for the final purchase/sale.

 

If the buyer withdraws from the purchase, he loses his deposit. If you, the seller, fail to keep your promise, you may be required to pay the prospective buyer twice the deposit as compensation.

 

The transaction is completed at the notary when the full price is paid and ownership of the property is thereby transferred to you as the buyer.

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What is the right way to sell a property in Fuerteventura?
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Once the property is on the market, you can expect offers that try to lower the price or offer you different payment methods.

 

If you are looking for a quick sale, a cash buyer is the most desirable option.

 

But sometimes buyers need financing, which can delay the sale by a few months.

 

If an offer is accepted by you, you will record all the essential elements of the agreement in one document. in general, you must ensure that the property is free of encumbrances, mortgages, taxes and other encumbrances affecting your title.

 

Unfortunately, we had to find out more often than we thought that many titles had some flaws that had to be fixed before they could be sold.

 

As an example, here are the differences between the area indicated in the title and the area indicated by the land registry (which must be remedied before the sale).

 

But sometimes there is also a pool that is not specified in the title. Or an additional area that has not been legalized.

Also some other small imperfections may need to be fixed to ensure the legality of the sale. This has to be done by the seller as he is the actual owner unless the buyer accepts these "little incidents".

 

If you have a mortgage, at the time of completion you should call the bank and go to the notary to sign the mortgage cancellation and receive the outstanding debt. In these cases, the buyer will write two bank drafts, one to the bank for the money owed and the rest to yourself. The cost of this will be borne by the seller.

 

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Costs and taxes when selling a property?

As a seller, you should expect the following costs:

Broker commission (approx. 5% + taxes)

Energy certificate (up to 500€)

Capital Gains Tax if you sell for more than the original price paid (see below)

Plusvalía tax (see below)

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Capital Gains Tax
Capital gains tax is a tax on the profit you made on the house - the selling price less the price you paid for the house. The costs associated with the sale, such as B. the fees for the property can be deducted before the calculation. There is also an annual allowance that is calculated by the tax office. The capital gains tax rate varies between 19% and 23%, depending on the amount of profit. You may be exempt from paying this tax, but we recommend that you seek financial advice. As explained below, as you are likely to be a non-resident, the buyer will withhold the 3% of the sale and put it on file with the Inland Revenue as a reserve to cover your capital gains and use that 3% to pay some or all of the capital gains tax as they are calculated. The remaining amount must be paid by you and if it is negative, you have the right to request a refund.

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Plusvalía
The Plusvalía is a local council tax calculated based on the taxable value or cadastral value of the property and the number of years since the property was purchased. The seller is responsible for paying the Plusvalía. If you are a non-resident, the buyer will deduct this amount from the sale price, as by law they are responsible for paying if the non-resident seller fails to fulfill their obligation. It is a relatively modest amount of a few hundred euros.

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non-residents and taxes
If you are not officially resident in Spain, the buyer is required to pay 3% of the purchase price to the tax authorities after the purchase is complete. This amount will be offset against the taxes you owe in relation to capital gains tax. You must pay the balance within 30 days of the sale, or you can apply for a refund if necessary. If you have never filed an annual tax return in the years that you have been an owner, the refund is complicated.

 

 

 

Renting a property in Fuerteventura

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After you have bought a property and own a home in Fuerteventura, you may decide to rent out your property. This is actually not a bad idea. Fuerteventura offers 12 months of sunshine and represents an attractive market for tourist visitors.

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However, before you start renting, you should take a few pieces of advice to heart. The government or renters can give you a big headache if you don't follow some regulations.

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Be aware that you must comply with local regulations. It is therefore advisable to seek legal and tax advice before starting a rental activity. Have you thought about drawing up a professional rental agreement? Do you know the local regulations for vacation rentals? Do you know what types of taxes and how much taxes you have to pay?

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Can I rent out my property?
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Yes you can. You can opt for long-term rentals or short-term rentals (holiday homes).

 

Long term rentals are a good idea to generate income from your property and avoid the management associated with a holiday home. Although the income is lower, the security is greater.

 

In any case, there are a few basic tips to keep in mind when renting out your property in this way. And the first is a good contract that protects you and already takes into account everything that might happen.

 

Having a good lawyer by your side will also help you when you are left with no other option but to go to court to resolve disputes with tenants.

Can I rent out my property as a holiday home?
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You might be wondering if you can let your property to vacationers?

The answer is yes, you can!

 

However, you have to observe some legal and tax regulations. Make sure you get the paperwork in order before you start advertising your vacation home. If you advertise your property and allow rental guests to stay in your holiday home without having the required 'Vivienda Vacacional' licence, you could face a hefty fine.

 

Note three basic elements:

 

The location of your property within a complex with other properties. Be aware that your homeowners association may have some restrictions on this activity.

The general use of a complex, e.g. B. for tourism purposes, can affect the idea you are planning.

The physical condition of the house and the items in it.

 

Regulations for renting holiday properties in Fuerteventura

 

Before you start advertising your vacation home, you should obtain a vacation rental license “Licencia Vivienda Vacacional" at the Cabildo of Fuerteventura.

 

Once you have your first rental clients, you should comply with police department regulations and properly register all of your rental guests.

 

Also, don't forget to tell your insurance company about your rental activity, as they may need to change your insurance policy.

 

It's not just about taxes or licenses, other aspects such as complying with safety permits, getting proper insurance and ever-changing tourism regulations also need to be considered.

 

 

What are the tax implications of renting out my holiday home?

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If you are starting a rental business, you should notify the local tax office, Agencia Tributaria Canaria, of the start of this activity. As you are not a Spanish tax resident you will need to file quarterly tax returns and declare the profit from your rental business. The tax rate to be paid is between 19 and 24%.

 

 

Building in Fuerteventura

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We have a lot of experience helping clients to build properties in Fuerteventura.

 

This is a subject that you should pay your full attention to, as this fantastic idea can turn into a nightmare if you don't heed all the warnings that are about to be explained to you here.

 

Building a property in Fuerteventura is just as complicated as it is in your home country. Also, you are now abroad and may not speak the language, so the following list of checkpoints is important to keep your "Spanish Dream" from shattering:

 

Your property must be suitable for construction. If you build on an unauthorized plot of land without a building permit, you risk losing all the money invested, having the house demolished, and a fine on top of that. Not a good idea! Please leave this to the lawyer from my team of experts.

There are different types of land to which different urban planning regulations apply. Your property can be urban or rural and both have different building codes to be aware of.

You should hire an architect to design a project that meets all planning requirements (There are excellent architects on my team of experts. I am happy to put you in touch). You will receive cost estimates and I will set up a meeting with you in advance to gather as much information about you as possible so I can proactively assist you in making the decision 'which architect is best for me'. Be aware that the architect not only designs your home but is also responsible for overseeing the entire construction process. Sympathy for your architect is nice. His competence is more important.

Once the project, called Proyecto Básico (base project), is validated, a building permit must be applied for. And then you have to wait for the local town hall to give its approval. Never start building a house on your own without a building permit, otherwise you can get in big trouble with the authorities and in case of an accident while building a house without a permit, you could be criminally liable. Some preparatory work can be done before the permit is given (e.g. moving plots, some connections to the main utility lines…).

As soon as you have received the building permit, the architect draws up the implementation project, in which all the construction details are described in detail and which the construction company must follow as a guide.

A construction company (also present in my team of experts) must give you an estimate for the construction of the house. You use the execution project as a guide to create an estimate. The better the execution project, the more accurate the construction company's estimate will be. Avoid general estimates that are not precisely defined. All the various items of the construction project should be included.

The architect, Dirección de las Obras, will be in charge of the construction work. This means that the contractor cannot receive partial payments without their consent. In Spain there is another technician: the “Aparejador” or Technical Architect. He also controls the work and reports to the main architect on all incidents. Working with a reliable construction company is important, but the main goal is to have a good architect to oversee the work.

When the construction works are finished and the project is finished, the architect signs the Certificado final de obra, the certificate of final acceptance, confirming the completion of the work.

Your house now exists, but legally you must notify the land registry that you have built a house. You have to sign a deed, “Acta final de Obra”, in front of a notary (also part of my team of experts), pay the taxes and register the property in the land register.

Do not forget that even if the house is finished, you will not be able to use it until you have applied for the first occupancy permit (Licencia primera ocupación) that allows you to live in your house and use it, as well as all the necessary ones to lay connections (job from the lawyer again).

The application for the building permit, the contracts with the construction company, the architect and the other contractors must be strict and 100% protect your rights. Incidents or conflicts can also arise during the construction process, so with a lawyer (at your side from day 1) you can face such things with peace of mind.

Have fun with your house!!!

 

 

The construction matters

 

You cannot build or develop a plot of land without an architect.

 

An architect not only designs your house, but he is also the one who takes care of the building process, so he needs to be able to deal with the builders, other technicians and the rest of the people involved in the construction. He is responsible for the entire construction process.

 

Builders are the main players in the construction process. Especially in this day and age when prices have risen sharply and there is some uncertainty about the supply of materials such as wood, aluminium, etc. Avoid bargains as they can lead to bigger conflicts. A proper contract must be signed to protect your interests. Don't play. We can offer you a good service in this matter.

 

Some legal requirements may differ if you are building the house for yourself or if you are selling it to a third party. The Building Code requires additional insurance and inspections if the house is to be sold within a short period of time and is not intended for personal use.

 

How much does it cost to build a house in Fuerteventura?

 

It depends on the house itself, the quality of the materials, the finish, etc.

 

Asking several construction companies for a detailed offer helps to make price comparisons.

 

The architect might be able to give you some advice.

 

Don't forget that the total cost includes not only the cost of building the home, but also the site development, landscaping, taxes, permits, and more.

 

Always ask for a full estimate. Avoid nasty surprises.

 

Can you build yourself in Fuerteventura?

 

If you're a builder in theory, you can, yes. However, the building process, the materials, the machinery, the cost of labor and so on, require extensive knowledge of building itself; But also specifically about building on Fuerteventura.

 

Is it difficult to get a building permit in Fuerteventura?

 

It is not difficult if you do things the right way with good advice and also enlist the help of a very good architect. But it will still take some time. Despite the efforts of local town halls, allow 6-12 months to obtain planning permission.

 

How long does it take to build a house in Fuerteventura?

 

If it is a single house, 10-14 months after the building permit is granted is an acceptable time frame if there are no major incidents.

 

How to build a house in Fuerteventura without actually being in Fuerteventura?

 

You can rely on your architect to report back to you during the construction phase. You can also hire a project manager who can be your eyes on Fuerteventura. I, Oliver Schlolaut, together with my team of experts, am ready to oversee the construction process and report in your language while you are abroad.

 

My team and I are excellently connected here on the island. This allows us to work very efficiently for you.

 

We have contacts with the most experienced architects and construction companies who offer you a safe and reliable service.

 

And have fantastic professionals ready to help you make your dream home a reality.

 

As real estate agents, lawyers and experts in real estate and construction law, it is in our nature to legally protect you from any infringement.

 

 

 

Do you have further questions about real estate in Fuerteventura?

 

Send us your question and we will contact you as soon as possible!

 

The better we understand what you need, our work will be more effective.