Getting Started

Can I buy property in Lanzarote? Yes. You don’t have to be resident here to own a property or business on the island. But, as a non-resident you are only eligible for a mortgage of up to 70% of the property as valued by the lending bank. Bear in mind that the bank evaluation can sometimes be lower (or higher) than the actual asking price.

 

Location, location, location

Whereabouts on the island do you want to buy? This is obviously a decision subject to personal preference and on how the property is going to be utilized.

Resort based property is, for example, the most reliable bet should you be planning to let to tourists. Rural tourism is growing but the vast majority of visitors are still here primarily for year round sunshine and the beach.

 

Budgeting

Always allow an extra 10% on top of the purchase price to cover all of the additional costs, which normally include

  • Stamp Duty — 6% (5.5% on new builds)
  • Registry Fee
  • Notary Fee
  • Plus Valia Tax

If embarking on a property rental program think through the additional costs carefully. These can include property management fees, community fees, utilities bills and a sometimes high rate of wear and tear.

Bear in mind that any earnings are also subject to Spanish income tax — usually at the rate of 25% for non-residents.

Non-residents are subject to capital gains tax of 35% on the net profit accrued from the sale of property on Lanzarote UNLESS they have owned the property for more than ten years prior to December 1997.

 

Private Sales?

Tempted by the Se Vende (For Sale) sign painted onto that crumbling old finca? Private sales obviously are possible BUT unless you speak fluent Spanish and have some knowledge of the applicable laws, procedures and protocols you are strongly advised to stick with a reputable estate agent.

Should you choose to proceed with a private sale, ensure that you secure the services of an experienced locally based property lawyer.

Agents fees (usually around 5%) are included in the sale price and are paid by the vendor.

 

Finding An Agent

There are around 150 Estate Agents operating on Lanzarote. Most are used to dealing with English speaking clients. A reputable local agent will be able to steer you through the entire process.

A good place to start your search is in our Estate Agents Directory.

 

Opening A Bank Account

The simplest way to complete your property purchase is to transfer your domestic funds to a local bank on Lanzarote.

It is simple to open a non-resident bank account here. Assistance with opening this account is usually provided by your estate agent.

Where to Next?

Why not check our guide to Getting a Mortgage.