Tenerife is one of the most popular tourist destinations in the world. The island is famous for its beautiful beaches, mild climate and picturesque nature. In recent years, investing in land in Tenerife has become increasingly popular. This is due to a number of factors, including the growth of tourist flows, infrastructure development and a favorable investment climate.
If you are planning to invest in land in Tenerife, it is important to be aware of the legislation governing this market. In this article we will look at the main aspects of land legislation in Tenerife that are important for investors.
Purchase rules
The purchase of land in Tenerife is regulated by Law 39/2015, of October 29, on the regulation of the real estate market. According to this law, foreign citizens can freely buy land in Tenerife, without any restrictions.
To purchase a plot of land in Tenerife, you must submit the following documents:
- Passport or other identification document
- Foreign passport if you are a citizen of another country
- Document confirming solvency (for example, income certificate, bank account statement)
- A document confirming the absence of debts on taxes and fees
When purchasing, you must consider the following requirements:
The land plot must be free of encumbrances (for example, mortgages, leases)
The land plot must be suitable for its intended purpose (for example, if you are planning to build a house, the land plot must be intended for construction)
The land plot must be located in the zone permitted for construction
Restrictions on the use of land in Tenerife
The following restrictions may be imposed on the use of land in Tenerife:
- Restrictions on building heights
- Restrictions on building density
- Restrictions on the use of certain types of materials
- These restrictions may be set by local authorities. Before purchasing a plot of land, you must familiarize yourself with the current restrictions.
When purchasing land you must pay the following taxes:
- Real Estate Transfer Tax (ITP)
- Capital gains tax (IRPF)
- Real estate transfer tax (ITP) is 6.5% of the value of the land. Capital gains tax (IRPF) is payable on the sale of land. The tax rate depends on the period of ownership of the land plot.
Purchasing process
To purchase a plot of land in Tenerife for a foreigner, you must contact a real estate agency or a lawyer specializing in real estate issues in Tenerife.
A real estate agency will help you find a suitable plot of land and prepare all the necessary documents. A lawyer will advise you on legal issues and help you avoid mistakes when making a purchase.
Conclusion
Investing in land in Tenerife can be a profitable investment. However, before purchasing a plot of land, it is necessary to carefully study the legislation and requirements for land plots. This will help you avoid problems in the future.
Additional recommendations for investors
- Location of the land plot
- Purpose of the land plot
- Cost of land
- Availability of infrastructure
- Prospects for the development of the area
It is also recommended to consult with an expert in real estate investment in Tenerife. An expert will help you choose a suitable plot of land and assess the risks of investments.
