Home buyer's guide

1. Estate agent: Responsible for mediating the property transaction between buyer and seller. They market, arrange showings, negotiate prices and help prepare the contract.

2. Settlement Office/Lawyer: Is responsible for controlling all legal and practical aspects of the purchase. They check the property's legal status, make sure all taxes and duties are paid, assist with everything practical before, during and after the sale.

3. Notary Public: Is a public unaided body consisting of lawyers with special training. The role is to confirm the identity of the parties, ensure that the contract is legally valid and register the purchase in the property register.

4. Property Registry: Records all property information, including ownership and liens.
5. Appraiser: Normally used by banks in connection with mortgages to verify the property's value. Rate is lower than market value and is therefore not used in property sales.

6. Bank: Is responsible for providing financing to the buyer, if necessary and for making the payment to the seller.

It is important to note that the purchase process may vary depending on the brokerage. Here is an example of the process that we practice:
 

1. Contact buying broker - Use one broker (free) that you trust

2. Current housing - Filter out current housing

3. Viewing - Arrange private viewings with broker

4. Settlement overview - Get a specified overview with total sum

5. Bidding - Consult with broker

6. Purchase agreement and reservation - Make the trade binding

7. Spanish tax number (NIE) - Start the process

8. Money Transfer - Transfer the balance in good time

9. Inspection - Inspect the property before taking over

10. Takeover - Sign at the notary public and receive the keys

11. Change of ownership - Change water, electricity, insurance and possibly ownership in the condominium

12. Costs - Pay taxes and costs

13. The deed - Receive the registered deed from the property register

We offer a Norwegian authorized broker with Spanish certification and a complete purchase package. This enables a safe and easy home purchase on Gran Canaria, if desired from Norway.

To save time and avoid frustration, we recommend that you work with a larger estate agency that can provide a skilled and experienced local buyer's agent who speaks your language and can show you properties in line with your wishes and budget.

Buying agents use their expertise and knowledge of the market to identify suitable properties and present them to you. This can save you time and energy by avoiding overlapping viewings and repeated reviews of the same information with different agents.

A knowledgeable buyer's agent can provide you with valuable guidance in the buying process and help prevent potential challenges. The assistance is highly beneficial as the seller's agent shares the commission with the buyer's agent, ensuring you have access to expertise and professional support at no extra cost. For a stress-free and positive buying experience, we can't recommend enough the many benefits of using a single buyer's agent.   

Viewings in Gran Canaria can be quite different and properties are often not prepared for viewing. This means that they may not be thoroughly cleaned, styled or organised, which can give a different impression to what you might expect.

Instead of fixed viewing days, private viewings that are customised to the individual buyer's schedule are more common. This provides a more personalised and tailored experience, but also requires more planning.

Following a few key steps in the property search process can not only save you time, but also ensure you don't miss out on great opportunities and help you find your dream home faster and at the best price. 

If you're not familiar with the area, a knowledgeable estate agent can take you on a free neighbourhood tour. This gives you the opportunity to quickly familiarise yourself with the neighbourhood, local amenities, transport links, and other relevant aspects of life in the area. Neighbourhood tours can be invaluable when it comes to making an informed decision about your home purchase.

If you have found an interesting property advert, our estate agents can help you buy the property. It is important to avoid direct contact via the property advert, as the cooperation with local estate agents does not apply if you are already registered, without incurring additional costs

Buy safely via RE/MAX: Not all estate agents practice exclusive agency agreements, which means that we can approach the seller directly and you can buy the property through us. Contact us first to get the best possible assistance for a safe and positive property transaction.

Professional buying service: If the buyer and seller agree on all conditions, we offer a complete purchase package, which ensures an impartial execution of all practical and legal tasks and gives you peace of mind throughout the transaction, especially if you are in another country.

Buying property with plans to extend or alter your home (obra mayor) may seem like an attractive option, especially if you're looking for a project to create your dream home.

Seriously. However, it's important to realise that there are strict building and alteration regulations in Gran Canaria and that failure to comply can have serious financial and legal consequences.

Trivialisation. When considering such changes, some property agents may be enthusiastic and reassure you that it will be fine, or point out that others are doing it.

Consequences. Without the necessary documentation or authorisations from the relevant authorities, embarking on construction or alterations can be a risky and potentially costly nightmare. Breaches of the Building Act can have significant consequences:

- The property can be blocked for up to two years

- Requirement to reinstate the property

- You may be subject to heavy fines

It is important to know that the municipality also requires a licence for ordinary renovations (obra menor). Contact an experienced property agent or consult a technical architect to avoid unforeseen problems.

Buying property in Gran Canaria for rental purposes may seem attractive, but it is important to understand that there are restrictions on private rentals in hotel and residential complexes on tourist-regulated plots, if there are professional rental operators operating in the complex. 

If you are planning to buy a property with the intention of renting it out, it is therefore important to investigate the plot zoning and any rental activity that may limit your private rental options.

If you are going to rent out your property for less than 9 months to tourists, it is important that you apply for a holiday home licence. Without this VV licence, it is illegal to rent out your property privately on a short-term basis. Estate agents can inform you about how to go about obtaining a holiday rental licence.

If the estate agent has inspected the property before advertising, there is a copy of the simplified deed, also known as a "nota simple", which contains important information about

Plot regulations. Which shows what the property can be used for and any restrictions.
Plot area. Which is the total area of the property, including both buildings and undeveloped areas.

Built area. Which indicates the total size of all buildings on the property.

If in doubt, ask your estate agent to send you a copy of the deed. This way you can be sure that the property's characteristics and any additions or changes are legally registered.

In an unfamiliar market, you may encounter positive realtors who speak your language, but be aware of scare tactics - this is a red flag. Some agents use unethical methods to secure property sales. These strategies often involve telling horror stories about other brokerages.

Others may use more vague comments intended to cast doubt on other estate agents. Asking simple control questions can help you quickly determine if the broker is sincere. Ask the broker to confirm and ask how you can verify the claims. Often the answer is "everyone knows this" or "I've heard it from someone".

Some estate agents also cast shadows over other properties without any real basis in the hope of profiting from their own property sales.

This harms agents and home sellers, but also home buyers if they are tempted to walk away from a potentially good property purchase.

If a real estate agent speaks disparagingly about another property, neighbourhood, condominium, resident or other, you should verify the claims with other real estate agents before turning down potential properties. That way, you won't miss out on a good deal based on incorrect information from estate agents.

Unfortunately, these uncultured behaviours are particularly prevalent among Scandinavian-speaking estate agents. Agents who are affiliated with large, reputable estate agency chains are bound by a code of conduct and do not normally use such tactics. Choose agents who focus on providing accurate, clear and honest information and have a desire to help you.

In Gran Canaria, there are estate agent associations that claim to offer security and ethical standards for their members. Many members do not have relevant training and some operate in a grey area with unbalanced deals, avoid transparent property trading and practice 'black money'. This can result in heavy fines and prison sentences for those involved.  Brokers who flaunt their membership of the Canary Islands Real Estate Association are therefore not a guarantee of safety. You should therefore be sceptical and do your research.

Brokerage houses that are members of the Canary Islands Association of Estate Agents (ACEGI) use a common platform where their properties are displayed on members' websites. This gives the impression that they have a large and varied portfolio, when in fact there are many brokerages that distribute the properties among themselves.

RE/MAX is an international property agency chain with a significant presence in Europe. In Gran Canaria we have 10 offices and RE/MAX UTLAND (ABROAD) in Patalavaca is the island's specialised brokerage office for international clients interested in buying or selling property in Gran Canaria. Our strong brand gives many people an extra level of security when travelling abroad.

After 15 years of local experience, we joined the RE/MAX chain in 2017. In 2018, we already had the top broker in Spain among 2200 RE/MAX brokers from our office, and in 2019 our offices became number 3 out of 163 offices.

In 2022, our brokers were again honoured with both first and second place among 2,200 RE/MAX brokers. This is a testament to our dedication and expertise in delivering the preferred brokerage service in Gran Canaria. 

RE/MAX has been awarded the Consumer Award Spain in 2019, 2020, 2021, 2022 and 2023. This prestigious award confirms RE/MAX's commitment to customer satisfaction and their ability to deliver first-class property services in Spain.

Using an experienced, trained agent who speaks your language when buying property abroad provides you with clear communication and guidance throughout the buying process. This makes the process safe, time-saving and efficient.

Valuations, properties and agreements are controlled by our Norwegian general manager, Sara Nymo. The only estate agent in Gran Canaria with a licence from the Financial Supervisory Authority of Norway and Spanish certification. This ensures that you are in competent hands across national borders.

By listening to our customers' feedback, we have succeeded in our goal of becoming Gran Canaria's friendliest estate agents with an average of 4.9 out of 5 stars in customer reviews since 2019.

RE/MAX UTLAND has a history of no legal complaints or claims on property purchases. We are proud of this track record in the property industry and it is a testament to our commitment to delivering outstanding service and ensuring a safe and positive experience for our customers.

In Gran Canaria, it is common for properties not to be properly prepared for viewing. Personal belongings are often present, the property may be untidy and cleaning may be inadequate.

Minor maintenance may also be omitted before the sale and can negatively affect the viewing experience. Don't let this cause good buying opportunities to slip away while waiting for sellers to give you a more positive experience.

However, we recommend that you try to look past this and use your imagination to see the potential in your property. Maybe you've already found the property of your dreams that just needs a little care.

Our estate agents are obliged to document who has attended a viewing and therefore require you to sign a simple viewing confirmation before the viewing. The viewing confirmation guarantees a free viewing with no obligation to buy and the freedom to use other estate agents.

Furthermore, upon presentation of our viewing agreement, the seller is prevented from increasing the sales price for 14 days after the viewing date. This gives you predictability and can help you save money.

The seller has a duty to provide correct and complete information about the property, including any faults, defects or other significant matters that the buyer should be aware of. 

On the other hand, the buyer has a duty to investigate, which means that they must thoroughly familiarise themselves with the condition of the property, documentation and other relevant matters.

The buyer should carry out the necessary investigations and inspections of the property to uncover any defects or deficiencies.

Our legally tested purchase agreements ensure that the property is sold without significant defects and deficiencies that have not been disclosed in advance. This gives you as a buyer increased consumer rights and a simpler process should the need for complaints arise.

Prospectus
After the property viewing, ask the estate agent for a complete prospectus containing a number of standard information: asking price, year of construction, energy labelling, property number, address, form of ownership, property tax, plot regulation, areas and any unregistered areas. Look for any discrepancies between the prospectus and what you saw in the property.Note whether the furniture and fixtures and fittings match the brochure. Ask the estate agent any questions you may have.

Attractive properties sell quickly and there is a good chance that others are looking for the same property as you.Have a conversation with the estate agent to find out if there are other people interested in the property in question.

If there is little demand, you can work out a strategy with the estate agent to adjust your bid.

Due to major cultural differences in bidding, misunderstandings can easily arise, e.g. an offer that is too low can lead to the seller either not wanting to sell the property to you, or in the worst case scenario, withdrawing the property from the market. In such situations, it is very valuable to have a realtor who can act as a liaison and navigate between different cultures. The estate agent can give you good advice on how best to proceed.

Some estate agents require a deposit of up to €500 before buyers can make an offer, which is paid into the agent's account and refunded if the seller does not accept the offer. If you change your mind you will lose the amount. We do not require a deposit to be able to place bids, and you can easily make non-binding bids via our website.

As bids and acceptances are non-binding, potential buyers are usually not invited to bidding rounds. Instead, the "first come, first served" principle is followed.

However, avoid placing bids on several properties at the same time, as this may be perceived as frivolous and create false expectations for the seller.

In the event of bidding rounds, we recommend that you request access to the bidding journal, not accept that it is kept confidential. This ensures transparency and that you don't pay more than you need to.

In Gran Canaria, various types of contracts are used that are not drawn up by lawyers and may be legally invalid. Often the contracts contain clauses that favour the seller.

This can result in a lengthy legal process in Spain, where you could potentially lose significant amounts of money. At RE/MAX UTLAND, we use a legally tested purchase contract (ARRAS) that protects both parties.

In addition, we also ensure that the purchase contract is drafted both in Spanish and in your own language. This ensures that you fully understand all the details, terms and conditions of the contract.

We also ensure that no one has access to your money, which is safely held in an independently secured client account, with the government-controlled body Notary Public.

The purchase agreement should provide a clear and complete description of the transaction. This includes the identity of the parties involved, the address of the property and the property number from the public property register.

There should also be detailed information about plot zoning and the size of the property, based on data from the registered deed. Other important details to include are information about the estate agent's commission and the planned date of takeover.

Be sure to carefully review all details of the agreement and seek legal advice if necessary to ensure that all aspects are covered and understood.

It is important to be aware that there are different practices for handling client funds, and several brokers operate with the term "client account" without offering sufficient security and guarantees.

You should therefore never pay directly to a broker, regardless of the amount. To protect yourself, you should use a brokerage house that practises impartial insured client accounts, for example at the Notary Public. These public offices offer an extra degree of security and independence, which can help give you peace of mind.

If you're considering renting out your property to tourists on a short-term basis, it's important to ensure you have a holiday home licence (VV) and understand the requirements before you apply.

The legislation allows you to start renting out immediately after you have applied for the licence. Once your application has been processed, you will receive a rental sign with your licence number.

It is important to note that lettings lasting less than 9 months are considered short-term lettings. Violation of the Holiday Let Act can result in significant fines.

Rental income from property in Gran Canaria is subject to taxation. The tax rate for non-residents from the EU, EEA and Switzerland is 19% of net income (income minus expenses).

For non-residents from outside these areas, the tax rate is 24% of gross income (it is not possible to deduct expenses). Rates can vary from year to year so make sure to stay up to date.

From 2016, the Canary Islands have adopted a general reduction of 99.9% in inheritance tax for direct descendants (children, parents), spouses and registered partners.

This means that in practice, these groups pay a minimal tax. However, it is worth noting that this reduction only applies to tax residents of the Canary Islands.

For non-resident heirs, the tax may be higher. Tax laws are subject to change and it is always best to seek advice from a tax expert.

Having a Spanish will can make the inheritance process significantly easier and quicker and help ensure that your wishes are followed.

In 2012, our Norwegian general managers took a pioneering initiative in collaboration with Notarius Publicus to introduce the use of unauthorised and insured client accounts in Gran Canaria

This was an important change in industry practice that had existed for generations. After some challenges and resistance, the first collaboration was realised in 2013, which laid the foundation for the use of client accounts with different notaries, ensuring that no one has access to the buyer's money. Since then, several estate agents have followed suit and adopted this solution, which has helped to create safer property transactions for home buyers.

Ethics
The RE/MAX chain in Spain is a pioneer in promoting ethical behaviour in the real estate industry. RE/MAX UTLAND is subject to a strict code of ethics for our estate agents, which you can download here.

Once you've found your dream property, your estate agent should provide you with a detailed financial overview that includes exact costs down to the last euro. In the meantime, you should take into account approximately 10% in taxes and costs. The seller pays the estate agent's commission unless otherwise agreed.

It is important to be aware of the property tax (IBI = Impuesto sobre Bienes Inmuebles) when buying a property in Gran Canaria, as it will form part of your annual expenses as a property owner. You can contact your estate agent to get accurate information on the exact property tax for the property in question.

In Gran Canaria, it is common for properties not to be prepared for viewing in the way you are used to from home. Personal belongings are often present, the property may be untidy and cleaning may be inadequate. 

Less affordable upgrades may also be left out before the sale. This can negatively impact your viewing experience. This means that you may miss out on great property purchases while waiting for the right viewing experience.

However, we recommend that you try to look past this and use your imagination to see the potential in your property. Maybe you've found the property of your dreams that just needs a little more care.
 

Our estate agents are obliged to document who has attended a viewing and therefore require a viewing confirmation to be signed before the viewing. The viewing agreement guarantees a free viewing with no obligation to buy and the freedom to use other estate agents.

The seller has a duty to provide correct and complete information about the property, including any faults, defects or other significant matters that the buyer should be aware of. 

On the other hand, the buyer has a duty to investigate, which means that they must thoroughly familiarise themselves with the condition of the property, documentation and other relevant matters.

The buyer should carry out the necessary investigations and inspections of the property to uncover any defects or deficiencies.

Our legally tested purchase agreements ensure that the property is sold without significant defects and deficiencies that have not been disclosed in advance. This gives you as a buyer increased consumer rights and a simpler process should the need for complaints arise.

After viewing the property, ask the estate agent for a complete prospectus that includes at least: asking price, year of construction, energy labelling, property number, address, form of ownership, property tax, plot zoning, areas and any unregistered areas. 

Look for any discrepancies between the stated areas and what you saw in the property. Note whether the furniture and fittings correspond with the prospectus. Ask the estate agent any questions you may have.

Attractive properties move quickly and the chances of others looking for the same property as you are are high. Have a conversation with the estate agent to find out if there are other people interested in the property.

If demand is not high, you can work out a strategy with the estate agent to adjust your offer.

Due to cultural differences in bidding, misunderstandings can easily arise, for example, a bid that is too low may result in the seller either not wanting to sell the property to you or, in the worst case, withdrawing the property from the market.

In such situations, it is very valuable to have a realtor who can act as a liaison and navigate between different cultures. The estate agent can give you good advice on how best to proceed.

As bids and acceptances are non-binding, potential buyers are usually not invited to bidding rounds. Instead, the "first come, first served" principle is followed. 

However, avoid placing bids on multiple properties at the same time, as this may be perceived as frivolous and may put the estate agent in an uncomfortable situation with sellers.

In the event of bidding rounds, we recommend that you insist on seeing the bidding journal and do not accept that it is kept confidential. This ensures transparency and that you don't pay more than you need to.

Fixed fixtures and equipment such as air conditioning are included in the sale unless otherwise agreed. Check the prospectus to find out whether the property is being sold furnished or unfurnished, and which items may or may not be included. Usually, electronic devices such as TVs, or personal belongings such as pictures, cutlery, bed linen, etc. are not included in the property sale.

If you don't speak Spanish, it can be challenging to complete important tasks, including fulfilling your tax obligations. Government offices rarely offer services in other languages, so you may need to hire an interpreter.

In addition, the process of obtaining a Spanish tax number - which is required prior to a property purchase, contracting for water, electricity, insurance, and other necessary changes related to ownership - can be both time-consuming and confusing if you have no previous experience with it.

That's why we recommend that you, like 9 out of 10 foreign home buyers, choose our stress-free, complete buying assistance to ensure a positive experience. 

When buying property in the Canary Islands, you must pay 6.5% in sales tax (ITP). This payment should be made to the tax authorities in the Canary Islands, usually within 30 days from the date of purchase.

It is the buyer's responsibility to ensure that this tax is paid on time, over and above the purchase price, to avoid fines. Professional brokerage houses can help you calculate the amount.

Foreign property owners in Gran Canaria are required to submit an annual Spanish tax return, regardless of the tax return in their own country. This applies even if the property is not rented out, as the tax is calculated based on the estimated income from the property.

When renting out, the rental income is reported and taxed, it does not necessarily mean that you will pay more tax in total. It just means that part of the tax will be paid in Spain, while the rest will be paid in your home country. It is important to consult a tax advisor to ensure correct fulfilment of all tax obligations.

It is important to realise that second-hand properties are generally sold "as is" in Gran Canaria. This means that any faults and defects will not necessarily be considered a legal defect. A defect must fulfil the following criteria:

Serious: The defect must be so significant that you would either not have bought the property, or would have paid a lower price, had you been aware of it prior to purchase.

Hidden: The defect could not have been detected by a visual inspection of the property before purchase.

Existing: You must be able to prove that the defect was present before the purchase contract was signed.

Take a look at our simple guide that will help you navigate through any complaints.