Frequently asked questions

Is it easy for a foreigner to obtain a mortgage?

Yes as long as you can submit basic financial information. The Property Shop Gran Canaria works with all major Spanish banks so we can ensure we get the best mortgage for you. We are not financially tied to any bank or financial institution so our mortgage advice is completely independent.

What if there's still a mortgage on the property?

It's no different to buying a property at home.

If there is a mortgage on the property it can be cancelled on the same day that you sign at the Notary. Before the signing date at the notary, we will inform the holding bank to prepare the cancellation costs, and the amount that the seller still owes.
On the day of the signing a banker's draft will be made out for this outstanding figure including the costs and paid to the bank. This figure will then be deducted from the purchase price when paying the seller. The bank will then register the cancellation of the mortgage.

What does a foreigner need in order to buy a property?

The first thing you need to do is apply for an N.I.E. (Number of Identification for Foreigners). This is simply an ID card anybody with a financial interest in Spain or the Canary Islands is required to have. It is obtained from the local police station and it is a process that we will handle for you. You will also need to set up a non-resident bank account, which again is an extremely simple process that we will handle for you.

Will we have to pay tax when selling a property?

Yes, as a non-resident you'll have to pay 5% of the new declared value as a retention to the Spanish Tax Office, but provided your accounts are in order you should get most of this back within five or six months. You will also have to pay 35% of the capital gains as Income Tax, i.e. 35% of the difference between the price you paid for the property and the price you're selling it for.

I don't speak Spanish, how will I understand what I am signing?

At The Property Shop Gran Canaria we have multilingual experts that will be with you every step of the way. Everything you sign will be clearly translated and explained to you. All our qualified legal and professional experts and advisors have been carefully selected not only for their knowledge and expertise but also for their language skills.