Fuerteventura property guide 2024

What you need to know in 2024 before buying, constructing, selling, or renting out a property in Fuerteventura?

The Lajares Law Offices Guide to buy, build, sell, or rent a property in Fuerteventura.

We are using Lajares Law Office’s experiences to update the initial guide for buying, selling, constructing, or renting a property in Fuerteventura.

Our goal is to guarantee our clients’ peace of mind when they buy, sell, construct, or decide to rent out a property. We want to participate and bring more legal certainty to the real estate market in Fuerteventura. Because when more and more people agree on following the legal system, Fuerteventura will become the best place to be.

Our experience taught us how to analyse and to explain each specific property related situation to our clients. We will guide you, step by step, through the different stages of buying, selling, renting, or constructing a property in Fuerteventura.

Feel free to give us your thoughts and ideas, we are happy to share and to learn from your experiences.

WE LAW FUERTEVENTURA AND WE LAW YOU.

Summary

• What are the real estate trends for 2024?
  
• Buy a property in Fuerteventura
• Build a property in Fuerteventura
• Sell a property in Fuerteventura
• Rent a property in Fuerteventura
• Other question?

Buying a property

What to know before buying a property in Fuerteventura?

People coming to Fuerteventura may dream about purchasing a property. This is an exciting story and the reasons why they decide to do it are very different. Some are focused on the investment side of the deal, others in having a second home for vacation, but all of them feel attached or in love with the island thanks to the sun, the light, the beaches, the proximity, the peace, the space.

Some of our clients planned their purchase project for a long time and at a certain point they have decided to go for it. Others decided to purchase after spending a first holiday on the island, and they want to move forward fast.

Unfortunately, we have all heard stories about people who had a Spanish dream, but it all went wrong, maybe some of these people even ended up losing money or even having their homes demolished because they were declared illegal or unsafe.

Our advice is to the same thing as you were in your country, be careful and check, ask, re-check and keep asking until you have all your questions answered and you feel fully comfortable to start realising your purchase project.

Which are the specificities for buying a piece of land in Fuerteventura?

One of the most interesting real estate products are the plots of land, to build one’s dream home. Over the last few years many clients have been looking for the perfect piece of land, and our goal is to inform and to guide them step by step so that they can realise their dream.

At LAJARES LAW OFFICES we are experts in Urban Planning Law as well is in Property Law so we can melt both knowledges to guarantee you a safe and secure purchase process.

It is important to be aware that the urban planning regulations are much more complicated than the property aspects itself. Make sure to consult an expert and avoid absurd comments as “I know the guy from the Town Hall” and so…. Stay away from these comments, and realise your purchase based on legal elements and facts.

An essential document when purchasing a piece of land is the urbanistic certificate, or the so-called “Calificación Urbanística”. This document to be obtained with the local Town hall indicates the building capability, as well as other urban planning requirements and regulations affecting the specific piece of land which you intend to purchase.

Another important element is that the plot you intend to purchase has its georeferenced measurements. Georeferencing is the process of assigning exact locations to geographical objects within a geographic frame of reference. The registration of the georeferenced graphic description of your property with the Land Registry Office consists of the possibility of registering the perimeter delimitation of your property, or in colloquial terms to register the map of your property tied to a known Earth coordinate system. We refer you to our website to read more on this topic: PROTECT YOUR PROPERTY! THE BENEFIT OF GEO-REFERENCING. – Lajares Law Offices

Which is the general process for buying a property in Fuerteventura?

From the very first moment, you must take control of the situation. And this means, to choose a good team of experienced professionals to guide you through the whole process.

Make sure to start this process with a detailed budget in your hands.

Investing in a property cannot be a question of luck. Prior to signing a private purchase agreement, you should execute due diligence on the property which you intend to purchase.

Once the private purchase agreement has been signed and the deposit has been paid, your lawyer will start preparing the signing of the public deed of purchase and sale.

Overall we could say that the process to buy a property in Fuerteventura is quite similar to buying properties in other European countries, although a difference might be that in Fuerteventura the role of the notary is slightly different as for example the payments related to the purchase will be most of the time be made directly to the selling party, and not to the bank account of the notary as which is the case in several other European countries.

Be aware that signing the purchase deed in front of a local notary is not the last step of the purchase project, the property transfer taxes or stamp duty taxes should be paid, and the purchase deed should be inscribed with the Registry office (“Registro de la propiedad”).

Which are the Pitfalls for buying property in Fuerteventura?

LAJARES LAW OFFICES believes in LAW as the only valid guide. We have heard a lot of absurd comments as “we know a friend who, not being a professional, may help us” “it hasn’t an official permission, but it is ok you know, it is Spain” “ it doesn’t have to be registered, it is legal under a private contract” “ you can start building the house before the building licence is granted” “you do not need a lawyer for doing this…” “after the sale we will check if the expected use is suitable”.

Well, investing in a property cannot be as gambling. To assure the result and to receive the valid answers we must ask the proper questions and to receive the right advice.

Which budget do I have to consider for completing the purchase of a property in Fuerteventura?

As mentioned above, make sure to ask your lawyer for a detailed budget at the beginning of the purchase process. Before you make a formal decision to purchase a property, it is important to have a clear understanding of all related expenses to finalise the purchase and the inscription of the property.

Your lawyer should offer you a package of legal, administrative, and fiscal services, which should include full assistance on the purchase project. These legal, administrative, and fiscal fees represent more or less 1% of the purchase value, with a minimum fee per transaction.

On the purchase value of the property, you will need to pay Property Transfer Taxes of 6,5% of the purchase value when you purchase a second-hand property, or the Stamp Duty Taxes of 1% of the purchase value when you purchase a newly built property directly from the constructor/promoter.

As a buyer you should also cover the notary fees and the Land Registry fees.

Consider a range of 8-10% on top of the purchase price to cover all fees and taxes.

When you purchase with a Spanish mortgage some extra costs must be considered, in this case we advise you to calculate 11-13% on top of the purchase price as an indication for the full budget.

Is it worth buying a property in Fuerteventura?

When someone decides to buy, to invest or to live in Fuerteventura, we are often influenced by passionate, intuitive decisions, in which the heart overrules the head. The island of Fuerteventura and especially the north of the island, offers many elements to be passionate about; endless beaches, the best climate in the world, an international atmosphere without losing the Canarian essence, security, connectivity etc…as we explained in our blog 10+1 Reasons to buy Real Estate in Fuerteventura – Lajares Law Offices

Is buying a property in Fuerteventura a good investment?

As it is mentioned in the previous question, yes, the equation is working these days. But not only in terms of pricing. There is also a big difference that we cannot forget. When investing in a property, be aware that we have a twelve-month market for visitors as the winter in Canary Islands is the highest season. You may rent your property during the period you do not want to use it, and this provides income helping to make the decision to buy a property. Well, we are not responsible for this as this is not made by us, it is the climate, the location, the sea, the mild weather, that helps us to obtain returns much higher than the rest of Spain where the season provides only 4-5 months of income. Thanks to the Sun!! We Law the Sun!

What is the best location for buying a property in Fuerteventura?

We love (Law) the whole island, but we can’t hide that our hart goes out to the north as we describe in our blog Welcome to the North of Fuerteventura. We love this Place! – Lajares Law Offices.

No matter what your expectations are, you will find your right place on the island. Visit the island, feel the environment, see the people and we are sure that you will obtain a place to be.

The North side of the island offers plenty of activities in a relaxing ambiance, with nautical sports, modern lifestyle, and a vibrant social local and expat life.

The Central area provides a relaxing way of life, with golf courses, calmed beaches.
The South invites you to enjoy the fantastic natural scenes and endless beaches.

Is the process for a buying property in Fuerteventura different when I am a non-European Citizen?

It is correct that non-European citizens will not always be granted with the same rights as European citizens when it comes to purchasing a property in Fuerteventura. Although with the right legal assistance, this shouldn’t be any limitation at all.

The property conveyancing process is the same for whether you are an EU or non-EU citizen, including costs and taxes related to the purchase process are identical.

An important element when you are purchasing a property in Fuerteventura as a non-European citizen is to evaluate at the beginning of the purchase process if a so called “Military Permit” is required. Yes, when you purchase a property which is indicated as so called “Rural Land”, you do need a military authorization prior to the signing of the public deed of purchase and sale. The delay for obtaining this military permit depends on the surface of the land and can take up to 3-6 months. It is important that your lawyer evaluates this element before you formally agree on a time schedule with the selling party for completing the purchase transaction.

Read more about this subject in our blog Did you know you may need a military permit to buy a home in Spain? – Lajares Law Offices

Which are the main elements you should check before buying a property in Fuerteventura?

Make sure to consult and expert who will verify the legal, administrative and fiscal situation of the property prior to signing any contracts or paying any deposit fees.

Among other things, the following elements should be verified:

• Who owns the property, and therefore who has the right to sell it? In case that the property is owned by a company who is the company director who has the legal right to sell the property, and make sure that this company does not have a revoked fiscal registration number.
• Are there any debts against the property, for example a pending mortgage or maybe even a court claim?
• Are there tenants or occupants in the property?
• Is the property is subject to any special rules such as subsidised housing, planning restrictions, allowed uses of the property…?
• Is the property correctly inscribed with registry office?
• Are there any discrepancies between the inscribed surface at the cadastre and the registry office?

An extended Due Diligence where your lawyer carefully checks the content of the different property titles, the information provided by the Tax and Land Registry Office, and any other relevant data bases is a must!

BUILDING A PROPERTY

What do I need to know before building a property in Fuerteventura?

Building a property in Fuerteventura is as complicated as in your home country, but you are now abroad and might not speak the language, so the following list of checkpoints are important to protect your Spanish dream.

Is my land suitable for building?

When you intend to purchase a plot, this is the very first check to be done. If you start constructing on a non-regulated plot, without a valid building permission, you risk losing all the funds invested, the house to be demolished and on top of this you will receive a fine. Play it safe!

There are different types of land that are affected by different urban planning regulations. Your plot can be urban land or rustic land, and they have a different building regulation which must be considered.

How to choose the architect?

You should hire an architect who will draw a project, “Proyecto Básico”, fulfilling all the planning requirements. In Fuerteventura you can find fantastic architects, well experienced and able to communicate in your language. Ask for some budgets and try to set up a meeting with them to have as much information as possible about them and decide for the one you feel better. Ask friends with similar experiences. Be aware that the architect does not only design your house, but he is also responsible for supervising the whole building process, so having a good relationship with your architects is a must.

An architect does not only design your house, but he is also the one that will take care of the building process, so he must be able to deal with the builders, other technicians and the rest of the people acting in a building.

At which point do I apply for the building permit?

Once the so-called Basic Project has been validated you must apply for a building licence “licencia de obra y construcción” and wait until the local Town Hall grants you the licence. Do not start building a house without a valid building permit, as in case of doing so, you may have a lot of problems with the authorities and in case of an accident while building a house without licence, your responsibility may reach the level of a criminal offence. Some preparatory works may be authorised before the licence is granted (e.g., movement of land, some connections to the main supplies…)

What is an execution project?

Once you obtain the building licence, the architect will prepare the Execution Project. This execution project which covers all the construction details in a more accurate manner, and it will be the guide that the construction company must follow.

How to prepare the budget of the construction works?

The building company must quote you the costs of building the house. Make sure to contact several companies and to ask for several quotations. The building company will use the Execution Project as the guide to prepare the budget. The better the Execution Project is, the more accurate the quotation from the building company will be. Avoid general, not well-defined quotations. All different items of the building project should be included.

Should I contact my lawyer before starting the construction works?

In general, the application of the building licence, the contracts to be signed with the building company, the architect and the rest of the people contracted must be rigorous and defend your rights, so do not forget to take legal advice before any step is taken.

Also, during the building process some incidents or conflicts may arise, so having an expert legal opinion close to you will grant you a peace of mind.

Make sure to sign a proper contract with the construction company you choose to work with. Ask you lawyer for advice.

Who will direct the construction works?

The direction of the building works will be assumed by your architect, “Director de la obra”, which means that without his consent, the builder will not be entitled to receive the partial payments.
In Spain, another technical supervisor is in place, the “Aparejador” or the Technical Architect will also check the works and will report all incidents to the main Architect. Working with a reliable building company is important, but your main goal is to have a good architect supervising the work.

Which documents are required when the construction works are finalised?

Once the building works are finished and the finalised works do accomplish the Project, the architect will sign the “Certificado final de obra”, the Final Work Certificate confirming the complete execution of the works.

Do not forget that even if the house is finished you cannot use it until you apply for the first occupation certificate, “Licencia primera ocupación” with the local town hall. This certificate allows you to live and to use your house, as well to connect the utilities.

Do I need to sign another notarial deed when the construction works are finalised?

Once the construction works are finalised, it is essential to declare your house in the terms of law. You should sign a public deed of finalised construction “Obra Nueva Terminada” in front of a notary in Fuerteventura.

Several documents are required for signing this notarial deed. You can ask your lawyer to prepare all paperwork for you.

Once this notarial title deed has been signed, you must present it to the Tax Office, pay some taxes related to the value of the building, and submit this notarial deed together with the prove of the tax payments to the Land Registry Office for the registration of the house.

Now your home exists in terms of a general legal knowledge. You are officially owner of a piece of land with a fully legal construction on it. Congratulations!

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

Well, it depends on the house itself, the quality of the materials, the surface, … As told before, ask several building companies for a detailed quotation. The architect, who will be your closest friend during the building process, may give you some guidance. Do not forget that the total cost is not only the cost for constructing the house, but the urbanization works must also be considered, landscaping the garden, the taxes, the licence, …

Ask for a complete budget to avoid surprises.

Is it possible to self-build in Fuerteventura?

If you are a builder in theory, you could, yes. Although, the building process, the materials, the machinery, the labour costs and so on require an extended knowledge about the building itself, but also specifically about building in Fuerteventura.

Is it hard to get a building permit in Fuerteventura?

It is not hard if you do things properly and you get the help of a good architect, but it will take some time. Despite the efforts being made by the local Town Halls, consider between 6-12 months to obtain a building permit.

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

If it is a single house, after the licence is granted, 10-14 months will be an acceptable period if there are no big incidents.

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

You may rely on your architect to be the one reporting to you while the building is in process. Also, you may hire a project manager who can be your eyes in Fuerteventura.

At LAJARES LAW OFFICES we are ready to assume the supervision of the building process and to report in your language while you are abroad. We have contacts with the most experienced architects and building companies providing a safe and reliable service, having fantastic professionals who may help you during the building process of your dream home. Being lawyers and being experts in property law and construction law it is in our nature to defend you legally from any legal violation.

SELLING A PROPERTY

What must I know before selling my property in Fuerteventura?

It is sad to know that you are leaving the island, unless you are selling your property to buy another one! Anyway, if it is the time to sell, and you have your personal reasons to go for it, here you will find some tips for doing so.

You can sell your property by yourself, or you can sell it through a real estate agent.

When selling a property, be aware that the ball is on the buyer’s side, and he must execute the different checks to assure the good end of the purchase.

Although the seller has several obligations as well, you should provide all necessary information on the property, the receipts of tax payments, the contracts of the utilities, to assure that you have a valid title.
Once the buyer has conducted the necessary due diligence checks, a deposit or a private contract will be signed, where the payment of the deposit (typically 5%-10% of the agreed sale price) assures each party of the other’s commitment to the deal and specifies a date for the final purchase.

If the buyer pulls out, they lose their deposit. If you as the seller renege on the commitment, you might find yourself obliged to pay you would be buyer twice the amount of the deposit by way of compensation.
The closing of the transaction will be at the notary office, when the full price is paid, and you transfer the ownership of the property to the buyer.

What is the correct way for selling my property in Fuerteventura?

Once the property is offered on the market, you may expect offers trying to reduce the price or presenting you different ways of payment. If your idea is to have a fast sale, a cash buyer will be the most desirable option. Sometimes buyers may need financing, and this may delay the sale in some months.

Once you accept an offer, you will close the main elements of the agreement in a private document, and in general you have the obligation to assure that the property is free of any charges, mortgages, taxes, and other encumbrances affecting your title.

We have seen a lot of titles having some defects which need to be solved before selling, as for example the differences between the surface shown at the title and the surface given by the land registry and this must be fixed priorly to the signing of the public deed of purchase and sale. Sometimes the property is sold with a pool, but the pool doesn’t appear in the property title, or some extra surface has been built, but has not been legalized and so does not appear in the property title.

Also, some other small defects may need to be solved to assure the legality of the sale transaction. This is something to be done by the seller as he is the actual owner, unless those small incidents are explicitly accepted by the buyer in the private purchase agreement.

When the property has a pending mortgage, at the time of completion, your lawyer should organise that the bank director is present at the Notary in order to sign the cancellation of the mortgage and to receive the outstanding debt of it. In these cases, the buyer will issue two bank drafts, one for the bank for the owed money and the rest for yourself.

Which costs and taxes do I need to consider when selling my property?

As the seller, you can expect to have to pay:

• Real estate agency commission (typically between 3-5%)
• An energy performance certificate (between €150-€500)
• Capital gains tax if you are selling for more than you the price you originally paid (see below)
• Municipal Capital Gain Taxes (see below)

What are Capital Gains Taxes?

Capital gains tax (CGT) is effectively a tax on the profit you’ve made on the house – the sale price minus whatever you paid for it. The costs involved in selling it such as the estate agent’s fees can be deducted before the calculation is made. There’s also an annual allowance which is calculated by the tax office. The CGT rate varies between 19% and 23% depending on the size of the gain. You may be exempt from paying CGT, but we recommend you seek financial advice. As you probably are a non-resident, as it is explained below, the buyer will retain the 3% of the sale and placed at the Tax Authorities as a provision of funds to cover your capital gain and, once it has been calculated, use this 3 % to pay part or the total amount of the CGT. The remaining amount will have to be paid by you and if negative, you are entitled to apply for a refund.

What is Plusvalía or Municipal Capital Gain Taxes?

Plusvalía is a local municipal tax calculated on the rateable or ‘cadastral’ value of the land and the number of years since you bought it. The seller is liable for paying the plusvalía. If you are a non-resident, the buyer will deduct this amount from the selling price as by Law, the buyer will be responsible to pay it if the non-resident seller does not fulfil his obligation. which is a relatively modest amount of a few hundred euros.

Are the tax obligations different for non-residents?

Yes, if you’re not an official resident of Spain, the buyer is obliged to forward 3% of the purchase price to the tax authorities on completion of the sale. This amount of 3% retention will be offset against any taxes you end up owing in respect of capital gains tax. You need to pay any balance within 30 days of the sale, or you can apply for a refund where appropriate. If you have never declared the yearly tax form during the years that you have been the owner, it will be complicated to be refunded.

RENTING OUT A PROPERTY

What do I need to know before renting out my property in Fuerteventura?

After buying a property in Fuerteventura you might decide to rent out your property. Not a bad idea at all. Fuerteventura offers 12 month of sunshine and a market desiring to come and visit us.

Before you start, some advice will need to be in place to assure you a pleasant journey while renting your property. The Government or the tenants may create big headaches if you do not comply with some regulations.

Be aware that you should comply with the local regulations, so proper legal and fiscal before starting any rental activity advice is recommended. Did you think about preparing a professional rental lease? Are you aware of the local holiday rental regulations? Do you know which kind of taxes and how much taxes you should pay?

Can I rent out my property?

Yes, you can. You may choose the long-term rental or the short-term rental (vacation homes).

Long term rentals are a good idea to have your property generating incomes and avoiding all the management involved in a holiday home. Yes, the incomes are lower, but the security is bigger.

Anyway, this way of leasing your property requires you to fulfil some basic tips and the first one is to have a good contract that covers you, where all the potential incidences are considered.

Having a good lawyer close to you will also help you in case of not having any option rather than going to the Court for a resolution of conflicts with the tenants.

Will a new Holiday Rental Law come into force in June 2024?

Regarding the real estate market, the main issue for 2024 will be the potential and currently unknown cuts in holiday housing, announced by the Government of the Canary Islands, with a new holiday rental law expected to enter into force in June 2024.

These expected changes force us to be vigilant, as they might affect already acquired investments rights, very successful development models in different areas of the island, which could perhaps be harmed if this future legal intervention won’t be based on real arguments, but on mere political posturing.

What are the actual regulations on Holiday Rental Properties in Fuerteventura?

Before starting to advertise your holiday home you should apply for a holiday rental license, “Licencia Vivienda Vacacional”, with Cabildo de Fuerteventura. Once you receive your first rental clients you should comply with the regulations of the police department and register all your rental guests correctly. Also, do not forget to inform your insurance company about your rental activity, they might have to change your insurance policy. It is not only a question of taxes or licences, other aspects such as compliance of security permissions, a proper insurance in place and the permanently changing touristic rules must be considered.

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

When you start a rental business you should notify the local tax office, Agencia Tributaria Canaria, of the start of this activity. Being a non-fiscal resident in Spain you should submit quarterly tax returns and declare the benefit of your rental business. The tax rate to be paid is between 19 – 24%

Do you have more question about property in Fuerteventura?

Send us your question and we will contact you as soon as possible!
The better we understand what you need, the more effective our work will be.

Mobile: +34 679 177 042
Phone: +34 928861542
Email: info@lajareslawoffices.com
Website: www.lajareslawoffices.com