BUYING AN APARTMENT IN LAS PALMAS
Have you dreamt of living in Las Palmas in Gran Canary? Or have you thought about buying an investment property that you can rent for long or short term use? If you have thought about buying an apartment in Las Palmas, then you’ll find useful information on this page.
NOW IS A GOOD TIME TO BUY AN APARTMENT IN LAS PALMAS!
The prices in apartments in Las Palmas were the highest in the years 2006-2008. Caused by the economic crisis in 2008, the prices started decreasing. By the year 2015 the prices had dropped 40% from the highest peak. After that the prices have started increasing slowly. The prices of the properties will very likely keep going up. There are multiple reasons for this.
WHY WILL THE PROPERTY PRICES GO UP IN GRAN CANARY?
- There are not enough apartments for everyone in Gran Canary. The island has over 800 000 inhabitants. The island is very small and most of the area is either a reserve or otherwise such land that it cannot be built on. There are a lot of people, who need an apartment, but building new ones is very limited.
- The population growth: The Canary Islands are one of Spain’s three large areas, that will have its population growing in the next decade. The national statistics center in Spain estimates that 25 000 people will move to Canary Islands in the next 10 years. So the demand for apartments will rise and along with it the prices.
- Travelling flourishes in Gran Canary. The island is filled the whole year with Scandinavians, CentralEuropeans and Spanish tourists. Many tourists end up buying their own apartment in Las Palmas. Someof them live in an apartment for a part of the year and rent it while they are away.
- High rent income. The prices of rents in Las Palmas have risen significantly over the last two years. The demand is very great and there is a shortage of affordable rental apartments. Many will buy an apartment as an investment.
- Busy harbor. The cargo harbor in Las Palmas is growing when the trade between Europe, Africa and South-America is increasing. Las Palmas is the closest European harbor for most of African countries. Businesses and aid organizations use the Las Palmas harbor more and more for logistics and cargo.
- Great place to live! Las Palmas is a safe and friendly city. The weather is considered one of the best inthe world. Gran Canary has everything in it: gorgeous beaches, mountain views, culture and services. Nowadays Las Palmas has weekly flights directly to Helsinki all year. Statistics of the apartment pricing: https://www.idealista.com/
HOW DOES BUYING AN APARTMENT IN GRAN CANARY DIFFER FROM BUYIN IN FINLAND?
Buying an apartment in Gran Canary follows mostly the same ways as in Finland. The difference is that in Spain all apartments are considered as properties. So when trading apartments, you don’t handle share certificates and the ownership regarding them.
Before making the actual purchase, both parties in the trade will make a private booking contract. The
booking payment, or the deposit, is reduced in the final price.
A bill of sale is also made from the transaction, that is confirmed always with a notary. Transferring the
apartment to its new owner is marked in the real estate register. At the same time the notary fee, registration of title charge and the asset transfer tax (or the VAT) are also paid.
The buyer of the apartment will pay the taxes regarding living to Spain. These are for example the property
tax and either the asset transfer tax (used apartment) or the VAT (new buildings). The size of the taxes is
smaller in Gran Canary than in continental Spain.
WHAT FEES DOES BUYING AN APARTMENT INCLUDE?
When buying an apartment in Gran Canary, you must budget estimated 8-10% of the apartment price for
other costs. These costs can include:
– Asset transfer tax for an used apartment 6,5 % of the apartment price /
Value added tax (VAT) for new properties 5 % of the apartment price
– Notary fee (usually around 500-600 €)
– Registration fees, registration of title (usually around 350-400 €)
– management 300 € (if mortgage)
– Getting or transferring the electric and water contract (about. 350 €)
– Real estate agents fee is usually paid by the seller of the apartment and is included in the price
– Yearly costs of the apartment, including:
– Proeprty tax, which in Las Palmas is 0,67% of the rateable value of the apartment (Valor Catastral). You
can check the rateable value in the city tax office.
– Maintenance fee (Cuota de Comunidad) usually around 20 – 50 € / month. This is used for the hallway
cleaning, lighting and waste disposal
– Income tax of the apartment if not a resident. Practicalyl it is around 200-300 € in a year.
– Electricity and water
– Home insurance
WHAT ELSE DO YOU NEED TO CONSIDER WHEN BUYING AN APARTMENT?
To buy an apartment from Spain, the buyer has to have a NIE number, also knows as a tax
identification number, as well as a bank account in Spain.
Think about where you get the funding. Are you taking a loan from Finland or Spain? Make sure
the loan is granted to you.
The help of a professional is recommended since there are many things to consider. Only use
reliable real estate agents (or lawyers with knowledge of the real estate laws).
The same apartment can be sold by many real estate agents. This is perfectly normal in Spain
since real estate agents usually work together. They also split the brokerage, which is usually 5%
of the purchase price. If you find the same apartment at different prices at different real estate
agents you might suspect that they are trying to take too much brokerage. In these cases, it is
recommendable to check the real price from the seller of the apartment. The brokerage should not
be more than 5%.
The real estate agent helps check that the condition of the apartment is the same as what the
seller promises and that the price is reasonable.
The real estate agent acquires an extract from the Property Registry. It holds all the information
about possible encumbrances, if the seller is the legal owner and the tax value of the property.
The buyer usually doesn’t save money by not using a real estate agent. The brokerage of the real
estate agent is always paid by the seller of the apartment. If the seller does not want to use a real
estate agent, they get keep the money they saved.
DO YOU WANT TO BUY AN APARTMENT IN LAS PALMAS?
What kind of apartment are you looking for? Are you planning to live in Las Palmas full time? Or
are you going to live part of the year on the Canary Islands and part of the year in Finland? Are you
buying an investment apartment? I will help you find a suitable apartment in Las Palmas.
Working for Remax I have a large cooperation network in Las Palmas and elsewhere on Gran
Canaria. This way it is easier to find a suitable apartment. You can see some of the vendible
apartments on the webpage. There are also houses and apartments with no advertisement
anywhere. Through me you can get knowledge about those as well.
When you find an interesting apartment, I will join you to the showing.
I will check if the property has encumbrances. For example, if taxes and other fees have been
paid. If the seller has debt tied to the apartment, they are taken into account in the selling price.
I will also negotiate with the seller about the price and help with the offer making if needed.
I will arrange the reservation agreement between you and the seller.
I will accompany you to the notary when the contract of sale is verified.
I will interpret the contract of sale orally.
I will help with the procedures regarding payments and the apartment registration.
I will help with the name change to the electricity and water companies, the housing cooperative
and the tax office.
I will help with acquiring the NIE-number and opening a bank account if needed.
If needed, I also help with other business relating to the apartment, like home insurance, phone
and internet provider etc.
If you want to rent your apartment for a part of the year, I will find suitable tenants.
Are you interested? Contact me and tell me what kind of apartment you are looking for!