5 Steps Before Buying in Tenerife
What EU residents should do before purchasing their holiday home in Tenerife
If you live in Estonia, Poland, Germany, Sweden, Finland or another EU country, buying a property in Spain can be an exciting opportunity, but it is worth preparing properly before you start viewing properties or making offers.
This guide is designed specifically for EU residents who are considering buying a second home or holiday property in Tenerife.
Your personal circumstances will still matter, particularly when it comes to financing, taxation and documentation, but there are several important things you can think about before starting your property search.
STEP 1 — DECIDE HOW YOU WILL ACTUALLY USE THE PROPERTY
Ask yourself:
How many weeks or months per year will we spend in Tenerife?
Will we mainly use the property during the winter?
Will we come for shorter holidays throughout the year?
Will we stay for several weeks at a time?
Will our children or grandchildren regularly stay with us?
Do we need two or three bedrooms?
Do we want outdoor space?
Do we want to be close to restaurants and shops?
Are we comfortable having a car?
Do we want somewhere quiet or somewhere with more activity?
Would we eventually like to spend longer periods of the year in Tenerife?
What happens to the property when you are not there?
This is another important question to answer before you buy.
Some buyers want a completely private holiday home that is used only by themselves and their family.
Others would like to use the property themselves for part of the year and rent it out while they are back home.
If you are considering renting the property when you are away, think about this before choosing the property. Don't simply assume that you can buy any property and rent it out later in whatever way you wish.
Your intended use, the property itself and the applicable rules should all be considered before making a purchase.
STEP 2 — COME TO TENERIFE AND GET TO KNOW THE ISLAND
Where on Tenerife should you buy?
Tenerife is not one uniform island.
The south, north, west and metropolitan areas all offer very different climates, landscapes, lifestyles and surroundings.
Come to Tenerife before you buy.
Our recommendation: take a Tenerife24 island tour
If you are still getting to know Tenerife, an island tour is a good way to see more of the island before you start narrowing down your property search.
Tenerife24 offers excursions in several languages and covers different parts of Tenerife and the Canary Islands.
Explore Tenerife before choosing where to buy:
Think about:
Do I prefer the warmer and sunnier south?
Would I enjoy the greener north?
Do I want to be close to the ocean?
How important are restaurants and services?
Do I need easy access to the airport?
Would I prefer a lively area or somewhere quieter?
Will I need a car?
Do I want to be close to other families or an international community?
STEP 3 — WORK OUT YOUR REAL BUDGET
1. How much cash do you have available?
2. What is your maximum property price?
3. What additional costs will you have?
You should also think about the ongoing costs of owning a second home:
Community fees
Property-related taxes
Insurance
Utilities
Maintenance
Repairs
Property management, if required
Furnishing and improvements
4. Will you need financing?
If you plan to use a mortgage, investigate your options before you start seriously viewing properties.
As someone who lives outside Spain, your financing situation may be different from that of someone who is already resident in Spain.
It is important to understand that the amount a bank may lend can depend on whether you are buying as a resident or as a non-resident, as well as whether the property will be your main home or a second home.
As a general indication, Spanish banks may finance up to around 80% for a main residence, while financing for a second home is commonly lower — around 60–70%. For non-resident buyers, the maximum can also be more restrictive, with some banks offering around 60–70% financing, depending on the buyer, property and bank.
This means that if you are an EU resident living outside Spain and buying a €300,000 second home in Tenerife, you should not automatically assume that you can borrow €240,000.
For example:
70% mortgage: €210,000 financed → €90,000 own funds
60% mortgage: €180,000 financed → €120,000 own funds
And this is before adding the purchase costs and taxes.
STEP 4 — PREPARE YOUR DOCUMENTS BEFORE YOU TRAVEL
If you live outside Spain, you can start preparing much of your documentation before you arrive in Tenerife.
Depending on your individual circumstances, you may need documents such as:
Valid passport or identification
Proof of address
Proof of income
Bank statements
Tax or income documentation
Information about existing loans
Mortgage documentation
Other financial documentation requested during the purchase process
What about the NIE?
The NIE (Número de Identidad de Extranjero) is the Spanish foreigner identification number and is commonly required for property-related and other economic activities in Spain.
It is worth looking into this early rather than leaving it until you are already in the middle of the buying process.
The practical process for preparing documentation can differ depending on your country of residence.
For example, an Estonian resident may deal with documents differently from a buyer living in Poland, Germany or another EU country.
Don't assume that every EU buyer will have exactly the same paperwork requirements.
If you are unsure what you should prepare before travelling, this is one of the areas where professional advice can save you time.
Fill this form and apply for real estate consultation: HERE!
STEP 5 — TALK TO A PROFESSIONAL BEFORE YOU START MAKING SERIOUS DECISIONS
This is the most important step.
Before you start making offers or booking dozens of property viewings, it can be extremely useful to speak with someone who understands the Tenerife property market and the practical realities of buying a home in Spain while living elsewhere in the EU.
You don't need to know everything before speaking to a professional.
In fact, that's exactly why the conversation can be useful.
Speak with Tenerife24
The Tenerife24 property consultation with Eike Feigenbaum, owner, CEO and real-estate professional at Tenerife24, is designed around the individual buyer's circumstances, experience and goals. The consultation can also be carried out remotely, so you can start preparing while still at home.
During the consultation, you can discuss topics such as:
What you should prepare before starting the purchase
Which documents you may need
The costs and taxes associated with buying property in Tenerife
Which areas may suit you and your family
Which type of property may suit your intended use
The role of the estate agent
When you should involve a lawyer
What happens after signing before the notary
Potential risks and common mistakes
What you need to consider if you want to rent the property while you are away
How to look after your property when you are back home
When it makes sense to start viewing properties
The consultation is personalised rather than being a generic information session. Tenerife24 also provides written material covering relevant purchase costs and documentation, and the consultation can be conducted online.