Whether you’re selling your villa in Costa Adeje, gifting an apartment in Santa Cruz, or inheriting a home in Puerto de la Cruz — foreign property owners in Tenerife must navigate Spain’s complex tax rules and legal formalities.
At Borderless Lawyers, we represent you remotely for any of these transactions — from start to finish — ensuring full legal compliance and tax efficiency.
🏠 Selling Property in Tenerife as a Foreigner
You can legally sell a property in Tenerife even if you are abroad, with the help of a Power of Attorney (POA).
🔹 Key Taxes When Selling
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Capital Gains Tax:
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19% (EU/EEA residents)
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24% (non-EU residents)
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Based on net profit (after deducting purchase costs and improvements)
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Plusvalía Municipal:
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Local tax on increased land value
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Based on years owned and cadastral value
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3% Retention (Retención IRNR):
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Buyer must retain 3% of the sale price
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You can claim a refund if you owe less capital gains tax
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✅ We handle the full refund process and tax filing on your behalf.
📜 Inheriting Property in Tenerife as a Foreigner
When inheriting property in Tenerife, heirs must declare the inheritance and pay taxes before registering ownership.
🪪 Inheritance Tax (ISD):
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Paid by the beneficiary
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Balearic and Canary Islands apply regional deductions
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Reduced rates for spouses, children, and residents
Required Steps:
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Obtain and translate death certificate
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Prove relationship (birth/marriage certificates)
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Declare inheritance (Modelo 650)
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Sign deed of acceptance
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Register the property
✅ We manage the entire inheritance process remotely via POA.
🎁 Gifting Property in Tenerife
Gifting property (donación) while alive also triggers gift tax, similar to inheritance tax.
Rules for Gift Tax:
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Rates depend on recipient’s relationship and residence
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Paid by the recipient
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Must be declared via Modelo 651
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Must be signed in front of a Spanish notary
💡 Gifting to children or spouses may qualify for reductions.
📄 Documents Typically Required
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NIE (for all parties)
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Property title (escritura)
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Cadastral certificate
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Tax certificates (IBI, community, utilities)
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Power of Attorney (if you’re abroad)
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Proof of relationship (inheritance/gift)
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Spanish bank account for payments/refunds
💼 What We Do
At Borderless Lawyers, we:
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Represent you in selling, gifting, or inheriting property
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Calculate and file all taxes
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Manage 3% retention refunds
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Draft and sign documents with notary
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Complete registration and Cadastre updates
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Translate key documents into English
💬 Final Word
Tenerife offers long-term value — but foreign owners must handle exits, gifts, and inheritance with care. Without legal guidance, you risk penalties, tax audits, or blocked transactions.
📞 Contact Borderless Lawyers now for secure legal support when selling, gifting, or inheriting property in Tenerife.