Purchasing Procedures
Usually a 10% deposit is requested on a resale property and 10 to 25% when buying directly from the builder on a new property.
Contracts are immediately drawn up and the document will include the completion date and forms of payment.

Frequently Asked Questions
  
What is a sales agreement?
A private document signed between the buyer and seller. It must reflect true ownership, legal definition of the property the exact form of payment (Bankers draft, cash...) currency of the transaction (Euros, Pounds, Dollars etc.) a fixed rate, completion dates and penalty clauses. In general terms, if the seller withdraws, he is liable to pay double the amount of the deposit previously paid.
 
And if there is a mortgage on the property?
Before the signing date at the notary, your agent will instruct the Bank in question to prepare the cancellation costs, the remaining amount and any interest due pertaining to the seller. On the day of the signing you will be asked to prepare a banker's draft for the amount due payable to the bank, which will cover the mortgage etc, the remainder going to the seller. It is then the banks responsibility to register the cancellation of the mortgage.
 
Is it easy for a non-Resident to obtain a mortgage?
Yes. Provided basic financial information can be submitted to the Bank, obtaining a mortgage in the Canary Islands is usually easier than in most European countries. The maximum amount the bank will grant you is 60% of the valuation of the desired property. Builders will often offer a pre-arranged mortgage if you purchase a property still in the construction phase.
 
What must a non-Resident do in order to purchase in the Canary Islands?
An N.I.E (Number of Identification for Foreigners) is required, in the Canary Islands, which is a fiscal number or something similar to your ID. A non-Resident bank account must also be opened. Again most agents will handle all these administrative procedure for you.

Currency
As with mainland Spain the currency of the Canary Islands is the Euro.
 
Mortgages
Mortgages with a number of Spain’s major banking organisations.
Mortgages are available for both residents and non-residents of the Canary Islands. In the case of a resident up to 80% of valuation may be granted by a bank. In the case of a Non-resident up to 60% may be granted. We should point out that banks here do not use the same criteria for valuation as do other countries therefore, the valuation figure will not necessarily be a reflection of the actual purchase price. The bank will expect you to provide proof of both personal income and monthly expenses. This allows them to check that future repayments can be made. Proof is usually submitted in the form of tax returns or business accounts spanning the last 3 years up until today.
 
If you wish to use a mortgage as collateral in order to purchase a business, please remember that a bank will not loan any figure against a Leasehold purchase. However, on a Freehold purchase normally up to 50% of the bank valuation of the building can be loaned.
 
Should you choose to follow this last alternative, your Spanish property will be held as security against the loan, and a charge will be registered in the Property Registry.