Buying Property in Lanzarote: Protect Your Investment
More than a decade helping foreign buyers in Lanzarote, we know exactly what can go wrong and how to prevent it. Whether you are buying or selling a property in Lanzarote, you’ll learn how to avoid costly mistakes with complete confidence.
Renowned Law Firm with Expert REAL ESTATE Solicitors
Buying or selling property in Lanzarote? One legal mistake could cost you thousands or your entire investment.
Lawyer and Director of SUMMUM Lawyers Lanzarote.
Law degree and Master's degree in Strategic Human Resources Management.
With outstanding experience in Labour and Real Estate law and in Consulting, Hospitality and Banking projects.
Contenidos
First of all: Do you really need a solicitor to buy a property in Lanzarote?
The short answer is yes. The long answer is also yes, but us explain why.
The other day a German client rang us. He’d paid €15,000 deposit on a flat near Puerto del Carmen. Everything seemed perfect until we discovered the property had an unpaid mortgage of €40,000 that the seller had “forgotten to mention”. If he’d come to us before signing anything, we’d have saved him that problem.
We see this type of situation constantly. The contracts here, the deposits, the legal checks… everything works differently to what you might be used to. And without proper protection, you can lose your money or, worse still, end up with a property that brings you problems.
At SUMMUM Lanzarote Lawyers we’ve spent years specialising in exactly this: protecting foreign buyers at every step of the process.
Why Lanzarote and Canary Islands remain an excellent investment
Lanzarote has real advantages that we’ve seen work time and again with our clients:
➡️ The climate works. Our British clients tell us it’s one of the few places where they can be sure of having sunshine when they come on holiday. And that, for holiday lettings, translates into constant occupancy.
➡️ The regulations for foreigners are favourable. Unlike other countries, here there are no special restrictions for buyers from outside Spain. If you have your NIE (which we manage for you), you can buy without complications.
➡️ It’s a safe investment within Spain. The Canaries have historically shown greater stability in the property market than the mainland.
➡️ The numbers work. With over 3 million tourists per year, demand for holiday rentals remains strong. We have clients who’ve achieved yields of 6-8% annually on a sustained basis.
How estate agents really work here
This is something that surprises many foreigners: in Lanzarote, agencies rarely have exclusivity over a property. You’ll see the same flat advertised by three or four different estate agents, normally at the same price.
Is it confusing? At first it can be. But we explain it to our clients like this: it’s an advantage. You can compare the service of different agents and choose who you feel most comfortable working with.
That said, not all agents are equal. We’ve worked with some excellent ones who know the market well and are transparent. And we’ve also seen others… well, let’s say some need us to review very closely what they propose.
Always ask for these documents before committing to anything:
- Cadastral reference
- Simple note from the Land Registry
- Information about community charges
- Energy certificate
These documents allow us to verify that everything is in order from the beginning.
And please, always negotiate the price. In our experience, there’s room for manoeuvre in practically all transactions. But make sure the important conditions (deadlines, deposit, special clauses) are in writing.
The real cost when buying a property in Lanzarote
One of the questions we’re asked most is about financing. If you’re thinking of getting a mortgage in Spain, there’s something important you should know: Spanish banks base their loan on the official valuation, not on the price you agree to pay.
Let us give you a real example: you have a property that costs €150,000, but the bank values it at €130,000. The bank will lend you 80% of €130,000 (€104,000), not of €150,000. That difference of €46,000 comes out of your pocket.
Regarding total costs:
Our experience tells us you should count on 10-12% additional on top of the purchase price. This includes:
- Transfer Tax (ITP): 6.5% for second-hand properties in Lanzarote
- VAT + Stamp Duty: For new builds
- Notary, registry and legal fees
A tip that can save you thousands:
Don't use the bank for international transfers. We work with foreign exchange specialists who get much better exchange rates than traditional banks. On a €200,000 purchase, this can save you £2,000-3,000.
Annual taxes: what you need to know from the start
Once you’re a property owner, you have annual tax obligations, even if you don’t live in Spain:
- IBI (municipal tax): Similar to council tax
- Non-resident income tax: Yes, even if you don’t let the property
- Income tax on rental income: If you decide to let
At SUMMUM we don’t just help you with the purchase. We also manage these annual tax obligations for our clients, because we know that from London or Frankfurt it can be complicated to keep up with everything.
The process of buying a property step by step:
How we work
They'll normally ask for between €3,000 and €6,000 to take the property off the market. Here it's crucial that the contract specifies that this deposit is conditional on our favourable legal report. We've seen cases where the client has paid the deposit without conditions and then we've discovered serious problems. In those cases, recovering the money is much more complicated.
This is the moment where things get serious. With the earnest money contract: If you pull out, you lose the deposit If the seller pulls out, they must pay you double back That's why we insist so much on only reaching this stage when we're 100% sure that everything is legally correct.
This is where we really earn our fees. We review property titles, charges, community debts, planning compliance... Everything that can become a future problem.
The signing is done before a Spanish notary. Notaries here are public officials who verify that everything is correct. Sometimes we recommend sworn translation so our clients understand perfectly what they're signing.
After signing:
We register the property in your name (this is when you’re legally the owner)
We change the utilities and community charges
The complete process usually takes 2-3 months, but you can move in immediately
Important legal aspects for foreigners
NIE: your key to everything
Without NIE you can’t buy, pay taxes or register property in Spain. We take care of getting it for you quickly and efficiently.
Succession planning
This is something many foreigners don’t consider until it’s too late. Spanish succession law can be very different to that of your country. Sometimes, Spanish rules can prevail over your foreign will.
We have cases where we’ve helped British families restructure the ownership of their houses in Lanzarote to ensure it passes to whom they want, not to whom Spanish law dictates.
Holiday rental licences: the landscape in 2025
If you’re thinking of letting your property to tourists, 2025 has brought important changes:
VV Licences: harder to get
- From April 2025 you need approval from 60% of the complex’s owners
- The government can suspend new licences for five years
- From July 2025, compulsory national registration (NRUA number)
- Stricter sustainability and age requirements
If you let without a licence, the fines are very high. And from 2025, controls are more frequent.
Practical advice from our experience
Under-declaring is illegal and fines can reach 150% of unpaid tax. It's not worth the risk.
Never trust only the seller's solicitor or the estate agent. You need someone who defends only your interests.
In our experience, misunderstandings always come from verbal agreements that each party then remembers differently.
It's our job to ensure you're protected at every step.
Frequently Asked Questions when Buying a Property in Lanzarote
Can foreigners buy properties in Lanzarote?
Yes, without special problems. You just need the NIE and follow the Spanish legal process.
Do I need to live in Spain to buy?
No, but you will have annual tax obligations even if you live abroad.
How much do you pay in purchase taxes?
Normally 10-12% of the purchase price, including ITP, notary, registry and legal fees.
What if the seller pulls out after I pay the deposit?
If you’ve signed an earnest money contract and they breach it, they must return double to you by law.
Can I let my property on Airbnb?
Yes, but you need a valid and registered VV licence. The rules have tightened considerably in 2025.
How long does the whole process take?
From reservation until you have the keys and everything registered, normally 2-3 months.
Real State Lawyers in Lanzarote
Team of expert lawyers specialising in urban planning and property management matters in Lanzarote or the Canary Islands.
Playa Blanca, Lanzarote
C. las Maretas, 4, 35580 Playa Blanca, Las Palmas