How we sell a property in the Canary Islands

Almost every owner who sells below what their property was worth made the mistake before the first offer arrived: they set the price without knowing who would buy, went to market with paperwork pending or compared offers by price rather than by what they would actually keep. At CAIC we work to prevent that.

This article explains, step by step, how we sell a property in the Canary Islands. It is the same process we follow when an owner tells us they want to sell a flat in Las Palmas, a let retail unit in Tenerife or a small hotel in the south, and asks the only question that matters: how much can I get, and how?

The method in five steps

Every sale goes through the same five stages. What changes is the depth: a flat does not need the same as a building or a hotel. But the order is never skipped.

1. 01GoalTiming, tax and what you want to achieve
2. 02ValuationMarket value and investor value
3. 03PreparationDocuments ready and issues solved
4. 04BuyerSales pack and the right buyer
5. 05CompletionNegotiate on net, not on price

1. First, the goal: what you need from the sale

Selling to reinvest in another property is not the same as selling to share out an inheritance, exit a company or free up cash by a set date. Each goal changes the right asking price, how long you can wait and which buyer to target.

So the first conversation is about you: when you need to sell, what you will do with the money, your tax position and whether you are resident or not. That sets the yardstick for every offer.

2. Valuation: the buyer sets the price

We always calculate two values. Market value, compared with real transactions in the area —not with portal asking prices—, and investor value, which depends on the net income the property generates or could generate and the yield a buy-to-let buyer requires.

With both we propose a defensible asking price and a minimum price below which selling does not make sense. And we decide something that changes the outcome a lot: whether to sell now, sell after preparing the property, or wait for a better moment, such as the end of a lease.

Case study · illustrative example

A let flat in Las Palmas: two buyers, two prices

The owner receives €1,100 a month and wants to sell. They can sell today, tenanted, to an investor, or wait until the lease ends and sell it vacant to a family who want to live in it.

Tenanted sale to an investor

Annual rent	€13,200
Owner's annual costs	−€3,410
Net rent	€9,790
Yield the investor requires	5% net
Investor's purchase taxes and costs	6.5% transfer tax + €2,500
Price they can pay	≈ €181,500

Vacant sale to an owner-occupier

Vacant market value (comparables)	€225,000
Light refurbishment and preparation	−€6,000
Timing	When the lease ends
Rent keeps coming in until then	Yes
Net to the seller	≈ €219,000

Tenanted sale to an investor€181,500

Vacant sale to an owner-occupier, net of refurbishment€219,000

+€37,500Difference before tax between the two strategies

+20%More net price from choosing the right buyer and timing

5%Net yield the investor requires in this example

Rounded figures for illustration. The investor pays 6.5% transfer tax and about €2,500 in notary and registry fees; the owner's costs include property tax, community fees, insurance, maintenance and void months. Seller's tax is not included and is calculated case by case.

Neither option is wrong: it depends on what the owner needs. If they need cash now, selling tenanted is reasonable, and they will know exactly why the investor will not pay more. If they can wait, the difference justifies planning the sale. What makes no sense is asking a vacant-flat price for a let flat and waiting months without offers, or underselling without knowing there was another option.

3. Preparation: no surprises for the buyer

Before going to market we review the property the way the buyer and their bank will: title deed, land registry, charges, licences, energy certificate, property tax and community fee receipts, planned levies, leases and planning status. Every issue that surfaces late turns into a discount or a deal that falls through.

Where worthwhile, we suggest small improvements. The aim is not to refurbish in order to sell, but to remove the buyer's reasons to negotiate the price down.

4. The right buyer and a pack that convinces them

We prepare a sales pack with what the buyer needs to decide: description, documents, the property's numbers and, if it is an investment, its yield under several scenarios. And we present it to whoever places most value on that asset: families, investors, family offices, companies that need to invest their RIC or international buyers. If you already work with an agent, we coordinate with them.

For whole buildings, hotels or property portfolios the buyer is almost always a professional investor who will carry out their own due diligence. There we prepare an orderly data room and a valuation based on cash flows and occupancy, and consider whether to sell the property or the company that owns it.

5. Negotiation and completion: compare offers by what they leave you

Two offers with the same price can leave you very different amounts depending on payment terms, time to completion, who bears which costs or whether they depend on a mortgage. We assess each offer by the net amount you keep after tax and costs, negotiate the terms and coordinate the deposit, the notary and the tax with your adviser through to completion.

The five mistakes we see most when selling

1. Pricing by what the neighbour is asking instead of by what the real buyer of that property would pay.
2. Going to market with paperwork pending. Issues that appear late are paid for in discounts or deals that fall through.
3. Comparing offers by gross price rather than by what they leave after tax, costs and conditions.
4. Selling tenanted without working out the alternative of waiting for the lease to end and selling vacant.
5. Leaving tax until the notary. Municipal capital gains tax, capital gains or non-resident withholding are planned before signing.

Keep reading: property sales and investment in the Canary Islands · CAIC home page.

This article is for general information and summarises regulations in force at the date of publication. It is not tax or legal advice; each deal is reviewed against the applicable rules and, where appropriate, with lawyers and tax advisers.