Lanzarote is one of the most unique islands in the Canary archipelago, famous for its volcanic landscapes, year-round sunshine, and a lifestyle that effortlessly blends relaxation with modern comfort. For many, visiting once is never enough. That is why an increasing number of international buyers are choosing to invest in a holiday home in Lanzarote, turning their vacations into a permanent possibility.
Buying property abroad can seem complex at first, but the process in Lanzarote is transparent, well-regulated, and welcoming to foreign buyers. In this guide, we’ll walk you through everything you need to know, from understanding why Lanzarote is such an attractive destination, to learning step by step how to purchase your ideal home and what extra fees to expect along the way.
Why buy a holiday home in Lanzarote?
Lanzarote is more than a holiday island; it is a lifestyle choice. With over 300 days of sunshine a year, it guarantees the kind of weather that makes outdoor living possible in every season. Unlike some tourist destinations that are highly seasonal, Lanzarote remains active and welcoming all year round, thanks to its mild climate and vibrant expat community.
Lanzarote is also unique in terms of culture. Due to the work of César Manrique, who combined architecture and landscape in ways that are now respected around the world, it has a distinct artistic character. The island becomes one of the most alluring places in Europe to purchase a second home when you combine this with a secure environment, first-rate medical facilities, and a well-established real estate market.
The Step-by-Step Process of Buying a Holiday Property in Lanzarote
Buying a property in Lanzarote is relatively straightforward compared to many other European destinations. However, it is important to understand the process in detail, so you know what to expect. Below we outline the essential steps involved in purchasing holiday apartments in Lanzarote or holiday villas in Lanzarote, from your first viewing to registering the title deed.
Step 1: Finding the Right Property
Choosing the kind of property that best fits your goals will be your first choice. Holiday apartments in Lanzarote are a great option if you want an accessible location to stay close to the attractions. They are ideal for brief visits or for people who want to rent to tourists given that they often sit close to beaches, restaurants, and stores.
However, if you value privacy, luxury, and space, Lanzarote vacation villas are the ideal choice. Numerous homes include panoramic backyards, private pools, and breathtaking views of the ocean. Families, groups of friends, or anyone who plans to spend plenty of time on the island comfortably will find them perfect.
When making your decision, consider things like how close to the airport is, how easy it is to get local amenities, and if you would rather be in a bustling town like Puerto del Carmen or a more tranquil place like Yaiza or Haria.
Step 2: Making an Offer
Once you have found the property that matches your vision, the next step is to make an offer. Prices in Lanzarote are usually adjustable, particularly when buying from individual sellers or paying cash. Your agent will walk you through the negotiating process and assist you in understanding the local market value. To make sure the house is clear of debts or legal troubles, it is advisable to request all property papers as soon as possible.
Step 3: Reservation Agreement
The property is usually reserved by signing a reservation agreement and paying a deposit of around 1% of the agreed purchase price, when the offer is approved. While contracts are being made, this agreement takes the property off the market. This phase is especially important for buyers, due to several parties may express interest in the desirable property.
Step 4: The Private Contract (Contrato de Arras)
This contract establishes the purchase terms, such as the price, payment terms, and completion date. A deposit of about 10% of the purchase price is often paid at this stage by the buyer. The Arras contract is legally binding in Spain, meaning that if the buyer withdraws, the deposit is lost, while if the seller withdraws, they must return double the amount paid.
Step 5: Valuation and Property Survey
If you apply for a mortgage, you must have the property valued by a bank-approved surveyor. It’s highly suggested to hire an independent survey, even if you are purchasing outright. This guarantees that the property is free of any encumbrances or concealed structural problems. Additionally, surveys can verify that older properties adhere to municipal planning regulations.
Step 6: The Notary and Signing the Deeds
The buying process is completed in front of a Spanish notary public. At this meeting, the buyer pays the outstanding balance, the keys are given to the buyer, and the title deed (Escritura de Compraventa) is signed by both parties. This step is essential for protecting both parties since the notary confirms that the transaction is legitimate.
Step 7: Registering the Property
Finally, the buyer’s name is added to the property’s Land Registry documentation. This step completes the transaction and establishes you as the legitimate owner. At this moment, your dream of owning a holiday house in Lanzarote becomes true.
Documents Required for Getting a Mortgage in Lanzarote
Many buyers decide to use a Spanish mortgage to fund their property. Mortgages are generally offered to non-residents and can be an effective way to manage your investment, even though payments in cash are still possible.
The most required documents include:
- Valid passport or national ID.
- NIE number (Número de Identificación de Extranjero), which is essential for any property transaction in Spain.
- Proof of income, such as recent payslips or tax returns.
- Bank statements from the past 3 to 6 months.
- Credit history report.
For non-residents, banks will normally finance up to 50–70% of the property value. Having your documentation ready in advance can help accelerate approval and avoid delays, no matter if you are buying a large vacation home or a small apartment in Lanzarote.
Additional Fees and Costs to Expect When Buying in Lanzarote
Beyond the purchase price, buyers should budget for additional costs that typically range between 10% and 20% of the property’s value. These include:
- Property Transfer Tax (ITP): Between 6% and 10%, depending on the purchase price.
- Notary Fees: Around 0.5% of the property price.
- Land Registry Fees: Approximately 0.3% of the property value.
- Legal Fees: Vary depending on the lawyer, but usually between 1% and 1.5% of the purchase price.
- Mortgage Costs: If financing, additional fees include valuation and arrangement fees.
To prevent unanticipated costs, it is essential to account for these expenses. A €450,000 vacation home in Lanzarote, for instance, may incur additional costs of between €45,000 and €90,000. At KPG Property, we are ready to guide you through every step of the process. However, independent attorneys should handle legal matters; we can suggest options and always recommend hiring your own counsel. This guarantees safe and well recorded purchase. Our goal is to help you find your ideal holiday home in Lanzarote with complete peace of mind, ensuring that your investment is transparent, secure, and tailored to your needs
