When buying the property on Tenerife the buyer pays VAT which is 7% of the property value for residential property and 16% for commercial property and land. The Notary service and state taxes is about 1-2% of total value. NIE (identification number of non-resident) is up to €500. All fees should be paid once the deal is concluded when the purchaser and vendor sign the final purchase contract which is signed and notarized.
According to the Spanish legislation NIE is necessary to all non-residents participating in the process of property purchasing, car purchasing or setting up the company in Spain. Also it is required to pay the taxes. To get the NIE it is necessary to have the international passport (copies of all filled pages are required), active Spanish visa, Custom entry stamp, 2 colorful photos 3*4, appropriate filled in form. Registration deadline is 30 working days.