Chapter

Buying a house in the Canary Islands

§ 1The islands

The Canary Islands lie in the Atlantic off north-west Africa. Tenerife and Gran Canaria are the largest and most visited, Lanzarote and Fuerteventura are flatter, drier and more volcanic, and the smaller western islands are greener. This chapter belongs to the section on a closer look at where to buy. It gives only figures we could verify and ranks no resort.

§ 2What the registry shows

The property registrars report that foreigners made up 29.33% of home purchases in the Canary Islands in the second quarter of 2026, with 32.25% in the province of Santa Cruz de Tenerife and 26.55% in the province of Las Palmas. The average price was €3,052 per m² in the region, and the statistics institute reports an annual price rise of 11.0%.

§ 3Canarian taxes

The Ministry of Finance table updated in September 2026 gives the general resale transfer tax in the Canary Islands as 6.5%. The islands also have their own indirect tax in place of VAT on new homes, and we did not verify its rate, so the costs section lists it as a point to confirm. Check the rate on the date of your deed.

§ 4Tourist use

A 2025 regional law requires prior enabling by urban planning for tourist use of a residential building, and a registration number in the tourist registry. The section on renting and investing explains the layers. Municipalities and communities add their own limits, and we did not read them.

§ 5Volcanic and coastal risk

Some islands have a volcanic history, and coastal land can be exposed to storms and erosion. Ask the island authority about risk zones and the insurer about cover. We did not read the civil protection plans. The coastal law protects a strip inland from the shore, as the legal section explains.

§ 6Water and energy

Water often comes from desalination, and prices vary. Check the water supply, the cost and the energy certificate. The location checks section explains.

§ 7Licences and title

A lawyer should verify the licence, the registry note and the cadastral record before any deposit. The legal process section explains the checks.

§ 8The four main islands

Tenerife covers Tenerife and Gran Canaria covers Gran Canaria.

Lanzarote covers Lanzarote and Fuerteventura covers Fuerteventura.

§ 9Who it may suit

It may suit buyers who want a mild climate all year, direct flights from Europe and an international market, and who accept the distance from the mainland.

§ 10How to compare

Compare the same type of home across places and ask for registry data. The method chapter best places for owners explains how we use official data. What affordable places means covers budget.

The section on coast, village or city covers setting. Inland Spain is in the main points of inland Spain.

§ 11The mainland coasts

Costa del Sol for owners covers the Costa del Sol. Andalusia in Spain covers Andalusia.

Costa Blanca for foreign buyers covers the Costa Blanca.

The section on Costa Cálida covers the Costa Cálida and the section on Valencian Community the Valencian Community.

§ 12The rest of Spain

What Catalonia means covers Catalonia. Buying a home in Balearic Islands covers the Balearic Islands.

Madrid step by step covers Madrid. Northern Spain step by step covers northern Spain.

§ 13What we could not verify

We did not verify the Canarian indirect tax rate, the civil protection plans or any municipal rules, and we found no island averages.

§ 14Questions to put to the seller

Ask the seller or agent for the registry note, the cadastral reference, the latest property tax receipt, the energy certificate and the community certificate of debts. Ask about volcanic and coastal risk, the water supply and the licence of the building. Put the questions in writing and keep the answers. A seller who cannot produce a basic document before a deposit is telling you something about the sale. The legal process section explains each document and who can supply it.

§ 15Costs beyond the price

Budget for the transfer tax, or VAT and stamp duty on a new home, then the notary, the registry, a lawyer and any bank or valuation costs. After the purchase come the annual property tax, community charges, insurance, utilities and maintenance. Shipping, desalinated water and insurance can raise the yearly cost. The costs section explains each item without giving a single total, because the total depends on the price, the region and the type of home.

§ 16Visiting in more than one season

Visit in more than one season and on both sides of the island, because the north and the south differ in weather. Go on a weekday and at a weekend, in the morning and at night, and talk to neighbours and local shopkeepers. A viewing arranged by an agent shows the best hour of the best day, so return unannounced if you can. Take photographs of the street, the access and the neighbouring buildings, and compare them with the plans.

§ 17Working with advisers

A lawyer who works for you, and not for the developer or the agent, should check the title, the licences and the charges. A surveyor can check the structure, and a tax adviser can explain your position as a resident or a non-resident. Choose a lawyer who knows island rules and the regional indirect tax on new homes. Ask each adviser for a written fee before they start, and keep the fee separate from any commission paid by a seller.

§ 18Deposits and timing

Reservation fees and deposits are common in Spain. Ask what each payment buys, whether it is refundable and under which conditions, and who holds the money. Check the transfer tax rate on the date of your deed, because the regional rules can change. Do not pay a large sum before the checks above are complete, and do not let an agent hurry you with a story of rival buyers. The legal process section explains the private contract, the deposit and the deed.

§ 19If you plan to let the home

Rental income is never certain, and the rules are layered: national, regional and municipal law, plus the statutes of the community. The 2025 law on tourist use requires enabling by planning, so check before you count on income. Check what the registry and the community allow before you buy, and budget for periods without tenants. The section on renting and investing explains the layers and what we could not read.

§ 20Reading the figures on this page

The figures here come from official sources and describe averages for a region or a period. They do not describe the home in front of you. Use them to set expectations, then compare with recent sales in the exact street. We record the source of each figure in the list at the foot of the page, and we say where we could not read a rule, so that you know what to ask a professional.

General information only. This is not legal, tax or financial advice. Check your own situation with a qualified adviser.