Buying in the Canary Islands: a smart decision in 2026

In recent years, the Canary Islands have established themselves as one of the most attractive destinations for buying property, both for national and international residents. Their privileged climate, political stability, air connectivity, and special tax regime make the archipelago an ideal place not only to live but also to invest. However, before taking the step, it is essential to understand the current prices, the applicable taxes and where it really makes sense to buy according to your needs.

Housing prices in the Canary Islands in 2026

The Canary real estate market has experienced a moderate stabilization after the post-pandemic boom, although there are still significant differences between islands and areas. The prices we provide are indicative: always check updated data before making a decision.

• Tenerife: The south (Costa Adeje, Arona) leads in prices, with averages between €3,200/m² and €4,500/m² in premium tourist areas. In contrast, the north (La Laguna, Santa Cruz) offers options starting from €2,100/m², with greater cultural authenticity.
• Gran Canaria: Las Palmas de Gran Canaria hovers around €2,800/m² in central neighborhoods like Triana or Vegueta, while the south (Maspalomas, Playa del Inglés) exceeds €3,500/m² in complexes with services.
• Lanzarote and Fuerteventura: More affordable, with average prices between €1,900/m² and €2,600/m², especially in less touristic areas like Teguise or Betancuria.
• La Palma and La Gomera: Even more economical, ideal for those seeking tranquility. Properties can be found starting from €1,500/m², although with lower liquidity.

💡 Tip: If you're looking for profitability with vacation rentals, the south of Tenerife and Gran Canaria remain the most profitable. For permanent residence, the north offers better quality of life and less saturation.

Taxes when buying property in the Canary Islands

A key advantage of the archipelago is its differentiated tax regime, thanks to the REF (Economic and Tax Regime). The main taxes are:

• IGIC (Canary Islands General Indirect Tax): Replaces VAT. It varies from 0% to 7%:
  • 0%: first delivery of protected housing (VPO) and, meeting certain requirements of area and price, of the main residence.
  • 7%: general rate for the purchase of new housing from a developer.
  • Commercial premises, garages, and other properties have their own rates; consult each case with an advisor.
• ITP (Property Transfer Tax): Applies to resales. The general rate is 6,5%, with reduced rates for the main residence in some cases (for example, homes up to €200,000, young people, or large families).
• AJD (Documented Legal Acts): Is paid on the purchase of new housing and on the mortgage. In the Canary Islands, the general rate is 0.75%, with special rates depending on the transaction.
• Municipal capital gains tax: Normally paid by the seller and only if there is a real increase in the value of the land.

⚠️ Important: There is no automatic reduced IBI for being a foreigner. However, many municipalities offer bonuses for rehabilitation or energy efficiency.

Where is it advisable to buy in 2026?

The choice depends on your profile:

Avoid areas with extreme tourist saturation (such as part of Playa de las Américas) if you are looking for quality of life in the long term. Also, be cautious with promotions in non-urbanized areas: always check the urban planning qualification with the town hall.

Unique advantages of buying in the Canary Islands

• Weather year-round: More than 300 days of sunshine.
• Connectivity: International airports on all major islands.
• Favorable tax regime: Low IGIC, exemptions on imports.
• Quality of life: Safety, gastronomy, protected nature.
• Access to the EU: Freedom to live and work for EU citizens. From 2025, the 'golden visa' for buying property will no longer exist.

There is also the Remote work has increased the demand for second homes, especially in areas with good 5G coverage and coworking spaces, such as Puerto de la Cruz or Agaete.

Practical advice before buying

1. Check the habitability certificate (required for rental).
2. Consult the General Urban Planning Plan (PGOU) of the municipality.
3. Hire an independent lawyer, not the seller's lawyer.
4. Review community fees: they can be high in tourist complexes.
5. Use live webcams (like those of CanariasLife) to observe the real environment at different times and seasons.

Frequently asked questions (FAQ)

Is it expensive to buy a house in the Canary Islands in 2026?
It depends on the island and area. There are options from 120.000 € in rural areas to over 1 million € in luxury complexes in the south. The average in urban areas is around 250,000–350,000 €.

Do foreigners pay more taxes?
No. The tax system is the same for all buyers, regardless of nationality. However, non-residents must declare annually the Non-Resident Income Tax (IRNR) if they own properties.

Can the property be rented to tourists?
Only if the municipality's planning allows it. The Canary Law 6/2025 on the tourist use of homes has tightened the requirements for new vacation homes, and in areas declared as having a stressed residential market, they may be suspended. Always verify this with the town hall before buying.

Which island has the best appreciation?
Tenerife and Gran Canaria lead in revaluation, with strong price increases in recent years in the most sought-after areas. La Palma is recovering after the eruption, with medium-term investment opportunities.

Is it necessary to reside in the Canary Islands to buy?
No. Any individual or legal entity can purchase a property without prior residency. The notarial process is simple and can be done through a power of attorney if you cannot travel.