Buying property in the Canary Islands: the agency's guide

Why buy property in the Canary Islands?

The climate, first of all: mild all year round, with big differences from one island to another and between the north and south of the same island. Then there's the flight connections, a quality of daily life built around the person, and a property market that offers everything, from an apartment in a complex with a pool to a finca with land.

The Canary Islands are Spain and the European Union: the rules of a purchase are the Spanish ones, with a few taxes that belong to the archipelago alone. People buy here to live, to spend part of the year, or to let the property out: three different projects, and the right home changes with the project.

Which island should you choose?

Eight islands, eight characters. Every island page describes the areas, the climate and the listings available:

• Tenerife: the largest and most varied: sun and services in the south, green and town life in the north, two airports.
• Gran Canaria: dunes and pool complexes in the south, Las Palmas as a proper city in the north, mountains in between.
• Fuerteventura: long beaches and wind, the quietest of the main islands, with a large international community around Corralejo.
• Lanzarote: volcanoes and white houses, Manrique's touch, three seaside residential areas and an island that's quick to get around.
• La Palma: the greenest island, nature and quiet, fincas with land, skies fit for an observatory.
• La Gomera: small and steep, the Garajonay forest, a refuge by ferry from Tenerife: few homes, choices made without rushing.
• El Hierro: the smallest and most remote, a biosphere reserve: bought as a lifestyle choice.
• La Graciosa: the eighth island, with no paved roads: homes are extremely rare, for those with patience.

How to buy property in the Canary Islands, step by step

1. The NIE The Número de Identidad de Extranjero is the code that identifies a foreigner to the Spanish tax office. You can apply for it in Spain or at a Spanish consulate in your home country; without a NIE you can't sign the deed or pay the taxes.
2. The bank account An account with a Spanish bank is needed for payments to the seller, the taxes and the utilities. It's opened with your passport and your NIE.
3. The search and the viewing Choose the island and the area, look through the listings, view the property in person or through someone from the agency who sends you photos and video. Every listing on our site has been read by a person before it went online.
4. The offer and the contrato de arras Once the offer is accepted you sign the arras contract: a preliminary agreement with a deposit that fixes the price, timing and conditions. The property's documents are checked before it's signed.
5. The checks The nota simple from the Registro de la Propiedad shows who owns the property and whether there are mortgages or charges on it; we also check the community fees, the IBI (the local property tax) and the energy certificate.
6. The deed at the notary The escritura pública is signed in front of a Spanish notary; if you don't speak Spanish you can bring an interpreter or grant power of attorney. Signing means paying the balance and receiving the keys.
7. After signing The taxes are paid, the purchase is registered at the Registro de la Propiedad and the utilities are transferred into your name. We stay with you through this stage too.

What does buying property in the Canary Islands cost, on top of the price?

The taxes depend on one thing alone: whether the property is a resale or a new build. The figures below come from the official sources listed at the bottom of the page, read on the date shown.

• On the purchase of a resale property you pay ITP (Impuesto sobre Transmisiones Patrimoniales), which in the Canaries has a general rate of 6.5% on the price.
• If the resale property becomes your habitual residence and you meet the requirements of the Canarian Texto Refundido, ITP drops to 5%.
• For certain situations under Canarian law (for example large or single-parent families, within income limits), ITP on a habitual residence is 1%.

• On the purchase of a new-build property from the developer you don't pay ITP but IGIC (the Canary Islands' indirect tax), with a general rate of 7%.
• IGIC drops to 5% if the new-build property will be your habitual residence, the price (including garage and other annexes) doesn't exceed €150,000 — rising to €225,000 for larger families in the general category and €300,000 in the special category — and you don't already own another home.
• A 3% IGIC rate applies to the habitual residence of certain categories (including a household income of up to €24,000), within the same price caps.
• On the notarial deed for a new-build property (subject to IGIC) you also pay AJD, Actos Jurídicos Documentados, at 1%.
• For other notarial deeds on property not subject to IGIC, AJD is 0.75%.

On top of these come the notary, the Registro de la Propiedad and, if you use one, the gestoría that handles the paperwork: these are fees that depend on the price and the municipality, and we ask for them on your behalf before signing. Agency commission in the Canaries is normally paid by the seller.

If the seller isn't a Spanish tax resident, the buyer withholds 3% of the price and pays it to the Spanish tax office using form 211, as an advance on the seller's tax.

This page is general guidance, not tax or legal advice. Rates change with the budget laws: always check the sources listed, and for your own situation consult a qualified professional.

What mistakes should you avoid?

• Signing the arras without having read the nota simple: that's where you find out about mortgages, seizures and co-owners.
• Trusting a listing without knowing who publishes it: the big portals are full of duplicate or decoy listings. We only publish properties whose provenance we know.
• Forgetting the recurring costs: community fees, IBI, water and electricity, which have their own quirks in the Canaries.
• Buying to let to tourists without checking that the area and the building allow it: the rules on holiday letting change from municipality to municipality.
• Underrating the local climate: sun, wind and humidity change within a few kilometres. Go and see the property in the season you plan to live there.

How I work with buyers

I'm Luca. I've lived in the Canaries since 2014 and have run a business here since 2017: I look after the property side of Toda Canarias. I talk to you in English from your first question to the deed. I've read every listing on the site myself before it went online; the ones that come from partner agencies on the islands are rechecked on price every night. Inmobilio, the site's assistant, replies at any hour and passes me your contact when it matters.

If the right home isn't there today, I note what you're looking for and let you know when it arrives: that's how our archive learns what's missing.