Case reports · Canary Islands

Buy property in the Canary Islands — real cases from practice

Anonymised examples of how buyers arranged a mortgage and financed their property in the Canary Islands.

In short

How much can non-residents borrow?

Banks finance non-residents up to a fixed share of the bank or purchase value depending on country and profile; the remainder plus acquisition costs is equity.

Why do valuations come in conservatively?

Applications regularly go back to a mainland desk; an assessor who does not know the micro-location works from broader, more cautious comparables.

Which tax applies?

On new builds the Canary IGIC replaces the mainland IVA, plus AJD; on resale, standard-rate ITP. Those costs come from your own funds.

Financing a new build in stages →

Across the 5 financings documented here, purchase prices ranged from €625,000 to €1,540,000. Every figure appears in the individual case report.

How do you finance a move to the Canaries in stages?

Reports from the smaller Canary Islands rarely describe a purchase in one step. First comes the second home, then the centre of life. A home office, more room for the family and step-free living for later years follow. The financing follows in stages, and that shapes the structure more than the property itself does. In practice it means the first loan must not block the later one. Anyone who takes the lending limit to its maximum straight away has no room left for the second step. Keeping reserves allows a top-up later or a second property. The sequence of steps therefore belongs in the first plan, not in the second. The Canary tax regime applies: 6.5 percent transfer tax on resales, and 7 percent IGIC plus 0.75 percent AJD on new builds. Documented purchase prices range from 625,000 to 1,540,000 euros.

Property financing in the Canary Islands

The following case reports show, in anonymised form, how different situations in the Canary Islands were financed for non-residents. Creditworthiness, the property and the bank's loan-to-value are always decisive.

5 case reports

From our practice

the Canary Islands

Practical case Fuerteventura: Detached house in Corralejo

More space for family and home office

the Canary Islands

Practical case Lanzarote: House in Puerto del Carmen

Gradual emigration with well-considered financing

the Canary Islands

Practical case Lanzarote: Villa in Costa Teguise

High-quality living with long-term asset planning

the Canary Islands

Practical case Fuerteventura: Bungalow in Caleta de Fuste

Low-barrier living for retirement

the Canary Islands

Practical case La Palma: House in Puerto Naos

A new start after the coastal town's reopening

FAQ

Frequently asked about financing in the Canary Islands

How much can non-residents borrow?

In Spain, banks finance non-residents up to a fixed share of the bank or purchase value depending on country and profile; the remainder plus acquisition costs is equity.

What does the consultation cost?

The initial consultation is free and without obligation; on completion you pay 1 % of the loan amount (no VAT) — no bank commission.

Why do Canary valuations come in conservatively so often?

Because not every decision is taken on the island. Applications regularly go back to a mainland desk, and an assessor who does not know the micro-location works from broader, more cautious comparables.

Which tax applies to a new build on the Canaries?

The Canary IGIC takes the place of the IVA usual on the mainland, alongside AJD stamp duty on the deed. On resale property, ITP applies at the standard Canary rate. In every case those costs come out of your own funds — no lender finances them.

Your contact

A similar situation in Spain? Let's talk.

Every financing in Spain is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.

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Anonymised individual case, not a binding statement for other projects · Siegfried Perini for the owner Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank

Financing mechanics · Canary Islands

What is different in this region

For financing purposes the Canaries are not simply a warmer Costa Blanca. Three things are different here, and they decide whether a case is feasible:

A different tax on purchase. The Canaries apply IGIC instead of the IVA usual on the mainland, so the purchase costs come out differently. As everywhere, they cannot be financed and have to come out of your own funds.
A thinner banking landscape on the ground. Not every branch of a mainland bank decides on the island — applications regularly travel back to the mainland. That costs time, and it shifts the valuation: an assessor who does not know the micro-location values conservatively.
Holiday letting is a question of use. Anyone intending to let the property to tourists needs the corresponding licence — and the bank will ask about it. A financing built on rental income from unlicensed letting does not hold.

What works regularly on the Canaries and is needed less often on the mainland: the combination of equity from home and Spanish financing. Cushioning the valuation uncertainty with more of your own funds gets you through faster.

Market and rules: the Canary Islands in detail Why the valuation decides