Buy property in Gran Canaria — real cases from practice
Anonymised examples of how buyers financed their property in Gran Canaria.
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.
Must I sell my German home?
No — many buyers deliberately keep it as security, a fallback option or to mortgage, rather than selling to fund the purchase.
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.
Across the 5 financings documented here, purchase prices ranged from €695,000 to €1,650,000. Every figure appears in the individual case report.
Do I have to sell my German home to buy on Gran Canaria?
No. The cases from Gran Canaria almost all describe the same path, from holiday visitor to permanent resident. A striking number of buyers deliberately keep their German home. That property becomes security or a fallback rather than a source of funds. Buyers who do want to use it can mortgage it in Germany and bring the released funds in as equity. Both routes appear in the reports. The Canaries have their own tax regime: not mainland Spanish VAT but IGIC: 7 percent IGIC plus 0.75 percent AJD on new builds, and 6.5 percent transfer tax on resales. That lowers acquisition costs against the mainland only slightly. For non-residents, lending in Spain runs up to 70 percent of the lower of purchase price and valuation, so roughly 30 percent equity. The German property can close that gap without being sold. Purchase prices in the documented cases range from 695,000 to 1,650,000 euros.
Property financing in Gran Canaria
The following case reports show, in anonymised form, how different situations in Gran Canaria were financed for non-residents. Creditworthiness, the property and the bank's loan-to-value are always decisive.
Two island-specific points change the arithmetic, and both are worth settling before an offer rather than after.
Transfer tax on the islands: 6.5%, not zero
Gran Canaria falls under the Canary tax regime. On a resale the standard transfer-tax rate (ITP) is 6.5%, charged on the higher of the purchase price and the cadastral reference value. The widespread claim that the Canaries charge no transfer tax is false and understates closing costs by roughly 6.5% of the price — enough to break a tightly planned purchase at the notary appointment.
Reduced rates of 5%, 4%, 1% and 0% exist but depend on the property being a primary residence and on personal circumstances such as age under 35, large families, disability of 65% or more, or protected housing. A non-resident buying a second home pays the standard rate.
On a new build, IGIC of 7% applies instead of the mainland IVA of 10%, plus stamp duty (AJD) at a standard 0.75%. The genuine saving against the mainland is therefore 0.5 to 3.5 percentage points on a resale and around 3 points on a new build.
Region-by-region detail sits on Gran Canaria property for sale — costs, regions and financing.
Valuation and the two halves of the island
The south — Maspalomas, Meloneras, Playa del Inglés, Puerto Rico — is tourism-led, with strong letting demand and firm prices. Las Palmas in the north is an urban, year-round market with a different buyer profile and a deeper resale market. Lenders read the two halves differently, and that reading lands in the tasación.
Lending for non-residents stops at 70% of the lower of purchase price and valuation. On the islands the valuation undershoots the agreed price more often than on the mainland, especially for older apartment stock in tourist developments. The gap is equity, and it appears late in the process when there is little time to close it.
If holiday letting is part of the plan, settle the licence position before you make an offer. Registration is required, several municipalities restrict new licences, and most lenders will not count rental income that depends on a licence not yet granted.
From our practice
Practical case Gran Canaria: Villa in Meloneras
High-quality living with a view of the Atlantic
Practical case Gran Canaria: House in Las Palmas de Gran Canaria
Family life in the island capital
Practical case Gran Canaria: Apartment in Playa del Inglés
The step from holiday guest to permanent resident
Practical case Gran Canaria: Apartment in Maspalomas
Planning retirement in the sun early
Practical case Gran Canaria: Villa in San Agustín
Deliberately keeping the home in Germany
Frequently asked about financing in Gran Canaria
How much can non-residents borrow?
What does the consultation cost?
A similar situation in Spain? Let's talk.
Every financing in Spanien is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
Book a free consultationAnonymised 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