Buy property in Gran Canaria: real cases from practice with a Spanish mortgage for non-residents
Anonymised examples of how buyers financed their property in Gran Canaria. The cases almost all describe the same path, from holiday visitor to permanent resident.
Do I have to sell my German home to buy on Gran Canaria?
No. The German home can stay as security or a fallback, or it can be mortgaged in Germany and the released funds brought in as equity. For non-residents, lending in Spain runs up to 70 percent of the lower of purchase price and valuation, so roughly 30 percent equity, and the German property can close that gap without being sold.
How much do banks lend to 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.
Banks lend up to a fixed share — the rest plus costs is equity: 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 of charge and without obligation; on completion, you pay 1 % of the loan amount (excluding IVA) — no bank commission. Our fees.
In the 5 financing deals documented here, the purchase prices ranged from €695,000 to €1,650,000. Each amount is stated in the relevant report and can be found there.
Do I have to sell my house in Germany to buy a property in Gran Canaria? No. The cases from Gran Canaria almost invariably follow the same path from holidaymaker to permanent resident, and a striking number of buyers deliberately choose to keep their home in Germany.
In this context, the German property serves as security or a fallback option, rather than necessarily as a source of financing. Anyone who nevertheless wishes to use it for this purpose can take out a mortgage on it in Germany and contribute the funds released as equity. Both approaches are documented in the reports.
For non-residents, the loan-to-value ratio in Spain is up to 70 % of the lower of the purchase price and the Tasación, meaning around 30 % equity.
The German property can bridge this gap without having to be sold. It then remains both a security and a home.
The Canary Islands have their own tax regime: there is no mainland Spanish IVA, but rather IGIC: for new-build properties, 7 % IGIC plus 1 % AJD; for second-hand properties, 6.5 % ITP (Financing in Gran Canaria). Compared with the mainland, the savings are minimal.
What makes this region different?
Gran Canaria is driven by two very different types of demand: the year-round residential property market centred on Las Palmas, and the holiday and retirement property market in the south (Maspalomas, Playa del Inglés, Meloneras). Banks assess these two markets differently.
In the south, the development is the deciding factor. In holiday resorts, the value of a property depends heavily on the community — its state of repair, maintenance funds and letting arrangements. A development with unclear maintenance funds will depress the valuation, even if the apartment itself is in impeccable condition. In the north, the rent is the deciding factor. Las Palmas is a genuine residential market with reliable comparative rents — the more favourable starting point for financing based on letting. IGIC, not IVA — purchase costs are calculated differently from those on the mainland and are paid from own funds.
Why do many buyers keep their German home?
As security, as a fallback option or to mortgage it, rather than selling it to fund the purchase.
New builds: IGIC plus AJD; resale: ITP: 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.
How were properties in Gran Canaria financed?
The case reports below 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 always decide.
Two island-specific points change the arithmetic, and both are worth settling before an offer rather than after.
Is there transfer tax on the islands?
Yes. 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 claim that the Canaries charge none is false.
The widespread claim that the Canaries charge no transfer tax 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 1%. 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.
How do banks value the two halves of the island?
Differently: the south is tourism-led with strong letting demand, Las Palmas in the north is a year-round urban market, and lenders’ reading of each lands in the tasación.
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.
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.
Frequently asked questions
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.
Do I have to sell my house in Germany to buy a property in Gran Canaria?
No. Several reports on this page describe buyers who deliberately retain their German home — as security, as a fallback option or to raise a mortgage on it. The Canary Islands also have their own tax regime: 6.5 % ITP on second-hand properties, and 7 % IGIC on new-builds instead of 10 % IVA.
How do banks value property in the south and north of Gran Canaria?
Banks assess the two differently. In the south, the value of a property in a holiday resort depends heavily on the community – that is, on its state of repair, reserves and letting arrangements. Las Palmas is a genuine residential property market with reliable comparative rents.
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.
Is there transfer tax (ITP) on a resale property in Gran Canaria?
Yes. 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.
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.
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
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Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.