Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Region focus · Spain · Canaries · §34i

Canary Islands — mortgage for non-residents

Tenerife, Gran Canaria, Lanzarote, Fuerteventura — in demand year-round, no ITP on resale, one of Spain's most tax-favourable regions.

Market analysis

The Canaries market & tax specifics

Top locations

Tenerife, Gran Canaria, Lanzarote, Fuerteventura

Tenerife — the largest island; the south (Costa Adeje, Los Cristianos) premium tourism, the north cheaper. Gran Canaria — Maspalomas, Meloneras, Las Palmas (university, year-round). Lanzarote — shaped by art (César Manrique). Fuerteventura — a surfers' mecca, the longest beaches.

Tax specifics

No ITP, but IGIC

The Canaries = a special economic zone. On resale, ITP transfer tax does not apply (in most provinces 6.5%, instead of 7–10% on the mainland). On new builds, 6.5% IGIC applies instead of 10% IVA. Overall 1–3.5% tax saving versus mainland Spain.

Loan-to-value

Up to 70% LTV

Spanish banks finance in the Canaries as on the mainland: up to 70% loan-to-value for non-residents. CaixaBank, BBVA and Santander have good branch networks on all four main islands.

Climate

Year-round 18–28 °C

The Canaries have Europe's most stable climate corridor. Even in January rarely below 18 °C in the coastal areas. Year-round lettability or personal use.

Letting

VV licence by island

Tourist letting with a Vivienda Vacacional (VV) licence. Rules differ by island and municipality. Southern Tenerife and southern Gran Canaria are classic tourism zones. Residential areas partly with restrictions.

Access

7 airports, year-round

TFS/TFN (Tenerife South/North), LPA (Gran Canaria), ACE (Lanzarote), FUE (Fuerteventura). Year-round direct flights from all major German cities. 4–5 hours' flight time.

Example financings

Two realistic scenarios

Concrete sample calculations for typical foreign buyers — as a guide for your own plan.

Canaries · southern Tenerife

Costa Adeje · €290,000 resale

  • Equity€90,000 (31%)
  • Mortgage€200,000 (69%)
  • Purchase costs (~5%)~€14,500 (no ITP!)
  • Loan-to-value69% LTV
  • Example payment (20 yrs, 3.1%)~€1,115/month
  • Bank typeCaixaBank · Tenerife

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

Canaries · Gran Canaria

Maspalomas new build · €380,000

  • Equity€125,000 (33%)
  • Mortgage€255,000 (67%)
  • Purchase costs (~9%)~€34,000 (IGIC 6.5% instead of 10% IVA)
  • Loan-to-value67% LTV
  • Example payment (20 yrs, 3.1%)~€1,420/month
  • Bank typeBBVA · Gran Canaria

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

Mortgage calculator

Calculate your costs quickly

Pre-filled with typical values for this region — adjust and calculate.

FAQ

Frequently asked questions about the Canary Islands

Why are the Canaries cheaper for tax?
The Canaries are an EU special economic zone. Instead of ITP transfer tax (6–10%), nothing at all is due on resale; on new builds, the Canarian IGIC of 6.5% instead of 10% IVA. A 1–3.5% saving per purchase price.
Which island is best for foreign buyers?
It depends on your strategy. Tenerife (south) offers the largest tourism market. Gran Canaria a good mix of city and beach. Lanzarote architecturally appealing, less touristy. Fuerteventura the cheapest and for water-sports fans.
Which banks finance in the Canaries?
CaixaBank, BBVA, Santander, Banco Sabadell with good branch networks on all four main islands. Bankinter is also active. Terms as on the mainland — 70% LTV, term up to 25 years.
How high are rental yields in the Canaries?
Tourism areas: 4–7% gross depending on location and island. Residential market: 3–5%. Year-round lettability is a major advantage — no seasonal gaps as on the Costa del Sol.
Can I let year-round in the Canaries?
Yes — thanks to the stable climate both summer and winter letting work (winter guests typically 1–3 months). The effective letting rate is therefore considerably higher than at pure summer destinations.
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Related topics

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ITP comparison by region.

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Applying for the NIE

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Legal notice

Author & regulatory separation. Content author: Siegfried Perini. Mortgage brokerage in Spain and Portugal is carried out under the §34i permit of Olga Nikushkina (BAFA-notified). This page does not replace legal or tax advice.