Tenerife, Gran Canaria, Lanzarote, Fuerteventura — in demand year-round, no ITP on resale, one of Spain's most tax-favourable regions.
On resale purchases in the Canary Islands — Tenerife, Gran Canaria, Lanzarote, Fuerteventura, La Palma — ITP applies at a flat 6.5 %, calculated on the higher of purchase price and cadastral reference. That is one of Spain's lowest transfer-tax rates. An important distinction: only on new builds does the Canary IGIC (7 %) plus AJD 0.75 % replace Spanish IVA; on resale properties ITP applies, not IGIC. Some buyer groups qualify for reduced rates; for the foreign second home the standard rate applies. The islands offer a year-round mild climate and good access via several airports. Important for financing: the bank finances the purchase price, not the 6.5 % ITP and the other incidental costs — you must cover those from equity. As of 07/2026; the rules in force at the time of purchase govern.
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.
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.
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.
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.
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.
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.
Tenerife and Gran Canaria have their own markets, tax details and locations — a dedicated page for each.
Concrete sample calculations for typical foreign buyers — as a guide for your own plan.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Pre-filled with typical values for this region — adjust and calculate.
Guide value without guarantee. Spain: max. 70%, Portugal: max. 80% loan-to-value for non-residents. Purchase costs = ITP/IMT + notary + land registry + lawyer + NIE/NIF. Total outlay = equity + purchase costs + all payments over the term. For a binding offer, contact us.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Financing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page →Planning a purchase in the Canary Islands? A free initial consultation in English — also German, French, Dutch, Spanish, Russian. I review your situation and find the right bank in Spain.
Anonymised examples of how buyers financed their property in the Canary Islands.