The "miniature continent" with two faces: the real city of Las Palmas with a year-round housing market, and the tourism south around Maspalomas. A resale purchase is taxed at 6.5% ITP, a new build at 7% IGIC in place of the 10% IVA.
Resale: ITP 6.5% on the higher of purchase price and cadastral reference. New build: Canarian IGIC 7% instead of IVA 10%, plus AJD 0.75%.
Las Palmas is a real city with a year-round market and remote-worker scene — city living and long lets. The south (Maspalomas, Meloneras) is a classic tourism and holiday-letting market.
For non-residents as on the mainland: up to 70% LTV, terms up to 25 years — several major Spanish banks with a strong network in Las Palmas and the south.
Yes — contrary to a common assumption, resale purchases in the Canary Islands do incur ITP, at a flat rate of 6.5 % (on the higher of purchase price and cadastral reference). Only on new builds does IVA fall away: instead of 10 % IVA you then pay IGIC 7 % plus AJD 0.75 %. That makes Gran Canaria one of Spain's cheapest regions for transfer tax. Certain buyer groups qualify for reduced rates; for the foreign second home the standard 6.5 % rate applies. On the island the market centres on Las Palmas and the tourist south (Playa del Inglés, Maspalomas); LPA airport ensures year-round access. Important for financing: the bank finances the purchase price, not the 6.5 % ITP and the other incidental costs — you cover those from equity. As of 07/2026.
Unlike the pure holiday islands, Gran Canaria has a real city: Las Palmas, with a university, port, the city beach Las Canteras and the old town of Vegueta/Triana. A year-round housing market and a growing remote-worker and digital-nomad scene — demand for long-term letting rather than a pure holiday season.
The tourism powerhouse around the Maspalomas dunes. Meloneras as an upmarket, newer resort address, Playa del Inglés as an established mass market. High occupancy, guaranteed sun, a classic holiday-letting market.
The south-west coast with sheltered bays (Amadores), the marina resort of Puerto Rico and picturesque Puerto de Mogán. The most sheltered and sunniest part of the island — popular with long-stay winter guests.
A special economic zone, not a tax-free one. Buying a resale property in Gran Canaria means ITP at the standard rate of 6.5% — the worked example further down shows what that comes to in euros. Buying new means the Canarian IGIC at 7% rather than the 10% IVA, and AJD at 0.75%. The gap to the mainland is 0.5–3.5% on a resale (6.5% instead of 7–10%) and roughly 3% on a new build (7% instead of 10%).
Spanish banks finance in Gran Canaria as on the mainland: up to 70% loan-to-value for non-residents. Several major Spanish banks have a strong network in Las Palmas and the south.
Gran Canaria airport (LPA) sits centrally between Las Palmas and the south — short journeys to both markets. Year-round direct flights from all major German cities, around 4.5 hours' flight time.
Concrete example calculations for typical foreign buyers — as a guide for your own plan.
| Item | Amount |
|---|---|
| Equity | €125,000 (33%) |
| Mortgage | €255,000 (67%) |
| Purchase costs (~10%) | ~€38,000 (IGIC 7% + AJD 0.75%) |
| Loan-to-value | 67% LTV |
| Example payment (20y, 3.1%) | ~€1,420/month |
| Bank type | Major Spanish bank · Maspalomas |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
| Item | Amount |
|---|---|
| Equity | €80,000 (33%) |
| Mortgage | €165,000 (67%) |
| Purchase costs (~9%) | ~€22,000 (ITP 6.5%) |
| Loan-to-value | 67% LTV |
| Example payment (20y, 3.1%) | ~€920/month |
| Bank type | Major Spanish bank · Las Palmas |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Prefilled with typical values for Gran Canaria — 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.
The complete breakdown with your exact figures — loan, equity required, total interest — straight to your inbox.
Tenerife, Gran Canaria, Lanzarote, Fuerteventura compared.
North–south split, two airports, the largest holiday market.
Gran Canaria falls under the same Canarian rules as Tenerife, Lanzarote and Fuerteventura. A paid-off property in Gran Canaria does not have to be sold to free up capital — it can be mortgaged instead.
For inheritance, the rules of the autonomous community holding the highest value of the Spanish estate apply. With a single Spanish property that is simply its region. The relief must be claimed within the filing deadline — miss it and it becomes contentious.
How far a Spanish bank will go on an unencumbered property, what changes with the owner's age, and what the released money may be used for is set out in full under releasing capital from a Spanish property.
A gift of the released money to a child is taxed in Germany, not in Spain — see inheritance and gift tax in Spain. This is not tax advice; Inheritance tax, groups I and II (parents, children, spouses). Autonomous tax law changes; review quarterly.
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Monthly instalment, total cost and equity requirement for your exact figures.
Anonymised examples of how buyers financed their property in Gran Canaria.