Meloneras new build · €380,000
| Item | Amount |
|---|---|
| Equity | €125,000 (33%) |
| Mortgage | €255,000 (67%) |
| Purchase costs (~10%) | ~€38,000 (IGIC 7% + AJD 1%) |
| Loan-to-value | 67% LTV |
| Example payment (20y, 2.4%) | ~€1,340/month |
| Bank type | Major Spanish bank · Maspalomas |
Region focus · Spain · Canaries · Gran Canaria · §34i
Gran Canaria property for sale: which tax applies when you buy and what a bank will lend
The "miniature continent" with two faces: the real city of Las Palmas with a year-round housing market, and the tourism south around Maspalomas. On Gran Canaria, a resale purchase is taxed at 6.5% ITP, a new build at 7% IGIC in place of the 10% IVA.
Do I pay transfer tax when buying property on Gran Canaria?
Yes, on a resale you pay ITP at a flat 6.5%, charged on the higher of purchase price and cadastral reference. On a new build, IGIC of 7% replaces the 10% IVA, plus AJD of 1%. The bank finances the purchase price, not the ITP or other incidental costs, so you cover those from equity.
Not every bank lends against income in a foreign currency — we approach the ones that do. For the full evaluation, enter your income converted into euros.
Your estimate
- Monthly payment(calculation rate—)—
- Loan amount—
- Loan-to-value (LTV)—
- Purchase costs—
Our brokerage focus starts at a loan amount of around €300,000 — we arrange smaller loans too and will give you an honest read on whether it makes sense in your case.
Estimate, no guarantee. The interest rate is the calculation basis for this example, not a market rate or commitment — the rate you actually achieve depends on your credit profile, the property and the bank. Spain: max. 70 % LTV for non-residents. Purchase costs by region as on our purchase-costs page; the other items are guide values.
Buy property in Gran Canaria: how do resale and new-build taxes differ?
Buying property on Gran Canaria means 6.5% ITP on a resale or 7% IGIC on a new build, with up to 70% LTV.
- What is the purchase tax in Gran Canaria? Resale: ITP 6.5% on the higher of purchase price and cadastral reference. New build: Canarian IGIC 7% instead of IVA 10%, plus AJD 1%. Financing a new build in stages.
- Las Palmas for long lets, the south for holiday lets: 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.
- How much will a Spanish bank lend? 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. The Spanish banks.
How does the Gran Canaria market differ by area?
Las Palmas is a major city with a year-round housing market and long-term rentals, while the south, around Maspalomas and Meloneras, is a traditional market for tourism and holiday rentals. The south-west coast, including Puerto Rico, Amadores and Mogán, is popular with long-term winter visitors.
- How much is the property transfer tax in Gran Canaria? Second-hand property: ITP 6.5 % on the higher of the purchase price and the cadastral value. New-build: Canarian IGIC at 7 % instead of IVA at 10 %, plus AJD at 1 %. Finance a new-build in instalments.
- How much does a Spanish bank lend? For non-residents, the same key figures apply as on the mainland: up to 70 % loan-to-value ratio, terms of up to 25 years — several major Spanish banks have their own programmes for non-residents. Spanish banks.
- Do I have to pay land transfer tax if I buy a house in Gran Canaria? Yes — anyone buying a second-hand house in Gran Canaria pays the ITP, just as they do on the mainland, at a flat rate of 6.5 % (calculated on the higher of the purchase price or the cadastral value).
The IVA is waived only in the case of new-build properties: instead of 10 % IVA, you then pay 7 % IGIC plus 1 % AJD. This makes Gran Canaria one of the most affordable regions in Spain in terms of property transfer tax.
Reduced rates apply to certain categories of buyers; however, the standard rate of 6.5 % applies to second homes owned by foreign nationals. On the island, the market is concentrated in Las Palmas and the tourist-oriented south (Playa del Inglés, Maspalomas); LPA Airport ensures year-round accessibility.
Important information regarding financing: The bank finances the purchase price, but not the 6.5 % ITP or the other purchase costs — these must be covered by your own funds. As at July 2026.
Las Palmas de Gran Canaria: Unlike the islands that are purely holiday destinations, Gran Canaria has a proper city: Las Palmas, with its university, harbour, Las Canteras city beach and the old town of Vegueta/Triana. A year-round property market, a growing remote-working and digital nomad scene — demand for long-term rentals rather than purely holiday-season lets.
Maspalomas, Meloneras, Playa del Inglés: The tourist hub centred around the Maspalomas dunes. Meloneras is an upmarket, newer resort area, while Playa del Inglés is an established mass-market destination. High occupancy rates, guaranteed sunshine, a classic holiday rental market.
Puerto Rico, Amadores, Mogán: The south-west coast, with its sheltered bays (Amadores), the holiday harbour of Puerto Rico and the picturesque Puerto de Mogán. The most sheltered and sunniest part of the island — popular with long-stay winter visitors.
ITP 6.5 %, new-build IGIC 7 %: Special Economic Zone, but not tax-free. Anyone buying second-hand property in Gran Canaria pays ITP at the standard rate of 6.5 % — the calculation example below shows what this amounts to in euros.
Anyone buying a new property pays the Canary Islands’ IGIC at 7 % instead of the 10 % IVA, plus the AJD at 1 %.
The difference compared with the mainland is 0.5–3.5 % for second-hand properties (6.5 % instead of 7–10 %) and around 3 % for new-build properties (7 % instead of 10 %).
Up to 70 % LTV (loan-to-value ratio): Spanish banks offer the same financing terms in Gran Canaria as on the mainland: up to 70 % loan-to-value ratio for non-residents. Several major Spanish banks operate their own programmes for non-residents.
A centrally located airport (LPA): Gran Canaria Airport (LPA) is centrally located between Las Palmas and the south — within easy reach of both markets. Direct flights are available all year round from all major German cities, with a flight time of around 4.5 hours.
What do two example cases from Gran Canaria show?
Concrete example calculations for typical foreign buyers — as a guide for your own plan.
Calculate your costs quickly: Prefilled with typical values for Gran Canaria — adjust the figures and the result updates at once; the region and its tax rate are already set.
What is in the full evaluation by email?
Everything the calculator does not show on the page: equity needed including purchase costs, every cost item, total interest and total cost — and, with your income, how much you can afford under the 35 % rule.
We approach at least 2 of the 15–20 banks we work with for your case (31 in Spain, 14 in Portugal); which ones fit, we discuss in person.
Case studies from Gran Canaria: how have buyers financed their property?
Anonymised examples of how German-speaking buyers have financed their property in Gran Canaria.
Gran Canaria: what is payable from your own funds: In Gran Canaria, the Canarian ITP rate of 6.5 % applies to the purchase of existing properties; for new-build properties from a developer, IGIC at 7 % applies, plus 1 % AJD, which is only payable on new-build properties.
Reduced rates are subject to the condition that the applicant’s primary residence is in the Canary Islands and are not available to non-residents. Regardless of the rate, the following applies: transfer tax, notary, Registro and Tasación must be paid from equity.
With financing up to a share of the lower of the purchase price and the Tasación, the actual requirement is therefore greater than the simple difference from the loan-to-value ratio.
Tenerife: A direct comparison with the neighbouring island.
How can you use a property in Gran Canaria as a source of capital?
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.
Inheritance tax, Canary Islands: 99.9% relief, with no cap, since 06.09.2023 — groups I and II, meaning parents, children and spouses (art. 24 ter Decreto Legislativo 1/2009, as amended by Decreto-ley 5/2023). In the Canaries the inheritance relief also extends to group III.
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. Scope: inheritance tax, groups I and II (parents, children, spouses). Regional tax law changes regularly.
What was actually paid in this area. Portal prices are what sellers ask. What was recorded at the notary is published by the Spanish notaries themselves: the Portal Estadístico del Notariado — free, no registration, and searchable down to postcode level.
In the first quarter of 2026 the prices paid ran 29 per cent below asking prices, the widest gap since 2007. For a mortgage that is the figure that counts: the bank's valuer works from completed sales, not from listings. → Portal Estadístico del Notariado · What that means for your financing · Where the numbers come from
Case reports Gran Canaria: Anonymised examples of how buyers financed their property in Gran Canaria.
Las Canteras city flat · €245,000
| 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, 2.4%) | ~€865/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.
Frequently asked questions
Las Palmas or the south — which suits me?
Las Palmas is a real city with a year-round housing market, a university and a growing remote-worker scene — ideal for personal use with an urban everyday life, or for long-term letting. The south (Maspalomas, Meloneras, Puerto Rico) is a classic tourism and holiday-letting market with guaranteed sun. City living and long lets → Las Palmas; holiday yield → the south.
Is Gran Canaria suitable for digital nomads and long-term letting?
Las Palmas is one of Europe's established remote-work bases — year-round mild climate, city infrastructure and a city beach. That supports steady demand for furnished long-term letting (1–6 months), which is less seasonal than the pure holiday south.
How much do I save through the Canary tax status?
The islands are a special economic zone, but the purchase tax does not disappear. Resale in Gran Canaria carries ITP at the standard rate of 6.5%, assessed on the purchase price or the cadastral reference value, whichever is higher.
New builds carry IGIC at 7% in place of the 10% IVA, with AJD at 1%. Netted against the mainland: 0.5–3.5% on a resale (6.5% instead of 7–10%), roughly 3% on a new build (7% instead of 10%).
Which banks finance in Gran Canaria?
We approach at least 2 of 15–20 institutions per case; several major Spanish banks maintain a strong branch network in Las Palmas and the south. Which one fits your case is settled in conversation. For non-residents the same benchmarks apply as on the mainland — up to 70% LTV, terms up to 25 years.
May I let to tourists?
Tourist letting requires a Vivienda Vacacional (VV) licence, whose issuance depends on the municipality and zoning. Usually possible in the southern tourism zones, partly restricted in residential areas of Las Palmas. Check the property's specific licence status before buying.
What rental yields can I expect in Gran Canaria?
In the tourist south, 4–7% gross depending on property and occupancy; in the Las Palmas long-term market rather 3–5%, but steadier and year-round. The mix of city and holiday market makes the island attractive for different strategies.
Request a mortgage
Planning a purchase on Gran Canaria? A free initial consultation in English — also German, French, Spanish, Russian. We review your situation and find the right bank in Spain.
This is not tax advice.
Related pages
Calculator
Mortgage calculator
Monthly payment, loan and purchase costs by region straight away; total cost and equity needed by email.
Canaries · overview
Canary Islands: all islands
Tenerife, Gran Canaria, Lanzarote, Fuerteventura compared.
Canaries · island
Tenerife — mortgage for non-residents
North–south split, two airports, the largest holiday market.
Case reports · Gran Canaria
See all Gran Canaria case reports
Anonymised case reports on financing in Gran Canaria for non-residents in Spain: whether the German home has to be sold, and what the island tax is.
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.