Lanzarote property for sale: what a bank lends non-residents in a tight market
Lanzarote has less supply than the rest of the Canaries because of its strict building rules. That changes neither the tax rate nor the loan-to-value frame — but it does show up in the bank's valuation.
How do non-residents finance a purchase on Lanzarote?
Non-residents finance a purchase on Lanzarote under the same Canary regime as on Tenerife and Gran Canaria: banks typically lend up to 70% of the lower of purchase price and their own valuation (tasación). The ITP on a resale is 6.5%. Strict building rules can make valuations more conservative, so clarify financing capacity before making an offer.
Lanzarote property for sale: which ITP rate applies on a resale?
Lanzarote property for sale can be financed up to 70% for non-residents, with 6.5% ITP on a resale.
- ITP 6.5% on resale: 6.5% on resale — the standard Canary rate, one of Spain's lowest. On a new build IGIC 7% instead of IVA 10%, plus AJD 1%. Financing a new build in stages.
- How much will a Spanish bank lend? Up to 70% of the lower of purchase price and tasación — the standard Canary frame, whether apartment, house or finca. The Spanish banks.
- Manrique building rules keep supply tight: The César Manrique building rules limit heights and new-build land more strictly. Fewer comparable sales make the tasación come in conservatively more often.
Why is supply in Lanzarote tighter?
César Manrique shaped the island's building rules over decades: low building heights, limited land for new build, no high-rises on the coast. The result is an architecturally consistent island — and a noticeably tighter property market than Tenerife or Gran Canaria.
- Properties go quickly: Less stock on the market means shorter decision windows. Buying in Lanzarote rather than on one of the other Canary islands means planning for that time pressure from the start.
- Fewer reference points: With fewer comparable sales the valuation firm has fewer reference points, so the tasación comes in conservatively more often than on a larger market.
- Financing before reservation: Settle the financing before a property is reserved. In a tight market that is not caution — it is the only way to move at the speed the market demands.
Buying an apartment in Lanzarote: why supply is tighter
Buying a house or an apartment in Lanzarote: does the Canary frame cover both?
Apartment, house or finca: on resale, Lanzarote applies the standard Canary ITP rate of 6.5 % — one of the lowest in Spain. On a new build the Canary IGIC (7 %) takes the place of IVA (10 %), plus AJD of 1 %. Banks lend non-residents up to 70 % of the lower of purchase price and tasación — measured against their own valuation, not against the price you had in mind.
Notary, land registry, the valuation and — where a mortgage is taken — the cost of registering it come on top. Full overview: purchase costs in Spain. Tax rates change.
Buying property in Lanzarote: how much does the bank finance for non-residents?
When non-residents buy a house in Lanzarote, banks, as in Tenerife and Gran Canaria, usually finance up to 70 % of the lower of the purchase price and their own valuation (Tasación). The real estate transfer tax (ITP) on a resale is 6.5 %, one of the lowest rates in Spain. The island's building regulations, shaped by César Manrique, limit new construction, which keeps supply tight and can make bank valuations more conservative than on larger islands.
We recommend clarifying financeability before making an offer, as good properties go quickly on the limited market. The strict height and design rules apply across the island and directly affect resale value and lettability, one reason why experienced buyers in Lanzarote specifically look for properties with already approved protected status.
Why does the valuation in Lanzarote often land below the price, and how do you plan for it?
Because a smaller market offers the valuation firm fewer comparable properties, the tasación in Lanzarote deviates downwards from the actual purchase price more often than on larger islands. Anyone calculating tightly should plan that difference in as an additional equity item from the outset — not once the loan offer comes in lower than hoped.
The mortgage readiness check sets out the realistic frame in a few minutes — before a deposit is committed.
Second route: when does a loan against a German property help in Lanzarote?
Self-employed people with fluctuating earnings, buyers close to the age limit or people with income outside the euro area sometimes get a refusal from the Spanish bank, regardless of the tight supply. In these cases the capital of a German property that has already been paid off can be released and used in Lanzarote as equity, without a Spanish bank having to value the property on site. Details under Raising a loan against a German property.
The second route: mortgaging a German property
Self-employed applicants with fluctuating earnings, buyers close to the age limit, income earned outside the euro area or a property without a robust valuation regularly get a no from the Spanish bank. In that case an unencumbered property in Germany can be mortgaged instead and the capital used as equity here — often faster, and without a Spanish bank having to value your property at all. Details under German property as security.
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
Further reading
Lanzarote: what do the 6.5% ITP and an unregistered existing building mean?
In Lanzarote the Canary ITP of 6.5 % applies to the purchase of existing properties; for new builds, IGIC at 7 % plus 1 % AJD, which is payable only on new builds. Tax and additional costs come from your own funds, and the bank lends solely against the property. In Lanzarote the building regulations are strict, and not every structural change to an existing property is approved and registered.
An unregistered extension reduces the floor area the bank values, and with it the loan, even though the floor area exists and is paid for. The Nota Simple shows the registered position before the deed is executed; the difference from the actual area is equity.
Frequently asked questions
How high is transfer tax (ITP) in Lanzarote?
6.5 % on resale — the standard Canary rate and one of the lowest in Spain. On a new build the Canary IGIC of 7 % replaces the regular IVA of 10 %, plus AJD of 1 %.
Lanzarote (Canary Islands): How does the market differ from that of the other Canary Islands?
There is less choice in Lanzarote because the building regulations, shaped by César Manrique, impose stricter limits on building heights and new development areas than in Tenerife or Gran Canaria. Good properties are snapped up more quickly, and because there are fewer comparable sales, the bank’s valuation may be more conservative. This does not, however, affect the tax rate or the loan-to-value framework.
How much will a Spanish bank lend for an apartment in Lanzarote?
Up to 70 % of the lower of purchase price and tasación — the standard Canary frame, whether the property is an apartment, a house or a finca.
Why is supply in Lanzarote tighter than on the other Canary islands?
The building rules shaped by César Manrique limit building heights and land for new build more strictly than on Tenerife or Gran Canaria. That keeps the island architecturally consistent, but it also restricts what is available — with consequences for the bank's valuation.
Does tight supply affect the financing?
Indirectly, yes: fewer comparable sales mean fewer reference points for the valuation firm, so the tasación comes in conservatively more often than on a larger market.
What if the Spanish bank says no?
Self-employed applicants with fluctuating earnings, buyers close to the age limit or income from outside the euro area sometimes get a no. Mortgaging an unencumbered German property then remains a route — often faster, and without a Spanish bank having to value your property.
Settle what is financeable — before you reserve
It costs nothing and it prevents the most expensive mistake in a foreign purchase: a committed deposit without secured financing.
These figures are as of July 2026 and are not tax advice.
Related pages
German property as security
Raising the equity in Germany when the Spanish bank stops short.
Overview of case reports from the Canary Islands
Market analysis, loan-to-value and conditions for the region.
Fuerteventura property for sale: how much will a bank lend to non-residents?
A developer new build runs differently: the stage payments fall due before a mortgage can even exist — see financing a new build during construction.
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.