The largest Canary island, with two airports and a clear north–south split: premium tourism in the south, year-round living in the north. Resale carries ITP at 6.5%, a new build IGIC at 7% rather than 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%.
South (Costa Adeje, Los Cristianos): guaranteed sun, largest holiday-letting market, highest prices. North (Puerto de la Cruz, La Laguna): greener, cheaper, a genuine year-round housing market.
For non-residents as on the mainland: up to 70% LTV, terms up to 25 years — several major Spanish banks with dense branch networks.
On Tenerife the Canary ITP rate of 6.5 % applies on resale purchases, calculated on the higher of purchase price and cadastral reference — one of Spain's lowest transfer-tax rates. Only on new builds does the Canary IGIC (7 %) plus AJD 0.75 % replace Spanish IVA; on resale properties ITP remains. The market splits into the sun-drenched south (Costa Adeje, Los Cristianos) with TFS airport and the greener, more urban north around Santa Cruz and Puerto de la Cruz with TFN airport. The year-round mild climate makes the island attractive both as a second home and for letting. 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.
The island's tourist core and its most expensive market. Costa Adeje is the upmarket address (San Eugenio, Fañabé, El Duque); Los Cristianos and Playa de las Américas are an established holiday market with high letting occupancy. Near-guaranteed sun almost all year.
El Médano is Europe's wind- and kitesurf hub — a weather-independent demand market of its own. Golf del Sur and Amarilla Golf appeal to golf buyers: quieter, resort-adjacent, often cheaper per square metre than the Adeje strip.
The green, more authentic north: cooler, more Spanish in character and notably cheaper. Puerto de la Cruz as a traditional resort, Santa Cruz and the university town of La Laguna (UNESCO) with a genuine year-round housing market rather than a pure holiday one.
A special economic zone — the purchase tax is still due. Which tax you pay on Tenerife depends on whether the property is resale or new. Resale is charged ITP at the standard rate of 6.5%. A new build is charged the Canarian IGIC at 7% in place of the 10% IVA, with AJD at 0.75% on top. Set against the mainland that works out at 0.5–3.5% less on resale (6.5% instead of 7–10%) and roughly 3% less on a new build (7% instead of 10%).
Spanish banks finance in Tenerife as on the mainland: up to 70% loan-to-value for non-residents. Several major Spanish banks have dense branch networks in Adeje, Los Cristianos and Santa Cruz.
Tenerife South (TFS) handles the holiday flights from Germany; Tenerife North (TFN) the inter-island and mainland links. Both airports take year-round direct flights from all major German cities, around 4.5 hours in the air.
Concrete example calculations for typical foreign buyers — as a guide for your own plan.
| Item | Amount |
|---|---|
| Equity | €100,000 (31%) |
| Mortgage | €220,000 (69%) |
| Purchase costs (~9%) | ~€29,000 (ITP 6.5%) |
| Loan-to-value | 69% LTV |
| Example payment (20y, 3.1%) | ~€1,225/month |
| Bank type | Major Spanish bank · Adeje |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
| Item | Amount |
|---|---|
| Equity | €70,000 (33%) |
| Mortgage | €140,000 (67%) |
| Purchase costs (~9%) | ~€19,000 (ITP 6.5%) |
| Loan-to-value | 67% LTV |
| Example payment (20y, 3.1%) | ~€780/month |
| Bank type | Major Spanish bank · Puerto de la Cruz |
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 Tenerife — 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.
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Tenerife, Gran Canaria, Lanzarote, Fuerteventura compared.
Las Palmas as a year-round city and the south around Maspalomas.
Tenerife falls under the same Canarian rules as Gran Canaria, Lanzarote and Fuerteventura. A paid-off property in Tenerife 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.
Planning a purchase on Tenerife? A free initial consultation in English — also German, French, Dutch, Spanish, Russian. I review your situation and find the right bank in Spain.
Monthly instalment, total cost and equity requirement for your exact figures.
Anonymised examples of how buyers financed their property in Tenerife.