Buying a property in Lanzarote
There’s something beguiling and magical about Lanzarote, although you might not think that when you first drive out of the airport and see the island’s strange volcanic landscape. It’s almost treeless, but with extinct volcanic calderas rising above the sweeping plains.
But then you see the vineyards, wildflowers, pretty homes, golden sand beaches and crashing Atlantic waves, and Lanzarote is easy to fall in love with.
Lanzarote has long been a popular option for international property buyers, but while other Canary Islands allowed over-development, in Lanzarote the beautiful landscape, towns and villages have been kept low-rise and liveable.
The island, which at only 60 kilometres by 25 you can drive across in an hour or so, has pretty villages that feel very traditional, but also a lively expatriate community too.
Why you will love a home in Lanzarote
Lanzarote is the Canary archipelago’s south-easternmost island. The island offers year-round sunshine, fun resorts and an abundance of natural and architectural beauty.
Centuries of volcanic activity has given Lanzarote, a stunning natural landscape. It is a UNSECO World Biosphere Reserve. To appreciate the island’s beauty, head to Parque Nacional de Timanfaya, the result of volcanic eruptions in the 18th and 19th centuries, where you can visit the Montañas del Fuego (Mountains of Fire). It is an idyllic location for hiking and cycling.
Lanzarote also has beautiful architectures, thanks to local architect and artist César Manrique. In response to the growing tourism industry, César Manrique was influential in ensuring regulations for new buildings. Generally, buildings can be no more than three storeys high. They must be painted in a traditional white, with accents of brown and green shutters. New buildings must fit in the existing aesthetic of the island. As such, Lanzarote has retained a charming, old-fashioned feel that you won’t find in more built-up islands like Tenerife.
From white to dark golden sands, bustling to quiet, shallow waters to big waves, Lanzarote has an array of lovely beaches.
It has become a popular surfing spot on its western coast, and all wind and watersports are accommodated. So is cycling, along its quiet roads and gently undulating landscape, dotted with friendly cafes and quality restaurants.
There are several golf courses, as well as lush gardens to enjoy and get tips on creating your own.
The weather in Lanzarote
Lanzarote enjoys sun throughout the year. It is on the same latitude as Morocco and has warm winds, with barely 20 days of rain a year.
The surrounding Atlantic tends to keep Lanzarote cool in summer. August is the hottest with highs of 30°C. Despite being the coldest month, January still experiences highs of 21°C. For many northern Europeans and North Americans, this makes Lanzarote the perfect place to own a second home and escape the worst of winter’s chill.
The Atlantic is never as warm as the Mediterranean, but being so far south you can swim all year in Lanzarote.
How to get to Lanzarote
While there is some seasonal variation in flight frequency and prices, you can fly to Lanzarote from most major European and UK airports, in around four hours from the UK. Lanzarote airport is just five kilometres from the capital, Arrecife.
Lanzarote also has a ferry service. You can travel to its nearest Canary Island neighbour, Fuerteventura, in just 30 minutes.
Where to buy property in Lanzarote
If you’re after the ease and fun of resort living, look to Puerto del Carmen, Playa Blanca and Costa Tesguise. These are perfect for those seeking plenty of beach time and a huge pick of shops, bars and restaurants. If you are thinking of buying a rental property, it will be most successful in or close to one of these resorts.
With an urban beach, marina, shops, restaurants and the administrative goings on of the island, Arrecife, the capital, is small but bustling. It has less of a year-round holiday destination feel to it.
You can see your budget stretch the furthest in rural Lanzarote, which is mostly in the north of the island. It has a more authentic, tranquil atmosphere. But you will need a car or bus to get to main amenities.
What can you get for your budget in Lanzarote
Property in Lanzarote is generally affordable, but the choice is limited by the island’s small size. For around €150,000, you can buy a small apartment by the coastline. For a family villa, you’d need upwards of €230,000.
With its building controls, Lanzarote does not have much of a market for new-build properties. For those with big budgets, you could purchase a large villa with a private pool and beautiful vistas from around €450,000.
Is a property in Lanzarote a good investment?
The Canary Islands has an especially low property purchase tax (TPI) for a resale property, of just 6.5%. For comparison, in Valencia, it is levied at 10%.
Recently, the Canary Islands has been working towards stricter rules around holiday rentals. Still, Lanzarote is a popular tourism destination, with three million visiting each year. Plus, Lanzarote’s reputation for winter sunshine means that you can rent out beyond the peak season.
Steps to buy property in Lanzarote
- Search online: Determine what you can buy for your budget, as well as a list of features you would like in a home (close proximity to the beach or golf, mountain or sea views).
- Form a team of experts. Once you have chosen a handful of properties that tick your boxes, reach out to an estate agent. They will be able to talk through the area and what you are looking for in a home in greater detail. You will also need an English-speaking lawyer to ensure that the purchase is legally secure. Plus, a currency specialist like Smart Currency Exchange can help you to transfer your funds over to Lanzarote. You may also want to connect with a financial advisor and a mortgage specialist.
- Book a viewing trip. Once you have your team in place, head out to Lanzarote to see your pick of properties. If you haven’t narrowed down to a specific town, check the journey times between each home. If you find a home that ticks your boxes, then reconnect with your professional team and make an offer.
- Once you have made an offer: If the seller accepts your offer, you will sign a reservation contract and pay a fee to take it off the market. While surveys are not the norm in Spain, many international buyers prefer to have one. Then, you will sign and pay the deposit, around 10% of the purchase price. As you’ve now committed to buying your dream Lanzarote home, lock in your exchange rate to ensure that you do not lose out on thousands. Meanwhile, your lawyer will contact the notary to ensure the legality of the sale.
- Hold the keys in your hand: You will need to sign the sale contract, escritura pública at the notary’s office. Finally, pay the balance of the purchase price, minus the deposit you have paid. You must also pay the relevant taxes (ITP), stamp duty, notary fees and legal fees.