Buying a property in the Canary Islands
Warm all year – but not too hot – easy to reach and beautiful in a variety of different ways, no wonder so many of us want to buy a home in the Canary Islands.
The seven islands of the Canaries offer something for every kind of buyer, in a wide range of budgets and whether for a holiday home, retirement or even for work. So which island will you choose?
Why buy a property in the Canary Islands
You will find the Canary Islands archipelago in the Atlantic Ocean, a three or four-hour flight from mainland Europe.
They form the southernmost part of Europe and are one of Spain’s 17 autonomous communities. The Romans named them “the fortunate islands” – and you’ll come to see why – but we know them as Tenerife, Gran Canaria, Lanzarote, Fuerteventura, Las Palma, La Gomera and El Hierro.
The Canary Islands almost year-round warmth make them the perfect escape from northern European winters.
Part of the joy of these volcanic islands is that each looks so different. Whether you fall for Lanzarote’s sweeping, cool-grey vistas, La Gomera’s green valleys or Tenerife’s banana plantations, each is surrounded by the cool, clean Atlantic.
The weather in the Canary Islands
While the weather is different on each island, the Canary Islands have the most consistent warmth in all of Europe, with temperatures varying from 18°C to 25°C throughout the year. In summer, the sun shines for 9 to 10 hours and it rarely rains. In winter the sun shines for six and it does rain, but not often.
Despite being so southern, the Atlantic Ocean offers a cooling breeze and you can swim all year.
Where to buy in the Canary Islands
Tenerife
There are two sides to Tenerife. There are the tourist and expat favourites, with nightlife, clubs and cafés for expats, golf and marinas. Then there is a more natural and rural side, with precipitous gorges, banana plantations and walking routes through the volcanic landscape.
Tenerife is known as “the Island of Eternal Spring”, thanks to its warm year-round climate. But with such a varied landscape, including a 3,700metre mountain, gorges and forests there are micro-climates across the island too. You can be swimming in the sea and trudging through snow on Mount Teide on the same afternoon.
As a general rule the east is breezier, and the west is more sheltered. The north is wetter, cooler and greener (although that’s all relative, it’s much warmer than the UK).
North and east Tenerife
In the far east of the island is the capital and business centre, Santa Cruz de Tenerife, with a population of around 200,000. It hosts one of the world’s largest and wildest carnivals. It’s also a cultural centre, with the Auditorio de Tenerife, the Santa Cruz towers and the Iglesia de la Concepción.
Top spots on the northern coast include La Oratava and its port, Puerto de la Cruz. It has all the beaches, lidos, tourist attractions (the Loro Parque is great!), bars and restaurants you could want, but also an old town and lovely parks and gardens. It certainly feels very Spanish, but there are plenty of places to buy new property too.
If you like a home with a view, check out the area around El Sauzal. There are several attractive villages and towns here, such as Icod de los Vinos, Tacoronte, Los Realejos and Santa Ursula.
South and west Tenerife
The Tenerife that many of are more familiar with is in the south-west corner: Costa Adeje, Costa del Silencio and Los Cristianos. As well as popular golfing areas like Las Américas and Playa de San Juan. You may have to get used to the black beaches, for example Playa de Arena, that are nevertheless always awarded Blue Flags for cleanliness and accessibility. Property is the priciest here.
How to get to Tenerife
There are two international airports on Tenerife, the only Canary Island with more than one; Tenerife North Airport and Tenerife South Airport, which is the largest by far. This is served by numerous cities across the UK and Europe by many airlines including British Airways, easyJet, Jet2, Norwegian and Ryanair. There are also multiple flights connecting the island to the rest of the Canaries, Spain mainland and further into Europe.
You can also access Tenerife by boat. The two main sealines that serve the island are Transmediterranea and Naviera Armas, usually coming into either Los Cristianos or Santa Cruz from the other Canary Islands or mainland Spain.
Lanzarote
Like the rest of the Canary Islands, Lanzarote has volcanic origin. But nowhere is that more obvious than here, with solidified lava streams and extravagant rock formations that date from some serious eruptions 200 years ago.
Today Lanzarote is all protected under UNESCO Biosphere Reserve status, and it’s fascinating how the local people have adapted to the landscape. For example, despite being so arid and lacking in vegetation it has a thriving wine industry. The vines are protected in little rock clusters. The architect César Manrique created an astounding house from the hollow bubbles that some of the lava fields left behind.
Manrique was also instrumental in saving Lanzarote from overdevelopment. You’ll notice how different it is, with buildings limited to low-rise, white cottages with the same green shutters.
The main resorts are along the south-east coast, around Arrecife. These include well known areas such as Puerto del Carmen, Costa Teguise and Playa Blanca. These are also the most widely popular with British, German and Scandinavian residents. The authorities have, however, made a real effort to keep Lanzarote special, so you won’t find too much over development.
The north end of the island is dramatic and beautiful, with friendly towns such as Teguise leading on to dramatic villages like Haria and Yé, in the shadow of ancient volcano craters. The northern coast is best for surfing, with a more alternative vibe in coastal villages like Caleta de Famara.
How to get to Lanzarote
The island is served by Lanzarote airport, located in San Bartolomé, which handles many European flights and internal flights to mainland Spain and the other Canary Islands.
Lanzarote is also easily accessible by boat – there is a weekly ferry from Cádiz on the mainland on a Saturday which arrives in Arrecife on the following Wednesday. Ferries also connect Lanzarote to the other Canary Islands.
Gran Canaria
The second most populous of the Canary Islands, Gran Canaria is noted for its variety of microclimates. The mountain areas are mild, and you may well see frost or snow, although generally lows below 10˚C are uncommon. The summer months are usually rainless.
There’s a variety of landscapes found across the island, including long beaches, white sand dunes, green gorges and beautiful villages. UNESCO’s Biosphere Programme covers part of the island under the East Atlantic Biosphere Reserve Network.
For the convivence of modern city, fun and plenty of nightlife, look to buying in the vibrant capital, Las Palmas. While others will prefer the resort seaside town of Playa del Inglés or “Little Venice”, Puetro de Mogan.
How to get to Gran Canaria
Gran Canaria has a bustling international airport, with a flight time to northern Europe of around four hours. Travel by ferry is also popular: it is just an hour and twenty to Tenerife.
The property market in the Canary Islands
As the largest and the most developed of the islands, Tenerife is most sought-after by international buyers. As such, it has the most varied choice for home hunters, with a range of new-build properties in desirable resorts. However, property prices are higher than the other islands, with the €200,000 being the price of an apartment in Los Cristianos. Having said that, look inland and at the lesser-known resorts and you can still find budget-friendly property.
Meanwhile in Lanzarote, Gran Canaria and Fuerteventura, properties tend to be gorgeous older fincas and villas, with some options for apartments in resorts and the cities.
Is a property in the Canary Islands a good investment?
The Canary Islands has a particularly low property purchase tax (TPI) for resale property of just 6.5%. For comparison, it is 10% in Valencia.
Given the Canary Islands’ reputation for year-round sunshine, a holiday home on any island can be profitable, especially on the larger, easy to get to islands. Moreover, it can stay open year round, rather than need to be shut during the off season. In February, northern Europeans will welcome the sunny break. However, the Canary Islands have recently tightened rules around short-term rentals. So, it is best to ensure with your lawyer that your plans can go ahead and that you fully licence your property.
Steps to buy in the Canary Islands
- Search online: Research the lifestyle offered by each island to pick the one for you, be it Tenerife or Gran Canaria or another. The Your Overseas Home property portal has a fantastic choice of listings in the Canary Islands. 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 budget over to the Canary Islands. 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 your chosen island to see your pick of properties. 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. Then, you will sign and pay the deposit, around 10% of the purchase price. As you’ve now committed to buying your dream 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.