Buying a Property in Tenerife: What You Need to Know

Buying a property in Tenerife is a big step and one of the most important decisions we make in life. Doing so in a place like Tenerife comes with its own particularities, and in this article we’ll walk you through them. Our island, with its privileged climate, has become not only a favorite holiday destination for most Europeans, but also an increasingly attractive place to settle down. If you’re ready to take the leap and are looking to buy a property in Tenerife, it’s essential to be well informed.

The first step is to define what type of property in Tenerife you’re looking for and the budget you have available. Consider your lifestyle, who will be living in the property, and even your medium- to long-term plans. Tenerife offers a wide range of options, from apartments in Adeje to villas with sea views. Once you know the type of property you want, you can establish a realistic budget that also includes additional expenses such as notary fees, taxes, renovations, etc.

You can also read our article on what to consider when applying for a mortgage.

Both options have their advantages. New build properties in Tenerife offer energy efficiency, construction guarantees, long-term value appreciation, and of course, modern finishes.

If you opt for a resale property, you might find lower prices in consolidated areas, but you’ll likely face higher maintenance costs and possible renovations. This choice depends entirely on the type of purchase you want and can afford.

When buying property in the Canary Islands, there are several steps and concepts you need to understand:

Reservation contract (Contrato de arras): A preliminary document in which buyer and seller agree to the terms of the purchase, securing the transaction for both parties.

Public deed (Escritura pública): Signed before a notary, this document ensures the transfer of ownership to the buyer and is required for registration.

Registry (Registro de la Propiedad): Once purchased, the property must be registered in your name. This is often managed by the notary for an additional cost, offering a convenient option.

Taxes: In the Canary Islands, new builds are subject to IGIC (7%), while resale properties are taxed at ITP (6.5%).

Watch this video for more information.

The area you choose will depend largely on your lifestyle. You may want a more urban environment, or perhaps a quieter, more natural setting.

Adeje is a high-demand area, well connected to the rest of the island and offering everything you need to settle down: schools, healthcare, leisure facilities, and shopping centers.

Santa Cruz, in the north, offers a more urban lifestyle, perfect for those who enjoy the dynamism of the capital and direct access to the island’s cultural life.

The beauty of Tenerife lies in its geographic diversity, with areas to suit every taste. This makes the island a perfect place to live or invest. That’s why, with the right planning, buying a property in Tenerife can be an excellent opportunity.