Is it a good time to buy property in Canary Islands?
While international investors are holding on thinking that the real estate Canaries market prices will continue going down and there will be plenty of opportunities during 2021, real estate experts agree the time to buy is now.
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The Canary Islands not only represent a first-class tourist destination for people from all over the world, but they also boast a thriving real estate market. So much so that, at the moment, they offer an excellent opportunity for investors.
So, if you're looking for cheap homes for sale in Spain and you like the idea of living by the beach on a paradise island, check out the two cheapest Canary Islands to live on – Gran Canaria and Tenerife. It doesn't hurt that they're the islands with the best weather too!
While house price growth peaked at 8.5% year-on-year in the first quarter of 2022, according to Eurostat, it fell to 3.5% in the first quarter of this year. Other price trackers such as TINSA also show a clear downward movement.
If you are moving to the Canary islands from another EU or EEA country, you won't need a visa to enter the islands. If you are staying permanently, you'll need to obtain a residence permit and an NIE card which will be issued by the immigration service and is needed to file taxes, open a bank account, etc.
The average price is just under 2,400 euros/m2 in the better areas. Houses/villas typically cost between 220,000 and 3 million euros and two-bedroom apartments between 170,000 and 540,000 euros.
The luxury of Living in Exclusive HomesThe most exclusive residential areas are Tafira, Santa Brígida and Maspalomas in Gran Canaria; La Orotava, Tacoronte, Puerto de la Cruz and La Laguna in Tenerife and Puerto Calero in Lanzarote.
Living in the Canary Islands is affordable. It's cheaper than the UK in a heap of aspects. For example, data from Numbeo suggests rental prices in the Canary Islands are 73.28% lower than in London, on average. Groceries are kinder to the bank balance too.
Lanzarote. Lanzarote tends to be the hottest and most arid of the Canaries, as it is closest to the Sahara desert and because it is one of the lowest lying islands. The Sahara can bring high temperatures and fine sand to Lanzarote, causing occasional heatwaves.
If you are buying a new property in Gran Canaria, you will pay 7% IGIC (General Indirect Tax of the Canary Islands) + 1% of the purchase price. If you are buying a second-hand home, the rate is 6.5% of the purchase value. On top of that, you will have to pay registration fees.
The canaries are an EU tax haven, although not in the traditional sense: this jurisdiction, part of Spain, makes available many tools for tax planning of known companies. First, the Canaries tax system is easier and with lesser tax burden than other European countries, fully legal and authorized by European Commission.
How long can people stay in the property for? For 90 days in a period of 180 days, without any need to obtain a tourist visa. For longer periods, British citizens are required to obtain a regular residence visa.
It is a very good place to buy property whether it be for investment purposes, a second home or even your primary residence in the sun. Otherwise known as the land of eternal spring due to the fantastic weather which very rarely drops below 20º C in the winter months.
Anyone with a sufficient motive or connection can become a resident of the Canary Islands. However, if you have decided to spend a long time in the Canary Islands, you will need a residency permit.
The short-stay visa only allows you to reside in Spain for up to 90 days at a time out of every 180 days, or a maximum of around 180 days a year. This is fine if your trips will be no longer than three months at a time, no more than twice a year.