What is the property tax in the Canary Islands?

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.



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As an example, the Canaries are not part of the European VAT but instead they have a local consumer tax with a standard rate of 7% (much lower than the minimum 15% rate set by EU to each of their member states), besides this, without a doubt, the principal attraction for investors is that the region has by far the ...

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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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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!

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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.

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Land Tax/ Impuesto de Bienes Inmuebles (IBI) The exact annual IBI tax for a property depends on it's size, which Municipality it is in and the property type. Rates can vary from 0.4% to 1.1%.

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Average wages in the Canary Islands reach 22,466 euros; the hotel and catering industry maintains the lowest salaries. Despite a 3.9% raise in wages in 2021 to 22,466.2 euros, the Canary Islands remain at the bottom of the salary scale in Spain, only ahead of Extremadura.

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For non-residents of the EU, the tax rate is 24%. Example: If the cadastral value of the property is 200.000 Euros and the taxable base is 2.200 Euro (1.1% as mentioned above).

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  • Electricity. Set up as a direct debit. ...
  • Water. Water is set up as a direct debit and usually paid every two months from your bank account. ...
  • Community fees. ...
  • IBI – Impuesto sobre Bienes Inmuebles (Council tax) ...
  • Basura (garbage and sewage) ...
  • Insurance.


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The Bank of Spain predicts a return of 10% for the Spanish real estate market in 2023. In layperson's terms, buying property in Spain is considered a safe investment. It's highly unlikely that you'll lose any money if you take the plunge – provided you seek expert guidance and support throughout the buying process.

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The pro and cons of moving to the different Canary Islands include Tenerife, Gran Canaria, Fuerteventura, and Lanzarote.
  • Tenerife – Best for everyone including British Expats. ...
  • Fuerteventura – Best for beaches and great value properties. ...
  • Gran Canaria – Best for laid-back holiday homes.


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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.

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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.

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