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Everything you need to know before buying real estate is included in our Spain Property Pack
If you are a foreigner thinking about buying residential property in the Canary Islands, you are joining a growing crowd: nearly 30% of all homes sold there now go to foreign buyers.
This guide walks you through everything you need to know about foreign property ownership in the Canary Islands as of the first half of 2026, including current housing prices (averaging around 3,300 euros per square meter), taxes, visas, and the step-by-step buying process.
We constantly update this blog post so you always have the freshest information available.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Canary Islands.
Insights
- Foreign buyers purchased about 26 homes per day in the Canary Islands during the first half of 2025, pushing property prices up by roughly 15% in just one year.
- Spain's Golden Visa program ended on April 3, 2025, so buying property in the Canary Islands no longer grants you automatic residency or a pathway to citizenship.
- The Canary Islands use IGIC (7%) instead of mainland Spain's VAT on new builds, and the transfer tax for resales sits at 6.5%, which is slightly lower than many mainland regions.
- Non-resident foreigners can typically borrow 60% to 70% of a property's value from Spanish banks, with mortgage rates currently ranging from about 3% to 4.5%.
- Nearly one in four properties sold in the Canary Islands goes to a non-resident foreigner, making this archipelago one of Spain's most internationally focused real estate markets.
- Average property prices in the Canary Islands reached about 3,300 euros per square meter in late 2025, meaning a typical 80-square-meter apartment now costs around 260,000 euros.
- Canary Islands property prices have grown roughly 47% over the past five years, far outpacing most other Spanish regions during the same period.
- Tourist rental regulations in the Canary Islands require registration and compliance at the municipal level, and many foreign buyers discover too late that their intended short-term rental use is restricted.
What can I legally buy and truly own as a foreigner in Canary Islands?
What property types can foreigners legally buy in Canary Islands right now?
In January 2026, foreigners can legally buy virtually any type of residential property in the Canary Islands, including apartments, townhouses, detached houses, villas, and rural homes known as fincas.
The main legal condition is not about what you can purchase but about making sure the property has clean title, valid building licenses, and no hidden debts attached to it.
Unlike some countries that restrict foreign ownership of land or coastal property, Spain places no nationality-based limits on buying homes in the Canary Islands, though some coastal or defense-related zones may require additional military authorization in rare cases.
The real complexity for foreign buyers in the Canary Islands lies in understanding what you can do with the property after purchase, especially if you plan to operate short-term tourist rentals, which are heavily regulated at the municipal level.
Finally, please note that our pack about the property market in Canary Islands is specifically tailored to foreigners.
Can I own land in my own name in Canary Islands right now?
Yes, foreigners can own land in their own name in the Canary Islands, including plots attached to houses, villas, and rural fincas, without needing any special corporate structure or local partner.
This applies to virtually all types of land, though buyers should be extra careful with rural properties because mismatches between the Land Registry, Catastro (cadastral database), and the physical reality on the ground are more common in these cases.
The practical warning for land purchases in the Canary Islands is that parts of rural homes may have been built without proper permits, and protected or agricultural land classifications can limit what you can legally do with the property even if you own it outright.
By the way, we cover everything there is to know about the land buying process in Canary Islands here.
As of 2026, what other key foreign-ownership rules or limits should I know in Canary Islands?
As of early 2026, there are no foreign-ownership quotas for apartments or condos in the Canary Islands, meaning buildings can be 100% foreign-owned without triggering any legal restriction.
Spain does not require foreign buyers to obtain government approval before purchasing, though you will need to get an NIE (foreigner identification number) to complete the transaction and register ownership.
The most notable recent regulatory change affecting the Canary Islands is the end of Spain's Golden Visa program on April 3, 2025, which means buying property no longer grants residency rights, though foreigners can still purchase without restriction.
The Canary Islands government has been exploring proposals to limit non-resident foreign purchases to address the local housing crisis, but as of the first half of 2026, no such restrictions have been enacted because they would conflict with EU law on freedom of capital movement.
What's the biggest ownership mistake foreigners make in Canary Islands right now?
The biggest ownership mistake foreigners make in the Canary Islands is assuming they can legally operate tourist rentals without checking local regulations, because many municipalities have strict registration requirements and some buildings prohibit short-term lets entirely in their community statutes.
If you buy a property planning to rent it on Airbnb and later discover it cannot be legally registered as a vacation rental, you may face fines, forced delisting, and a property that generates far less income than you projected.
Other classic pitfalls in the Canary Islands include skipping independent legal representation (instead relying on the seller's agent), failing to request a nota simple to verify title and liens, and buying rural properties without confirming that all structures have valid building permits.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Canary Islands?
Do I need a specific visa to buy property in Canary Islands right now?
No, you do not need a specific visa to buy property in the Canary Islands in January 2026, and foreigners can legally purchase real estate even while visiting on a standard tourist visa or with no Spanish visa at all.
The main administrative requirement that can slow down buyers without local residency is obtaining an NIE (Número de Identificación de Extranjero), which is Spain's foreigner identification number required for signing contracts, paying taxes, and registering ownership.
Yes, you need a local tax ID before buying property in the Canary Islands, and the NIE serves this purpose, so you should apply for it early in your buying process to avoid delays at the notary.
A typical document set for a foreign buyer in the Canary Islands includes your passport, NIE, proof of funds or mortgage pre-approval, and a Spanish bank account for handling payments, taxes, and ongoing utility bills.
Does buying property help me get residency and citizenship in Canary Islands in 2026?
As of early 2026, buying property does not automatically grant you residency or citizenship in Spain, and the real-estate-linked Golden Visa program was officially abolished on April 3, 2025.
Before the change, non-EU citizens could obtain Spanish residency by investing at least 500,000 euros in real estate, but this pathway is now closed to new applicants.
Alternative routes to Spanish residency include the non-lucrative visa (for those with sufficient passive income who will not work in Spain), the digital nomad visa (for remote workers), and standard work or family reunification visas, while citizenship generally requires ten years of legal residence.
Can I legally rent out property on my visa in Canary Islands right now?
Your visa status does not restrict your ability to rent out property you own in the Canary Islands, because rental rights attach to ownership, not to your immigration status.
You do not need to live in Spain to rent out your property, and many foreign owners manage rentals remotely by appointing a local property manager and a fiscal representative for tax compliance.
The key detail foreigners must know is that short-term tourist rentals (viviendas vacacionales) in the Canary Islands require registration and compliance with regional and municipal regulations, and operating without proper registration can result in significant fines.
We cover everything there is to know about buying and renting out in Canary Islands here.
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How does the buying process actually work step-by-step in Canary Islands?
What are the exact steps to buy property in Canary Islands right now?
The standard sequence to buy property in the Canary Islands is: find a property, negotiate terms, obtain your NIE, pay a reservation fee (optional), conduct due diligence (nota simple, Catastro check, community debts), sign a deposit contract (contrato de arras), sign the public deed (escritura) at the notary, pay taxes, and register ownership at the Land Registry.
You do not need to be physically present for most steps because Spain allows you to grant a power of attorney (poder) to a lawyer or representative who can sign documents on your behalf, though some banks may require your presence for mortgage signing.
The step that typically makes the deal legally binding in the Canary Islands is signing the contrato de arras (earnest money contract), where the buyer usually deposits around 10% of the purchase price and both parties commit to the transaction with financial penalties for backing out.
The typical end-to-end timeline from accepted offer to final registration in the Canary Islands is 4 to 12 weeks, depending on how quickly you obtain your NIE, complete due diligence, and schedule the notary appointment.
We have a document entirely dedicated to the whole buying process our pack about properties in Canary Islands.
Is it mandatory to get a lawyer or a notary to buy a property in Canary Islands right now?
A notary is effectively mandatory in the Canary Islands because property purchases are completed through a public deed (escritura pública) that must be signed before a notary to be registrable and fully enforceable, while hiring a lawyer is not legally required but strongly recommended for foreign buyers.
The key difference is that the notary verifies identities, witnesses signatures, and ensures the deed meets formal legal requirements, while a lawyer actively protects your interests by conducting due diligence, reviewing contracts, and catching problems before you sign.
One key item to include in your lawyer's scope for a Canary Islands property purchase is a full check of the property's registration status, outstanding debts (including community fees and unpaid IBI), building permits, and any restrictions on use like tourist rental prohibitions.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What checks should I run so I don't buy a problem property in Canary Islands?
How do I verify title and ownership history in Canary Islands right now?
The official registry to verify title and ownership history in the Canary Islands is Spain's Land Registry (Registro de la Propiedad), which you can access through the Registradores portal to request documentation.
The key document to request is a nota simple, which is a title extract showing the registered owner, the legal description of the property, and any charges, liens, or restrictions currently recorded against it.
A realistic look-back period for ownership history checks in the Canary Islands is the last 10 to 15 years, which helps identify any inheritance disputes, previous foreclosures, or transfers that might indicate legal complications.
One clear red flag that should stop or pause your purchase in the Canary Islands is discovering an active embargo (court seizure), an unresolved inheritance, or multiple owners listed without clarity on who has authority to sell.
You will find here the list of classic mistakes people make when buying a property in Canary Islands.
How do I confirm there are no liens in Canary Islands right now?
The standard way to confirm there are no liens or encumbrances on a property in the Canary Islands is to request a recent nota simple from the Land Registry, which lists all registered mortgages, embargoes, usufruct rights, and other charges against the property.
One common type of lien buyers should specifically ask about in the Canary Islands is unpaid community fees in apartment buildings, because under Spanish law, the new owner inherits liability for the previous owner's debts to the community for the current and prior three years.
The best written proof of lien status in the Canary Islands is a nota simple issued within the last 15 days combined with a certificate from the community administrator confirming the property is current on all fees and special assessments.
How do I check zoning and permitted use in Canary Islands right now?
The authority to check zoning and permitted use in the Canary Islands is the local town hall (Ayuntamiento), specifically the urban planning department (urbanismo), combined with the Catastro database for basic land classification.
The document that confirms zoning classification in the Canary Islands is the cedula urbanística or a certificate from the planning department, which states whether the property is urban, rural, protected, or subject to special restrictions.
A common zoning pitfall foreign buyers frequently miss in the Canary Islands is purchasing a charming rural finca without realizing part of it was built on protected land or without a proper building license, which can prevent renovations, expansions, or even legal sale in the future.
Buying real estate in Canary Islands can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Canary Islands, and on what terms?
Do banks lend to foreigners for homes in Canary Islands in 2026?
As of early 2026, yes, Spanish banks actively lend to foreigners purchasing homes in the Canary Islands, including both EU and non-EU citizens, though the terms differ based on residency status.
Non-resident foreigners in the Canary Islands typically receive loan-to-value (LTV) ratios of 60% to 70%, meaning you will need a down payment of at least 30% to 40% of the purchase price, while residents can often borrow up to 80%.
The most common eligibility requirement for foreigners seeking a mortgage in the Canary Islands is demonstrating stable, verifiable income (typically through payslips, tax returns, and bank statements), with banks generally requiring your total monthly debt payments not to exceed 30% to 35% of your net income.
You can also read our latest update about mortgage and interest rates in Spain.
Which banks are most foreigner-friendly in Canary Islands in 2026?
As of early 2026, the most foreigner-friendly banks for mortgages in the Canary Islands include Santander, BBVA, and CaixaBank, all of which have established processes for international buyers and English-speaking staff in key branches.
What makes these banks more foreigner-friendly in the Canary Islands is their standardized non-resident mortgage products, willingness to accept foreign income documentation, and experience working with buyers who may not speak Spanish fluently.
These banks do lend to non-residents (buyers without Spanish residency) in the Canary Islands, though the terms are typically more conservative with lower LTV ratios and sometimes slightly higher interest rates compared to what residents receive.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Canary Islands.
What mortgage rates are foreigners offered in Canary Islands in 2026?
As of early 2026, foreigners purchasing property in the Canary Islands can expect mortgage interest rates in the range of 3.0% to 4.5%, depending on whether you choose a fixed or variable rate and the strength of your financial profile.
Fixed-rate mortgages in the Canary Islands typically carry rates at the higher end of this range (around 3.5% to 4.5%) but offer payment stability, while variable-rate mortgages linked to the Euribor start lower (around 2.9% to 3.5%) but can fluctuate over time.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Canary Islands?
What are the total closing costs as a percent in Canary Islands in 2026?
The typical total closing cost in the Canary Islands in 2026 ranges from about 8% to 11% of the purchase price, depending on whether you buy a resale property or a new build and whether you take out a mortgage.
For resale properties in the Canary Islands, expect closing costs of roughly 8% to 9%, while new builds typically run 9% to 11% due to the combination of IGIC (the Canary Islands' equivalent of VAT) and stamp duty (AJD).
The specific fee categories that make up total closing costs in the Canary Islands include purchase taxes (ITP or IGIC plus AJD), notary fees (roughly 0.5% to 1%), Land Registry fees (roughly 0.5% to 1%), and legal fees if you hire a lawyer (typically 1% to 1.5%).
The single biggest contributor to closing costs in the Canary Islands is the purchase tax: ITP at 6.5% for resale properties, or IGIC at 7% plus AJD at 0.75% for new builds from developers.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Canary Islands.
What annual property tax should I budget in Canary Islands in 2026?
As of early 2026, the typical annual property tax (IBI) for a standard home in the Canary Islands ranges from about 300 to 1,500 euros per year (roughly 330 to 1,650 USD or 310 to 1,550 EUR), depending on the property's cadastral value and the municipality's tax rate.
IBI in the Canary Islands is assessed as a percentage of the property's cadastral value (valor catastral), which is typically much lower than the market price, and the rate varies by municipality, generally ranging from 0.4% to 1.1% of that cadastral value.
How is rental income taxed for foreigners in Canary Islands in 2026?
As of early 2026, the effective tax rate on rental income for foreigners in the Canary Islands is 19% for EU/EEA residents (on net income after deductible expenses) or 24% for non-EU residents (often on gross income with limited or no deductions allowed).
Foreign property owners in the Canary Islands must file quarterly non-resident income tax returns (Modelo 210) declaring their rental income, and many choose to appoint a Spanish fiscal representative to handle these filings and ensure compliance.
What insurance is common and how much in Canary Islands in 2026?
As of early 2026, typical annual home insurance premiums in the Canary Islands range from about 250 to 1,200 euros per year (roughly 275 to 1,320 USD or 260 to 1,240 EUR), depending on the property type, location, and coverage level.
The most common type of property insurance coverage that owners carry in the Canary Islands is a comprehensive home policy (seguro del hogar) that includes building structure, contents, third-party liability, and coverage for water damage and theft.
The biggest factor that makes insurance premiums higher or lower in the Canary Islands is whether you plan to use the property for tourist rentals, because short-term rental use increases liability exposure and typically requires expanded coverage or a specific landlord policy.
Get the full checklist for your due diligence in Canary Islands
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Canary Islands, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Gobierno de España (MIVAU) | Official Spanish government ministry announcement with exact effective dates. | We used it to confirm the Golden Visa program ended on April 3, 2025. We relied on this source for precise regulatory cutoff dates affecting foreign buyers. |
| BOE Decreto Legislativo 1/2009 | Official consolidated legal text setting Canary Islands tax rates. | We used it to quote the 6.5% ITP rate for resales and the 0.75% AJD rate. We also identified reduced rates that may apply in specific cases. |
| Agencia Tributaria Canaria | The regional tax authority that administers these taxes locally. | We used it to explain which tax applies to resales versus new builds. We aligned our terminology with official forms and payment steps. |
| Canary Islands IGIC Tables | Published by the regional tax authority with current rates as of 2025. | We used it to confirm that IGIC (not mainland VAT) applies at 7% for new builds. We established this as the baseline purchase tax in the Canary Islands. |
| Banco de España | Spain's central bank publishing official interest rate statistics. | We used it to anchor mortgage rate estimates to official data. We based our foreigner rate range on the TEDR for new housing loans. |
| Colegio de Registradores | Official portal of Spain's Land Registrars who issue title extracts. | We used it to explain the nota simple and what it contains. We emphasized this as the safest way to verify ownership and liens in the Canary Islands. |
| Sede Electrónica del Catastro | Official cadastral database for property identifiers and values. | We used it to explain how to cross-check a property's cadastral reference. We positioned it as a key second source to triangulate registry data. |
| Ministerio de Inclusión (EX-15) | Official government form for requesting an NIE number. | We used it to support the practical point that foreigners need an NIE. We grounded our guidance in official paperwork rather than informal sources. |
| Gobierno de Canarias (Turismo) | Official regional government page on vacation rental regulations. | We used it to explain that tourist rental rules often determine what you can do with your property. We highlighted municipality-level compliance requirements. |
| ISTAC (Instituto Canario de Estadística) | Official Canary Islands statistics institute publishing municipal IBI rates. | We used it to ground property tax budgeting in actual municipal rates. We explained why IBI varies between municipalities and islands. |
| INE (Instituto Nacional de Estadística) | Spain's national statistics office publishing official price indices. | We used it to provide macro context for price momentum in the Canary Islands. We avoided relying on asking prices alone as the main benchmark. |
| Idealista | Spain's largest property portal with extensive market data. | We used their price indices to track recent market trends in the Canary Islands. We cross-referenced their data with official sources for accuracy. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.