Lanzarote

Lanzarote is the most northern and eastern of the Canary Islands, an autonomous community of Spain. Clean sea air, consistent sunshine and accessibility highlight the real attraction of the Canary Islands as a second home destination. Located off the west coast of Africa, this Lanzarote offers all year warm weather, a volcanic landscape and sandy beaches around which there are resorts and a thriving tourist industry. There were over 3 million visitors to the Island in 2019, with British being the largest group from overseas. The island is popular with German and Irish holidaymakers too. Given there is no seasonality, there is the opportunity to earn steady rental income although investors need to check license status with their agent. Building regulations are in place to protect the Island’s character, including property height restrictions and white exterior requirements.

In addition to tourists, the island is home to over 45,000 foreign expats – including British, Moroccans, Italians, Germans & Colombians, amongst others. The cosmopolitan island has appeal to families and also to a 30 something age group seeking lower cost of living and improved lifestyle.

There are four areas in Lanzarote that attract the most second homeowners. The largest is Puerto del Carmen, a tourist resort since 1963, close to the airport with beaches, dive centres, bars, restaurants, golf course. A walk from Puerto del Carmen, Puerto Calero is one of the most prestigious sailing destinations and the first marina in Lanzarote, quiet and upmarket. Costa Teguise, on the east coast for its sandy beaches, water sports, market, live music and relaxation. Finally Playa Blanca, on the southern tip, is the islands second largest tourist area and has quickly become its most high-end destination.

Between 1996 and 2007 property prices across the Canary Islands rose 190%, then came the big crash and it wasn’t until 2016 that there was a steady rise again. Like many locations, Lanzarote saw the property market bounce back post-pandemic, particularly in the higher end. Prices have yet to reach their previous peak.

You will need an NIE, Spanish tax number, to buy property in Lanzarote. If you are buying a new or off plan property you wll pay IVA (Spanish VAT) which is 7% in the Canary Islands (10% mainland Spain) and purchase tax of 1% (1.5% mainland). Resale property purchase tax (ITP) is 6.5% in the Canary Islands, but do check in case the figure has changed. Other charges include Notary’s fee and property registry fee.

Apartments usually have community fees, as may any resort property, or residential complex. All property owners pay IBI, similar to Council tax. If you are non-resident you will have to pay non-resident’s income tax, based on the rateable value of your property. Your agent can advise.

Get in touch with us and we can connect you to our expert partners in Lanzarote.

Did you know ... over 200 volcanoes make up the unique landscape of Lanzarote, some millions of years old.

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