Tenerife

Tenerife, ‘the island of eternal spring’, is the largest and most visited 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. Well serviced by flights and ferries, with an average temperature of 23’C, Tenerife has some excellent beaches and mountain topography allowing spectacular sea views from even inland. Both expat living and year round tourism continues to thrive.

According to official INE statistics, 2022 saw record figures for foreigners buying homes in the Canary Islands, accounting for nearly 50% of all property transactions completing in the first half of the year (6,456 homes of 13,291 total). This includes both foreign residents and non-residents. According to the General Council of Notaries, Germans accounted for 25% of non-resident purchases, with British representing 12%. Of foreign resident buyers, the largest group were Italians (25%).

Other popular southern locations include; Playa del Duque, Puerto Colon, Playa Las Americas and Los Christianos. All of these locations merge into one sprawling urbanisation that hugs the south western coastline and can be walked end to end along a vast promenade, totalling an impressive 9km. Passing shops, restaurants, hotels and beaches, the walk is almost entirely step free and makes the area very accessible for all ages and abilities.

The South of Tenerife is sunnier, dryer and warmer than the north, although there are microclimates on the island – and compared to other, colder winter destinations, the weather is better generally, wherever you are. It’s coldest in the higher altitudes inland, and furthest from amenities.

To the north, you find Puerto de la Cruz, with its old harbour, historic centre and dark sandy beaches. It is perhaps one of the first, official tourist destinations. To the north east lies the capital, Santa Cruz de Tenerife, popular amongst expats, and quite different to the tourist resorts of the South.

Our award-winning partner agency on the island tells us that while there are more cash buyers, the main issue has been supply of property to the market. Portfolios of property for sale have dropped over recent years and there are restrictions on new build property. They determine that as things stand, 41% of buyers (ie. foreign buyers) are interested in less than 10% of Tenerife properties available (holiday home criteria in south and south west). This means well priced and well-presented property in desirable locations has been driven upwards.

The property purchase tax on resale homes is 6.5%. The Canary Islands Special Zone offers an attractive tax regime, including a 4% corporate tax and lower sales tax than mainland Spain. Get in touch with us and we can connect you to our expert partners in Tenerife.

Did you know … the Tenerife Government has given the green light for construction of a motor racing track in Atogo, Granadilla De Abona, with FIA and FIM approval.

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