There are two Tenerifes, and banks read them differently
The island holds two markets that barely overlap. The metropolitan area — Santa Cruz and La Laguna — is year-round housing: salaries, a university, public administration, and buyers who almost always borrow. The southern resort belt — Arona, Adeje — runs on visitors: second homes, foreign buyers and a fair amount of cash purchase.
That difference shapes the first conversation with a bank. In the north it is about income and stability. In the south it is about how much of the value gets lent, where the money comes from and, if you do not live in Spain, how long each step takes. Sending a southern application with northern arguments is the most reliable way to double the wait.
What you will actually pay in tax
The Canary Islands are outside Spanish VAT, which surprises almost every buyer who has looked at the mainland first. New build here is not charged VAT at 10% but IGIC at 7%, with stamp duty of 1% on top.
Resale property pays transfer tax at 6.5%. Four reduced rates exist and none of them apply automatically — they depend on who is buying and have to be claimed with their conditions met. Our Canary Islands tax page sets them out one by one, each with the article of the law beside it.
Buying from abroad
The mortgage is rarely what holds things up. It is the NIE, getting a Spanish bank account open in time, a power of attorney if you cannot fly over for the signing, and above all evidencing where your funds come from — which takes longer than anyone plans for when the money arrives from outside the EU.
Banks lend a smaller share of the value to non-residents than to residents, and exactly how much depends on the bank and on your profile. Get that confirmed in writing before you sign a reservation, not after.
Areas we cover
Santa Cruz and La Laguna. The metropolitan area, and the island's main-home market. Purchases here turn on affordability and nearly always involve a mortgage.
Los Cristianos and Arona. The established south: very international, heavily second-home, and where non-resident buyers show up most often.
Costa Adeje. The upper end of the southern market, with new build and resort developments. New build means IGIC and stamp duty rather than transfer tax.
Puerto de la Cruz and the north. A different climate and a different market: less seasonality, more year-round housing, and a lot of older building stock worth checking before the valuer does.
A free feasibility study before you reserve anything
Applications prepared for variable pay, seasonal income and self-employment
The whole purchase run remotely if you cannot be here
Frequently asked questions
Can I get a Spanish mortgage in Tenerife if I am not resident?
Yes. Banks lend a smaller share of the value to non-residents than to residents, and the whole process can be run remotely. What matters most is a well-prepared application and being able to evidence the origin of your funds.
Why is there no VAT on new build here?
The Canary Islands sit outside Spanish VAT and use their own indirect tax, IGIC, which is 7% on new homes instead of 10% VAT. Stamp duty on that purchase is 1%.
Is the north or the south better value?
They are different markets rather than better and worse. The north is year-round housing with steadier demand; the south is resort property with more foreign buyers and more seasonality. What suits you depends on whether you will live in it, let it or both.
Do you work across the whole island?
Yes, in the metropolitan area and in the south, and across the rest of the Canary Islands. Our network of partner estate agencies in the Canaries means many purchases arrive with the property already chosen.