Tenerife, the largest of Spain’s Canary Islands, is quickly becoming one of the most attractive destinations for real estate investment in Europe. With its year-round mild climate, political stability, and growing tourism industry, Tenerife offers an ideal environment for investors looking for long-term capital growth, rental yields, or a lifestyle investment.
A Booming Property Market
Over the past decade, Tenerife’s real estate market has seen steady growth. Coastal regions like Costa Adeje, Los Cristianos, and El Médano are experiencing strong demand from both foreign and local buyers. Properties near the ocean, with sea views or within resort developments, have shown exceptional resilience in value—even during global economic downturns.
With the rise of digital nomads and lifestyle investors, there’s a growing trend toward buying villas, apartments, and penthouses for short-term rental or part-time residence. Holiday rentals generate stable income throughout the year due to Tenerife’s 12-month tourism season, making this island uniquely profitable compared to seasonal markets on the mainland.
Tax Benefits and Stability
As a part of Spain and the European Union, Tenerife offers legal and political security for international investors. One of the key advantages is the low indirect tax rate (IGIC) of 7%, compared to Spain’s mainland VAT of 21%. This creates an immediate cost-saving when buying new properties.
Moreover, the ZEC Zone (Zona Especial Canaria) offers corporate tax rates as low as 4% for qualifying companies, attracting investment in real estate development, hospitality, and tourism infrastructure.
Types of Investments
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Luxury Villas: Popular in Costa Adeje and La Caleta; ideal for private use or high-end holiday rentals.
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Apartments & Penthouses: Centrally located, easier to manage as short-term rentals.
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Land & Development Projects: Increasing interest in sustainable tourism and boutique hotels.
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Commercial Real Estate: Hotels, wellness centers, coworking hubs—perfect for entrepreneurial investors.
Expert Assistance Makes the Difference
Foreigners can buy property in Tenerife with no restrictions, but working with a local expert is key. From due diligence to tax optimization and property management, our team ensures a smooth and secure investment process. Whether you’re looking for a second home or a high-yield asset, Tenerife offers a rare mix of beauty, stability, and return on investment.
