🏡 Buying a Property in Tenerife: The Real Costs Explained (Updated 2026)

A clear, friendly guide from Spencer Roberts Estates

Buying a home in Tenerife — whether a holiday apartment, an investment property, or your future island base — is an exciting step. But like anywhere in Spain, the purchase price isn’t the only cost to consider. Understanding the true costs of buying property in the Canary Islands helps you plan confidently and avoid surprises.

Here’s your updated 2026 breakdown, tailored specifically to Tenerife.

💶 How Much Should You Budget?

In Tenerife, buyers should plan for approximately 10–12% of the purchase price in taxes and fees.
This is in addition to any mortgage deposit.

If you’re financing the purchase, banks typically lend up to 70% for non‑residents and up to 80% for residents.
If you’re buying without a mortgage, you still pay all standard taxes and notary/registry fees.

📑 The Main Costs When Buying a Property in Tenerife

1️⃣ Notary Fees

Every property purchase in Spain must be formalised before a notary.

• Typical cost in Tenerife: €600–€1,000
• Regulated by law (no price shopping needed)
• Depends on property price and document complexity

2️⃣ Land Registry Fees

After signing at the notary, the property must be registered in the Registro de la Propiedad.

• Typical cost: €400–€650
• Also regulated by law

3️⃣ Taxes When Buying a Property in Tenerife

The Canary Islands have their own tax system, separate from mainland Spain.
This is where Tenerife buyers benefit — taxes here are lower than in most of Spain.

🆕 If you’re buying a NEW property (first transfer)

You will pay:

• IGIC (Canary Islands VAT): 7%
• AJD (Stamp Duty): 0.75%–1% depending on the type of deed

Example:
A €250,000 new-build property → IGIC €17,500 + AJD approx. €2,000–€2,500

🏠 If you’re buying a RESALE property (second transfer)

You will pay:

• ITP (Property Transfer Tax): 6.5%
  (This is the fixed rate for the Canary Islands — no sliding scale like mainland Spain.)

Example:
A €250,000 resale property → ITP €16,250

4️⃣ Lawyer / Legal Advisor

A lawyer handles:

• Contract checks
• Tax settlements
• NIE guidance
• Utility changes
• Bank coordination
• Notary preparation

Typical cost: €800–€1,500 depending on the service level.
For international buyers, this is one of the most valuable investments.

🏦 Additional Costs If You’re Taking Out a Mortgage

5️⃣ Property Valuation (Tasación)

Required by all banks.

• Typical cost in Tenerife: €300–€600
• Valid for 6 months
• Some banks cover this cost, but not all

Banks usually lend:

• Up to 70% for non‑residents
• Up to 80% for residents

6️⃣ Mortgage Opening Fee (Comisión de Apertura)

Not all banks charge this, but when they do:

• Typically 0%–1% of the loan amount
• Some banks require home or life insurance as part of the mortgage package

🧭 Summary of Costs When Buying in Tenerife (2026)

Buying in Tenerife With Spencer Roberts Estates

We guide buyers through every step — from NIEs and bank accounts to valuations, contracts, and notary day.
Our goal is simple: make your Tenerife property purchase smooth, transparent, and enjoyable.