Owning property in the Canary Islands
It goes without saying, the main reason everyone falls in love with the Canary Islands is the year-round sunshine. Then there’s the Mediterranean lifestyle – the food, the laidback living, the socialising, the friendliness, the list goes on!
It also makes good sense financially to invest in property in the Canary Islands. All the fundamentals add up to make the Canary Islands one of the safest if not THE safest place to invest in property abroad – whether it be for the purpose of owning a holiday home or to use it as a permanent residence.
- Close proximity to all major European airports
- Modern infrastructure
- EU membership
- Strong tourist economy
- Constant demand for property
- Open banking system
All these factors have contributed to increasing the average annual capital appreciation of property in the Canary Islands to over 10% in the past ten years.
What do you plan on using your property for?
So you’ve made the decision – you want to buy a property abroad. Now you need to decide exactly what you want to use this property for search begins. Here are some options with advice on what features you should be looking out for in your property and guidance on the legalities and costs of owning such property.
Great! You want to relocate to the Canary Islands and live the Spanish lifestyle. Or you want to relocate within the Canary Islands. We recognise this is a huge step for you and you don’t need to worry, Woods the Estate Agents will be with you all the way.
When searching for your new home in Tenerife or any other of the Canary Islands, your primary concerns will be the size and layout of living space, number of bedrooms and bathrooms, parking, proximity to amenities such as schools, supermarkets, your place of work, etc. Luckily for you, it doesn’t take much time at all to drive from one end of an island to the other and traffic doesn’t cause too much of a concern even during rush hour.
There is a diverse choice of building styles throughout the Canary Islands. We’ll try to give a brief explanation of each below:
- Apartment – Studio, Duplex, 1 bed, 2 bed, 3 bed or more. These are generally found on complexes which require all owners to pay a community fee (Usually around €50 a month). This helps pay for maintenance of public areas. The advantages of owning an apartment are that maintenance costs and effort is low due to them generally being smaller in size; complexes are usually great places to live as each one has a strong community feel to it.
- Villas - Depending on the location, villas can either be rural and remote or can be within close proximity of other villas and form part of a community. A villa in the Canary Islands is the quintessential home for anyone seeking a more exclusive way of life. There is a diverse range of villas available for Sale or Rent in Tenerife and the rest of the Canary Islands – all offering unique styles and amenities.
- Fincas – or small holdings. These properties are usually found more inland and offer a very unique, typically Spanish way of living. They are usually found more inland and include a large detached property with plenty of land.
The Canary Islands offer great opportunities for property investors looking to make a good return on investments with minimum capital outlay. Bank repossessions and distressed properties offer good opportunities to buy properties which are sometimes listed for sale below their valued price. The best option is always to buy “off-plan” properties which are at their development stage. 20-30% is expected to be paid in stages during the construction process and upon completion; the buyer will then have the choice of selling the property on or taking the title deeds and renting it out.
If you are fortunate enough to be able to take holidays several times a year and have the spare capital to invest in a property, owning a holiday home may just prove to be the more financially viable option. You may also be interested in using your new holiday home as a second source of income by entering it in to a managed rental scheme or renting it to family and friends.
PLEASE BE AWARE. Due to new laws introduced by the Spanish Government, property owners may not privately let their properties for holiday purposes. Only if the property itself or the complex it is on has a tourist licence, may it be used a holiday rental and may only be rented out using the site’s sole agent. Residential or Tourist properties may both be rented out on a short term or long term basis (minimum of 3 months).