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Buying property in Tenerife as a foreigner: UK guide
The contents of this article is for informational purposes only and does not constitute legal or tax advice. Decisions related to tax should be made after thorough research, consultation and verification from a qualified financial and legal advisor.
Dreaming of having your own holiday home on the beautiful island of Tenerife? Perhaps you want to buy a property for holiday lets, or perhaps even move there permanently from the UK.
It’s easy to see why so many Brits are drawn to Tenerife, thanks to its sunny weather, beautiful natural landscapes and year-round attractions for tourists.
But how easy is buying property in Tenerife for foreigners, and UK citizens in particular?
We’ll cover everything you need to know here in this essential guide, including the steps to purchase a home, info on fees and costs, average property prices and the pitfalls to avoid.
With our help, you’ll soon be ready to start your search for your dream Canary Islands property.
And if you’re looking for ways to save money on currency exchange when buying property in Spain, check out the money services provider Wise. You can send large transfers with Wise for low fees* and mid-market exchange rates - making it ideal if you’re sending a secure international transfer.
Buying property in Tenerife as a foreigner - a step-by-step guide
Before you start your house hunt, it can be useful to know a little about how the process of buying property works in Tenerife. In essence, it’s the same as buying property elsewhere in Spain.
Here’s a quick overview of the steps involved:
1. Get your finances in order
Before you do anything, it’s a smart idea to get your finances sorted. This means setting a budget, getting a mortgage offer (approval in principle) and getting all your paperwork together.
You might also want to open a Spanish bank account, or at least make sure you have an international account in euros.
2. Get your NIE
In order to buy property anywhere in Spain as a foreigner, including Tenerife and the Canaries, you’ll need an NIE. This stands for *Número de Identificación de Extranjeros, *and it’s a Spanish tax ID number.
You can get this by visiting a Spanish police station and presenting your passport, or you can apply at a Spanish Consulate if you’re still in the UK.
3. Find a property and arrange viewings
Now it’s time to start searching for your dream home. You can use online property portals and/or local estate agents to find properties. We’ll run through some tips later on how and where to start your search.
If you’ve found somewhere you like, arrange a viewing as soon as you can, and start researching the area in the meantime.
4. Ask to see the Nota Simple
If you’re serious about a property and ready to make an offer, it’s recommended to first ask to see the Nota Simple. This is a crucial legal document which outlines the key details of the property, such as:¹
- Details of ownership
- Any outstanding debts on the property
- Boundaries of the property and land
- Designated use of the property
- Rights on the property held by others (i.e. right of way)
- Community costs (if any) the owner of the property is liable for.
You can get a copy of the Nota Simple at the local property title registry, or online at the *Registores *website.
Always cross-check the details of the Nota Simple with the actual details of the actual property, to make sure there are no discrepancies. If there are any, these will need to be resolved before the sale can go through.
5. Get a survey
Just before you make an offer, you might want to get a building survey carried out. This involves hiring a surveyor to check the property for structural or other issues.
If the survey flags anything up, you may be able to negotiate on price when putting in your offer.
It’s important that the surveyor also checks details such as the size and boundaries of the property against the information recorded on the Nota Simple.
6. Appoint a solicitor
While it’s not mandatory, it’s a good idea to find and appoint a property lawyer. They will check over and translate all documents and contracts, as well as carrying out due diligence on the transaction.
A personal recommendation is a good way to find a solicitor, but you can also find a list of English-speaking property solicitors on the UK Government website.
Whoever you appoint, make sure they are registered with the local bar association Colegio de Abogados.
7. Make an offer
The next important step is to submit a competitive offer to the estate agent, or to the buyer directly. You can negotiate, just like in other countries. Once an agreement is reached, a notary will summarise the offer in writing.
8. Sign the preliminary agreement (contrato privado de compraventa)
If your offer is accepted, the next step is for both parties to sign the preliminary agreement. In Spain, this is known as the contrato privado de compraventa. You’ll also arrange a transfer for the deposit, which is usually around 10% of the purchase price.
At this stage, you might want to contact your mortgage provider to finalise the financing for your purchase.
9. Sign the contract of sale (escritura de compraventa)
This is the final crucial piece of paperwork, and it must be formally signed in the presence of a notary. You’ll also need to have your solicitor with you in the notary office (or arrange for power of attorney to be provided).
The title deed will be transferred to your name and you’ll arrange a transfer for the remaining balance. Read more on the best UK banks for sending money abroad.
After all that’s done, you’ll get the keys to your new home.
Can you get a mortgage from a Tenerife bank as a non-resident?
Unless you have the cash upfront, you’re likely to need a mortgage to finance your property purchase in Tenerife. UK banks aren’t likely to offer funds for overseas purchases, so you might need to try a local mortgage provider.
Tenerife’s banking market is mainly populated with national banks such as Santander, BBVA and Caixabank. However, there is also a local Canaries bank called Cajasiete which may be another option to try.
The good news is that Spanish banks do offer mortgages to foreign citizens. However, you’re likely to get a lower loan-to-value (LTV) rate than local residents, so you may only be able to borrow around 60% to 70% of the property’s value rather than around 80%. This means you’ll need a larger deposit.²
It’s a good idea to start shopping around for mortgages before starting your property search in earnest. You might want to use a broker, who can help you find the right mortgage for you. Simply having someone on your side who speaks Spanish and really understands the system can pay dividends.
Taxes and fees for owning property in Tenerife
Alongside the property price, you also need to budget for the fees and taxes involved in your Tenerife property purchase.
Here are the essential costs you need to know about:
| Tax/fee name | Rate/fee |
|---|---|
| Property transfer tax (Impuesto de Transmisiones Patrimoniales or ITP) | 6.5%³ |
| VAT - applies to new build properties instead of ITP | 7%³ |
| Notary and registration fees | Approx €1,500 to €3,500 EUR⁴ |
| Legal fees | Varies |
| IBI (Impuesto sobre Bienes Inmuebles) property ownership tax - annual | Varies based on cadastral value of the property and local tax rate ³ |
| Refuse collection tax (basura) | Around €10 EUR a month⁵ |
| Income tax for non residents (Impuesto sobre la Renta de No Residentes or IRNR) | Up to 24% for non-EU residents - levied on rental income within Spain, whether or not it is let out³ |
| Wealth tax (annual) | Varies based on property value, only charged on values above €700,000 EUR³ |
What’s the property market like in Tenerife?
Property prices in Tenerife have risen considerably over the last few years. In fact, in some areas such as the already-pricey municipality of Adeje, house prices have rocketed by 79% since 2020.⁵
The increases can be seen across the island, particularly in the popular resorts of Los Cristianos and Playa de Las Americas in the south.
This boom has been driven by a combination of high demand from overseas buyers and a short supply of homes, while demand for rentals and holiday lets remains high.
While this means that it may be harder to snap up a bargain, it could mean that any property you do buy may bring in solid rental returns. Just make sure to check out the tax situation first, as taxes on non-resident rental income can be very high in the Canaries and across Spain.
Can foreigners buy property in Tenerife?
Yes, foreigners can buy property in Tenerife. As long as you have your NIE and can finance the purchase, you shouldn’t face any restrictions as a buyer from the UK - although be aware that you may find processes related to mortgages and legal steps a little more complicated than EU citizens.
You should also be aware that the Canary Islands has certain rules when it comes to properties being used for holiday rentals, and there may be other changes to local tourism laws on the horizon.
The government there is attempting to address problems related to overtourism, and there have been attempts in the past to ban or limit foreigners from buying properties on the islands.⁶
At the moment, owners of residential buildings need to get approval from at least 60% of their neighbours in order to use a property for short-term holiday lets.⁷
There are also proposals under discussion which, if made into law, could bring the following changes:
- Restrict new builds from being used for holiday lets for at least 10 years⁸
- Property owners may no longer be allowed to let their properties independently - they may instead be required to operate under a tourist management company.⁹
- A 100% property tax on non EU-buyers
So if you’re planning to buy a holiday let in Tenerife, it’s a good idea to keep a close eye on developments.
Can you buy property in Tenerife and get residency?
No, there’s no direct route to residency in Tenerife if you buy property there.
Spain used to have a Golden Visa program, which granted residency to non-EU nationals investing a certain sum in real estate - but this has now been scrapped.
How much are the property prices in Tenerife?
Now we come to that crucial question - how much is property in Tenerife? This is essential to know, as it helps you narrow down your search based on your budget, and work out which areas to focus on.
Here’s a quick look at current property prices per square metre for some of the most popular parts of the island, as of July 2025:⁵
| Location | Property price per square metre (EUR) |
|---|---|
| Adeje | €4,485 |
| Costa Adeje | €5,041 |
| Arona | €3,675 |
| Playa de las Américas | €5,873 |
| El Médano | €3,824 |
| Los Abrigos | €3,580 |
| Amarilla Golf | €3,320 |
Another thing to note when figuring out the price for property in Tenerife is that international transfers could get expensive, especially if the bank or provider adds a margin to the exchange rate to convert your pounds.
Consider checking out Wise to securely handle your large transfers with mid-market exchange rates and low, transparent fees*.
Where is the cheapest place to buy property in Tenerife?
The north of Tenerife is generally considered to be cheaper than the south, where some of the most popular resorts are located.
If you do have your heart set on the south, areas such as Amarilla Golf, Los Abrigos and Arona are among the cheapest.
How can you find a property in Tenerife?
The two main routes to find property to buy in Tenerife are local real estate agencies and online property websites.
Property agencies and agents in Tenerife
It isn’t mandatory to use a real estate agent to find your dream home in Tenerife, but their local knowledge and expertise could be valuable.
If you’re using an agent, look for one that is licensed and registered with either the Confederation Européenne de L’Immobilier(G.I.P.E.) or the Colegio de Agentes de la Propiedad Inmobiliaria (A.P.I.)
Property websites in Tenerife
The best way to get a head start on finding a place to buy in Tenerife is to look online. Great websites to find a house or apartment to buy include:
- Idealista
- Fotocasa
- Kyero
- ThinkSPAIN
- Tenerife Property Shop
- Canarian Properties Network
- Tenerife Estate Agents.
What are some of the pitfalls of buying property in Tenerife?
One of the main things to watch out for when buying property in Tenerife, or in any foreign region or country, are scams.
To avoid scams and other pitfalls, make sure to get local advice and recommendations for a broker. You should also check for membership of a professional body when working with any property experts, brokers or agents.
Other important things to remember include:
- Be cautious and do your homework (including meeting or speaking to the seller) before sending money or a deposit.
- Ensure that the seller has the legal right to sell the property.
- Always check the Note Simple against the actual property and its listing, and get any discrepancies rectified.
- Get an inspection/survey carried out if you have any concerns about the property
- Do your research on property taxes for non-residents and holiday lets, as these costs can really add up.
- Stay up to date with all the latest updates on Canary Islands tourism laws, as any changes could affect you and your purchase.
How do you choose the right property in Tenerife?
Your dream home in Tenerife will be the one that closest fits your search criteria. The most important factors will be location, the type of home and of course, how much you can afford to spend.
If you’re not already living there, it’s worth making a trip to the specific part of the island. You’ll want to check out the local area and view properties, making sure to pay attention to local transport links and amenities.
Condition of the property
It’s a good idea to do as much research as possible before committing to purchase a property.
A crucial step is checking the Note Simple and other land registry information to check the legal status of the property, as well as if any debts, charges, building conditions or other restrictions are registered against it.
You’ll also want to commission a building survey or inspection, which will flag up any major issues and give you a better idea of what you’re buying.
Moving into your Tenerife property
Before you can get the keys to your new home, you’ll have a few key tasks to run through.
These include taking out insurance, setting up your utilities and carrying out any energy efficiency renovations.
Insurance
It’s strongly recommended to take out a buildings insurance policy starting from your completion date. In fact, you might find it's a mandatory condition of your mortgage offer.
Setting up utilities
If you know when your completion date will be, it makes sense to get some essentials set up in advance of moving in.
A prime example is utilities, such as heating, power and water. Get these sorted as early as you can, and the moving process should be a little smoother.
Energy efficiency renovations
If you’ve bought an older property, you might want to make some energy efficiency improvements to it. For example, rewiring the electrics or upgrading the air conditioning system.
And that’s it - our comprehensive guide to buying property in Tenerife for foreigners.
We’ve covered all the essentials, so you should be all set to start your search and navigate the buying process in complete confidence.
And, if you want to save money while buying your new property in Tenerife, make sure to use the Wise account to send your international transfer. It’s not a bank account and offers customers an alternative option to a conventional bank account, but has similar features.
Here are the main benefits for using Wise: |
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Sources used:
- Hamptons International - A guide to buying property in Spain
- Expatica - Spanish real estate: buying a house in Spain
- Seb Leeson - Canary Islands property tax: all you need to know
- Seb Leeson - Transfer tax in Spain
- Tenerife Estate Agents - What are the ongoing costs of owning a property in Tenerife?
- Idealista - The Canary Islands consider limiting foreign house buying
- Manchester Evening News - Spain launches tough new tourism law affecting Canary Islands and more
- Liverpool Echo - Canary Islands new tourism rules could see ruthless 10 year ban impacting Brits' holiday dreams
- Canarian Weekly - Supreme Court to decide if apartment owners can rent independently of tourist operators and receptions
Sources last checked 28-Oct-2025
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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