Why the Canary Islands?
- A true paradise on Earth and a very safe destination;
- Part of Spain and the European Union;
- Beautiful weather year-round; and
- A secure Western legal framework for real estate ownership.
Benoit Desjardins, Lawyer and President of the firm, has been present in the Canary Islands since 2019 and owns a property there.
Our office is familiar with the seven main islands of the archipelago (Gran Canaria, Tenerife, Lanzarote, La Palma, La Gomera, Fuerteventura, and El Hierro), as well as the various real estate sectors and markets.
Air Canada and Air Transat are beginning direct flights next winter from Montreal and Toronto, which should significantly increase accessibility for Canadian clients.
We are observing a growing trend among retirees and affluent North Americans who are moving away from Florida and the United States in general while still seeking a warm, safe, and Western environment.
For many North American buyers, purchasing property abroad can be stressful. Clients are looking for guidance, reassurance, and trusted local contacts throughout the process.
We emphasize the rental potential of properties, as many homes can be rented short-term.
We also have access to the professional network required to establish the appropriate legal and tax structures in Spain, including real estate lawyers, CPAs, and tax advisors.
Canary Islands: The Best Places to Invest in Real Estate in 2026
Competitive property prices, year-round spring-like weather, and a strong rental market continue to make the Canary Islands one of Europe's most attractive real estate destinations for Canadian investors. While several European housing markets have slowed, the Spanish archipelago has remained remarkably resilient.
In this guide, we explore the islands offering the strongest investment opportunities in 2026, the key tax considerations for Canadian buyers, and the true cost of purchasing property in the Canary Islands.
Why Are the Canary Islands Still Attracting Investors?
Although many European real estate markets are experiencing slower growth, the Canary Islands continue to perform well. Limited housing supply, strong tourism demand, and sustained interest from international buyers continue to support property values.
For Canadians, the advantages are numerous:
- Pleasant, mild weather throughout the year;
- Outstanding quality of life;
- A thriving tourism industry;
- A more favourable tax environment than many other regions of Spain;
- Improved accessibility with direct flights between Canada and the Canary Islands expected to begin in Winter 2026.
Where Should You Invest in the Canary Islands in 2026?
| Island | Estimated Average Price | Appreciation Potential | Rental Yield | Best Suited For |
|---|---|---|---|---|
| Tenerife | ≈ €3,400/m² | ★★★★☆ | ★★★★☆ | Long-term wealth preservation |
| Gran Canaria | ≈ €2,700–€3,000/m² | ★★★☆☆ | ★★★★☆ | Balanced growth and income |
| Lanzarote | ≈ €3,000–€3,500/m² | ★★★★★ | ★★★☆☆ | Capital appreciation |
| Fuerteventura | ≈ €2,500–€3,000/m² | ★★★★★ | ★★★★☆ | Long-term growth |
Average prices vary depending on the municipality and proximity to the coastline.
Tenerife: The Benchmark Investment
Tenerife remains the largest and most established real estate market in the Canary Islands. The southern resorts—including Costa Adeje, Los Cristianos, and Playa de las Américas—continue to attract affluent international buyers.
Demand remains strong throughout the year for both vacation homes and rental properties, supporting price stability and making resale relatively straightforward.
Key Advantages
- Well-established property market;
- Excellent resale liquidity;
- Year-round tourism;
- Strong rental demand.
What Can €250,000 Buy?
A budget of approximately €250,000 can typically purchase a two- or three-bedroom apartment in many desirable neighbourhoods, or a larger residence in quieter residential communities.
Gran Canaria: The Best Balance
Often overshadowed by Tenerife, Gran Canaria offers an excellent combination of stability and rental income.
Las Palmas, the island's capital, benefits from a large permanent population and a diversified economy, creating consistent demand for long-term rentals. In the south, Maspalomas, Meloneras, and Playa del Inglés remain among the Canary Islands' premier tourist destinations.
This combination of residential and tourist demand provides investors with greater diversification.
Key Advantages
- Diverse tenant base;
- Stable rental income;
- Diversified local economy;
- Relatively secure investment market.
What Can €250,000 Buy?
This budget generally allows the purchase of a well-located apartment in Las Palmas or a property close to the island's popular southern beach resorts.
Lanzarote: Scarcity Creates Value
Lanzarote stands apart thanks to its strict urban planning regulations designed to preserve its spectacular volcanic landscapes.
Limited new construction helps maintain a constrained housing supply, supporting property values and long-term appreciation.
The island attracts affluent European buyers seeking high-quality properties in an unspoiled natural environment.
Key Advantages
- Limited housing supply;
- Premium destination;
- Strong international demand;
- Excellent long-term appreciation potential.
What Can €250,000 Buy?
Buyers can typically acquire an apartment in desirable areas such as Costa Teguise or Puerto del Carmen, or even a small detached home in certain inland communities.
Fuerteventura: Strong Growth Potential
More affordable than Tenerife and Lanzarote, Fuerteventura continues to gain popularity among investors.
Known for its spectacular beaches and world-class surfing and kitesurfing conditions, the island enjoys steadily increasing tourism. Corralejo, in particular, has become one of the most dynamic markets.
With prices still below those found on several neighbouring islands, many investors believe significant upside remains.
Key Advantages
- Lower entry prices;
- Steadily growing tourism;
- Above-average appreciation potential;
- Strong seasonal rental demand.
What Can €250,000 Buy?
A budget of €250,000 generally provides access to a modern apartment or a small home in several sought-after communities, particularly around Corralejo.
Before Purchasing
Before completing a purchase, buyers should carefully review:
- Local regulations governing short-term vacation rentals;
- Municipal planning and licensing requirements;
- Condominium or homeowners' association restrictions;
- The tax rules applicable to non-resident property owners.
Working with a lawyer experienced in Spanish real estate law is strongly recommended.
Tax Considerations
Purchasing a Resale Property
The purchase of a resale property is generally subject to a 6.5% Property Transfer Tax (ITP).
Purchasing a New Property
Newly built homes are generally subject to:
- 7% IGIC (Canary Islands General Indirect Tax);
- Approximately 1% Stamp Duty (AJD).
Annual Ownership Costs
Property owners should also budget for:
- IBI (Spain's municipal property tax);
- Condominium fees, where applicable;
- Certain municipal waste collection taxes;
- Income tax on rental income if the property is rented.
Canadian owners who do not become Spanish tax residents are also subject to various reporting obligations in Spain when earning rental income.
What Is the Total Cost of Buying?
Beyond the purchase price, buyers should budget approximately 10% to 12% of the property's value to cover taxes, legal fees, notary fees, and registration costs.
Example: Property Purchase Price of €250,000
Resale Property
- Purchase Price: €250,000
- Property Transfer Tax (6.5%): €16,250
- Notary & Land Registry: €2,000–€3,000
- Legal Fees (recommended): €2,500–€3,750
- Estimated Total Investment: €271,000–€273,000
New Construction
- Purchase Price: €250,000
- IGIC (7%): €17,500
- Stamp Duty (1%): €2,500
- Notary & Land Registry: €2,000–€3,000
- Legal Fees (recommended): €2,500–€3,750
- Estimated Total Investment: €274,500–€276,500
Key Takeaways
- Tenerife remains the preferred choice for investors seeking long-term stability and wealth preservation.
- Gran Canaria offers an outstanding balance between steady rental income and capital appreciation.
- Lanzarote is ideal for investors looking for scarcity-driven long-term value growth.
- Fuerteventura continues to offer some of the strongest appreciation potential in the Canary Islands.
With its exceptional climate, competitive tax environment, and resilient real estate market, the Canary Islands remain one of Europe's most attractive destinations for Canadians looking to purchase a vacation home, prepare for retirement in the sun, or diversify their international real estate portfolio.
Our Legal Services for Canadian Buyers Acquiring Real Estate in the Canary Islands
Our firm assists Canadian clients throughout the entire process of acquiring residential, retirement, vacation, or investment properties in the Canary Islands.
Our services include:
- Reviewing and analyzing real estate contracts and legal documentation, including reservation agreements, purchase and sale agreements, financing documents, and related legal instruments.
- Coordinating the various professionals involved in the transaction, including Spanish lawyers, notaries, accountants, tax advisors, mortgage brokers, property managers, and financial institutions.
- Introducing clients to reputable and established real estate agencies in the Canary Islands, helping them identify suitable properties that meet their objectives and budget.
- Assisting clients in understanding the Spanish acquisition process, including due diligence requirements, timelines, costs, taxes, and closing procedures.
- Facilitating communication between Canadian buyers and Spanish professionals, helping overcome language, cultural, and procedural differences.
- Providing ongoing support before, during, and after the acquisition, including referrals for property management, rental operations, insurance, banking, and local professional services.
Our objective is to provide Canadian buyers with confidence, transparency, and access to a trusted network of professionals throughout their real estate acquisition in Spain.
Please note that real estate transactions in Spain are governed by Spanish law and are carried out with the assistance of qualified Spanish professionals. Our role is to support Canadian buyers throughout the acquisition process, coordinate the various parties involved, and provide access to a trusted network of local real estate agents, lawyers, tax advisors, accountants, and other professionals.