Discover the Advantages of Buying Property in Tenerife: Your Step-by-Step Guide

Today, we'll take you to sunny Tenerife. Dreaming of owning an apartment on this paradise island? You're not alone - this largest of the Canary Islands attracts investors from all over Europe with its unique climate and stable real estate market. In this article, as GlobiHome experts, we present you everything, you need to know before buying your own piece of paradise in Tenerife.

The real estate market in Tenerife is constantly developing. For several years, average prices have been growing by about 8% annually. In the prestigious Costa Adeje district, apartments range from 3000 to 4000 EUR per square meter, and luxury apartments with ocean views cost from 5000-7000 EUR/m². We will show you step by step how to buy property in Tenerife, what are the additional purchase costs, taxes, benefits, risks, and who to contact for details and offers.

Why invest in an apartment in Tenerife?

Before we dive into a detailed analysis, let's pay attention to the key advantages of investing in Tenerife:

• Year-round tourist season - unlike other European resorts
• Stable value growth - an increase of about 7-8% annually
• High profitability - short-term rental brings 7-9% annually
• Great communication - two international airports
• Legal security - investment within the European Union

Tenerife is very popular among tourists and investors from all over Europe. An apartment that two years ago could be bought for 200,000 EUR is now worth over 250,000 EUR.

Property Prices in Tenerife 2025 - Current Market Analysis

Let's take a closer look at how prices vary in different regions of the island. Data shows significant differences between the south and north of the island.

Costa Adeje - the prestigious south

The most luxurious district of Tenerife attracts demanding investors:

• One-bedroom apartments: from 190,000 EUR (40-45m²)
• Two-bedroom apartments: 260,000 EUR (60-75m²)
• Luxury apartments with ocean views: from 400,000 EUR
• Penthouses and villas: from 600,000 EUR

Los Cristianos and Las Americas - the tourist heart

Two popular districts where you can still find great deals with a good price-to-investment potential ratio:

• Studios: from 160,000 EUR
• Two-bedroom apartments: 230,000 EUR
• Apartments with ocean views: from 350,000 EUR

Puerto de la Cruz - the charm of the north

For those seeking a more authentic, Canary atmosphere:

• One-bedroom apartments: from 130,000 EUR
• Two-bedroom apartments: 190,000 EUR
• Properties with ocean views: from 300,000 EUR

It's worth noting that many apartments in Tenerife have access to relaxation areas, pools, jacuzzis, gardens, or gyms.

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Weather in Tenerife - eternal sunshine for your investment

It is the unique climate that makes investing in an apartment on this island so attractive. Unlike other European destinations, where the season lasts only a few months, here you can count on tourists all year round. The temperature on the coldest winter days rarely falls below 20°C, and in summer it does not exceed a pleasant 28-30°C.

Interestingly, the island offers a variety of microclimates. The south, where the most popular resorts like Costa Adeje or Los Cristianos are located, enjoys the most sunny days - averaging over 300 a year! The north of the island, including the charming Puerto de la Cruz, features slightly more rainfall, resulting in lush, tropical vegetation. This climatic diversity ensures everyone finds their ideal location here.

• Winter (December-March): 22-24°C
• Spring (April-June): 23-26°C
• Summer (July-September): 26-30°C
• Autumn (October-November): 23-25°C

An additional advantage is the ocean water temperature, which does not drop below 19°C even in winter, allowing for swimming all year round. This aspect attracts tourists from all over Europe, especially in the winter when the continent experiences low temperatures.

Real Estate Purchase Procedure in Tenerife Step by Step - Everything You Need to Know

The property purchase process in Tenerife is well regulated legally and safe. Below we describe all the stages you will encounter in purchasing your dream apartment in Tenerife:

1. Preparation for purchasing property in Tenerife

• Obtaining an NIE number (Número de Identidad de Extranjero) - Spanish ID number for foreigners
• Opening a Spanish bank account
• Having necessary documents (ID card or passport)

2. Selection and reservation of the property

• Signing a preliminary reservation agreement
• Payment of reservation deposit (usually 3000-6000 EUR)
• Setting a finalization date for the transaction (usually 30-60 days)

3. Due diligence

• Checking the property's legal status in the register (Registro de la Propiedad)
• Verification of all permits and licenses
• Checking for any mortgage burdens
• Checking for overdue communal fees and taxes
• Verification of technical documentation and energy certificate

4. Finalization of the transaction

• Preparation of the notarial deed (Escritura Pública)
• Signing the contract at the notary
• Transfer of the full purchase amount
• Transfer of keys and technical documentation

5. After the purchase

• Registration of the new ownership in the property registry
• Transfer of utilities (electricity, water, gas)
• Notification to the tax office
• Payment of the purchase tax (6.5-7% of the value)

The whole process usually takes 4 to 6 weeks, provided all documents are correctly prepared. This process is not complicated, but it is worth completing it with someone who specializes in real estate transactions in Tenerife, is on site, and preferably speaks your language for smooth communication. At the end of the article, we provide contact information for a recommended real estate agent in Tenerife.

Remember, every transaction is different, and additional requirements or documents may arise depending on the property's or region's specifics. Always carefully review each document before signing and don't hesitate to ask questions if something is unclear.

If you're a professional agent, we invite you to co-create expert articles on the real estate market anywhere in the world. You can find collaboration details in the collaboration section.

Additional Costs When Purchasing Property in Tenerife

When planning your budget, besides the actual price to pay for the property, the following fees should be considered:

• Purchase tax in Tenerife: 6.5% of the property value on the secondary market, and 7% of the value on the primary market
• Notary: about 0.5-1% depending on the property value
• Registration fees: about 0.5% of the property value
• Power of attorney if needed: 150-300 EUR
• Real estate agency commission if used: 3-5%
• Utility transfer (electricity, water, waste, alarm): 600-900 EUR

Realistically, the total additional costs in Tenerife are 10-13% of the property value.

Renting a Property in Tenerife - Real Data from 2025

Many clients choose to rent out their property. Most often, clients visit once or twice a year for their holidays, and rent out the apartments to tourists for the rest of the year. Below we have compiled data from last year with GlobiHome agents we collaborate with, to present you the latest data with an example from Costa Adeje:

High season in Costa Adeje (December-April)

• One-bedroom apartment: 120-150 EUR/night
• Two-bedroom apartment: 150-200 EUR/night
• Apartment with ocean view: 200-300 EUR/night
• Penthouse with terrace: 300-500 EUR/night

Mid-season in Costa Adeje (May-June, September-November)

• One-bedroom apartment: 90-120 EUR/night
• Two-bedroom apartment: 120-160 EUR/night
• Apartment with ocean view: 160-250 EUR/night
• Penthouse with terrace: 250-400 EUR/night

Low season in Costa Adeje (July-August)

• One-bedroom apartment: 80-110 EUR/night
• Two-bedroom apartment: 110-150 EUR/night
• Apartment with ocean view: 150-220 EUR/night
• Penthouse with terrace: 230-380 EUR/night

Example Annual Calculation for a Two-Bedroom Apartment in Costa Adeje:

Revenue:

The average annual occupancy lasts about 250 days per year. The average rental price of a two-bedroom apartment in Costa Adeje is 150 EUR/night, resulting in an annual income of 37,500 EUR

Costs:

• Cleaning and linen change: about 4,600 EUR
• Utilities (electricity, water, internet, alarm, waste): about 3,400 EUR
• Maintenance and minor repairs: about 2,000 EUR
• Management agency and marketing service (20%): 7,500 EUR
• Rental tax (19%): 7,125 EUR

Total annual costs: around 24,625 EUR

Net annual profit: about 12,875 EUR

Of course, this is only an example calculation, and in many cases, the profit may be higher, but we prefer to approach with real, most likely data and hopefully pleasantly surprise the client with better results.

It's worth noting that the rental market in Tenerife is becoming more professional. Guests expect high standards and comprehensive service, which means providing an appropriate level of services but also allows maintaining high rates all year round.

New Law Against "Occupants" - Greater Investment Security in Tenerife

For investors considering buying property in Spain, we have good news. In November 2024, the Congress of Deputies approved a groundbreaking law regarding illegal property occupation ("occupants"). The most significant change is the introduction of an expedited judicial procedure - cases will be resolved within a maximum of 15 days, unlike the current 4-9 months. Additionally, owners will have access to simplified procedures for reporting cases of illegal occupation of homes.

The new regulations, which are set to come into force in the first half of 2025, will significantly strengthen the protection of private property. This is particularly important in Tenerife, where many foreign investors own rental properties. These changes align Spain with the standards of other European countries, where evictions of illegal occupants are carried out much faster - in France within 48 hours, and in Germany even within 24 hours.

At the same time, in practice, the vast majority of properties are safe. New developments are gated, and very often investments have alarms or security. Contrary to what the media may say, it is rare to fear illegal occupation of our property, especially in new investments.

Summary

Tenerife remains one of the safest and most profitable investment destinations in Europe. A stable market, rising prices, and year-round rental potential create ideal conditions for savvy investors.

Planning to buy a property in Tenerife? Contact an agent who will prepare property offers to meet your requirements and guide you through the entire process from A to Z.