Quick answer: 4 new-build developments are listed on this page from €730 000. The Canary Islands sit outside the EU VAT area, so a new build here carries IGIC at 7% plus 1% AJD rather than the 10% IVA charged on the mainland, which is roughly €21,000 less on a €700,000 purchase.
Why Tenerife Prices Differ From the Mainland
Tenerife is the largest of the Canary Islands and the only one with two distinct property markets rather than one. The north around Santa Cruz and La Laguna is the working island: administration, a university, a port, cloud cover and green landscape, and a rental market driven by residents rather than visitors. The south around Adeje, Los Cristianos and El Médano is the tourist island: reliable sun, resort infrastructure, and prices set by holiday demand.
Our listed stock sits in Santa Cruz, on the working side, which is where new-build volume concentrates because that is where land and planning permission exist. Buyers who arrive expecting to buy new build in the southern resort strip generally find resale instead.
Our 4 listed developments here run from €730,000 to €890,000, all in Santa Cruz on the working north side of the island.
The Canary Tax Regime, Which Is Not Mainland Spain
The single most important thing a buyer needs to know about the Canaries is that the islands sit outside the EU VAT area and run their own indirect tax. A new-build purchase here does not carry the 10% IVA that applies on the mainland. It carries IGIC at 7%, the Impuesto General Indirecto Canario, plus AJD stamp duty at 1%. On a €700,000 new build that is roughly €21,000 less than the identical purchase in Málaga, which is a material difference on a single transaction and one that mainland comparison articles routinely miss.
Resale purchases carry ITP at 6.5% in the Canaries, again below the 7% charged in Andalucía and well below the 9% now applied in the Valencian Community. The islands also operate the Reserva para Inversiones en Canarias and the ZEC regime, which matter for corporate structures rather than for an individual buying a home, but they are the reason the archipelago has a different fiscal character from the rest of Spain.
Set against that, the cost of getting there and the cost of maintaining a property at distance are both higher than on the mainland coast.
Letting in the Canaries
The letting regime here is regional, it is genuinely restrictive in the places tourists actually want to stay, and it decides your model before the yield maths does. Both Las Palmas and Santa Cruz de Tenerife provinces require a vivienda vacacional registration for any nightly let, and the Canary government has spent several years tightening the system. The rule that catches buyers is the classification: properties inside designated tourist zones frequently cannot be let residentially, and properties in residential buildings frequently cannot be let touristically, which is close to the opposite of what most arrivals assume. Community of owners statutes apply on top and can prohibit short letting outright by a 3 of 5 majority. Confirm the classification for your exact unit in writing before the reservation, because a property bought for holiday letting that turns out to be residential-only is a property you can use yourself or let for twelve months, and nothing else.
The letting regime is regional and it is genuinely restrictive in the places tourists actually want to stay.
Both Las Palmas and Santa Cruz de Tenerife provinces require a vivienda vacacional registration for nightly letting, and the Canary government has spent several years tightening it. Properties inside designated tourist zones frequently cannot be let residentially, and properties in residential buildings frequently cannot be let touristically, which is close to the opposite of what most buyers assume. Community of owners statutes apply on top and can prohibit short letting outright.
The practical consequence is that the letting model has to be confirmed before the purchase, not after. A property bought for holiday letting that turns out to sit in a residential-only classification is a property you can only use yourself or let long-term, and the yield maths changes completely.
Year-round demand is the compensation. The Canaries have the flattest seasonality in Spain: winter is the high season for Northern European visitors, which removes the empty November-to-March period that defines the mainland Mediterranean coast.
Canary ITP on resale is 6.5%, below the 7% charged in Andalucía and well below the 9% now applied in the Valencian Community.
What Island Ownership Actually Costs
Distance is the cost buyers underestimate, and on the Canaries it shows up in three separate places. Getting there is a flight rather than a drive, so a maintenance visit is a two-day commitment and anything you cannot handle remotely needs a local person on retainer: key-holding plus basic property management typically runs €80 to €150 a month before any letting service is added. Building materials and trades cost more because most of it arrives by sea, and renovation quotes on the islands commonly run 15% to 25% above the equivalent mainland job with longer lead times. Against that, IBI is generally moderate, the climate does less damage to a building than a mainland winter, and the year-round letting season means the property spends less of the year empty than a Costa del Sol equivalent would.
Distance is the cost buyers underestimate, and it shows up in three places.
Getting there is a flight rather than a drive, which means a maintenance visit is a two-day commitment rather than an afternoon. Anything you cannot handle remotely needs a local person on retainer, and key-holding plus basic property management on the islands typically runs €80 to €150 a month before any letting service.
Building materials and trades cost more because most of it arrives by sea. Renovation quotes on the islands commonly run 15% to 25% above the equivalent mainland job, and lead times are longer.
Against that, IBI on the islands is generally moderate, the climate does less damage to a building than the mainland winter, and the year-round letting season means a property spends less time empty. The arithmetic works, but it works differently from a Costa del Sol apartment and should be modelled separately rather than by analogy.
Buyer Scenarios on Tenerife
North and south are two different purchases here, and the three recurring scenarios divide along that line and the tax one.
The southern winter-sun buyer. Someone buying in the south for the sun and the letting calendar. Seasonality on the island is the flattest in Spain and winter is the high season, which is the reverse of the mainland pattern. That helps the income model and constrains personal use, because the months you most want to be there are the months the property earns most. Decide which of the two you are buying for before you choose the location.
The northern resident buyer. Someone buying in the greener, wetter north for a year-round address rather than a holiday one. This is a resident market with a different tenant base, a different rental calendar and a different resale pool, and comparing it against the south on price per m2 alone is misleading.
The tax-led buyer. Someone comparing the island against the mainland at completion. New build here carries IGIC at 7% plus 1% AJD rather than the mainland 10% IVA, roughly €21,000 less on a €700,000 purchase, and resale carries ITP at 6.5% against 7% in Andalucía and 9% in the Valencian Community. Stock on this page starts at €730 000.
All three run into the same requirement: vivienda vacacional registration, with residential and tourist classifications that are frequently exclusive. Establish which category the specific property holds in writing before you offer.
What to Verify Before You Reserve
- Whether the unit is classified for residential or tourist use, because the two are frequently exclusive.
- That the IGIC and AJD figures on your reservation match the Canary rates rather than mainland IVA.
- The community statutes on short letting, and the last two AGM minutes.
- Who holds the keys and manages the property when you are not on the island, and at what monthly cost.
- The promoting entity against the guarantee issuer, which we have not yet done on the developments below.
North and South Are Two Different Purchases
Tenerife is large enough that its two halves function as separate property markets with different weather, different buyers and different economics. The north around Santa Cruz and La Laguna is the administrative and academic island: regional government, a university, the main port and a permanently resident population, greener and considerably cloudier because the trade winds break against the north face. The south around Adeje, Los Cristianos and El Médano is the tourist island, with dependable sun and prices set by holiday demand rather than local incomes. New build is scarce there because the buildable coastal land went decades ago, so the south trades overwhelmingly as resale while all 4 developments on this page sit in the north.
Tenerife is large enough that the island’s two halves function as separate markets with different weather, different buyers and different economics.
The north around Santa Cruz de Tenerife and San Cristóbal de La Laguna is the administrative and academic island. It has the regional government, the University of La Laguna, the main port and a population that lives there permanently. It is also greener and considerably cloudier, because the trade winds break against the north face of the island. Rental demand is resident and year-round, and this is where the new-build pipeline sits, including everything on our list.
The south around Adeje, Los Cristianos, Costa Adeje and El Médano is the tourist island. Reliable sun, resort infrastructure, and a property market priced by holiday demand rather than by local incomes. New build is scarce because the buildable coastal land was developed decades ago, so this end of the island trades overwhelmingly as resale.
The practical consequence is that a buyer who wants sun and a holiday-letting model is shopping resale in the south, while a buyer who wants a new build with year-round tenants is shopping the north. Those are different products at different prices, and conflating them is how budgets go wrong.
Getting There, and Why It Matters More Than on the Mainland
Tenerife has two airports. Tenerife South handles the international traffic and sits close to the resort strip. Tenerife North handles most inter-island and mainland Spanish routes and sits close to Santa Cruz and La Laguna.
Which one serves your property matters for two reasons. For letting, guests arriving at Tenerife South will not choose a property ninety minutes away in the north. For your own use, the mainland connection through Tenerife North is what determines whether a maintenance visit is a day or a weekend.
Inter-island ferries connect Tenerife to La Gomera, La Palma and Gran Canaria, which is relevant if you are comparing islands rather than committing to one.
Tenerife South and Tenerife North are separate airports serving those two halves, and which one is closer changes both the letting model and how often you actually visit. Guests landing at Tenerife South will not book a property 90 minutes away in the north, while your own mainland Spanish connection runs mostly through Tenerife North. Inter-island ferries link Tenerife to La Gomera, La Palma and Gran Canaria, which matters if you are still comparing islands rather than committed to one. On the letting side the north gives you a resident tenant on a twelve-month contract and the south gives you holiday weeks at higher nightly rates across a shorter usable season, and those two models produce very different net yields once the 22% to 28% management charge on a short let is applied.
Buying Costs on the Islands
On the €730,000 entry in our listed range, a Canary new build carries IGIC at 7%, which is €51,100, plus AJD at 1% or €7,300. The mainland equivalent would be 10% IVA at €73,000 plus 1.2% AJD at €8,760, so the island saves roughly €23,000 on the same purchase price.
Add notary at €600 to €1,200, land registry at €400 to €800, and an independent lawyer at 1% to 1.5%, which is €7,300 to €11,000 at this level. Total acquisition cost lands around 10% over the price against roughly 13% on the mainland.
Running costs move the other way. Community fees on a Canary block with a pool typically run €90 to €250 a month, IBI is generally moderate, but remote management adds €80 to €150 a month before any letting service and trades charge a premium because materials arrive by sea. Non-resident income tax applies as it does everywhere in Spain: 19% of net for EU and EEA residents, 24% of gross with no deductions for everyone else.
Insider tip: ask which of the two airports serves the property before anything else. Guests landing at Tenerife South will not book a place ninety minutes north, and your own mainland connection runs through Tenerife North. On an island that distinction changes both the letting model and how often you actually visit.
Listed Developments
These are developments we have not yet run through our own checks. The figures below are the developer’s own published release data, recorded on the date shown. We have not verified the bank guarantee wording, the promoting entity, the community fee estimate or the licence position on these, which is the difference between this table and the one above. Ask us and we will run those checks against a specific unit before you commit to anything.
| Development | Location | Homes | From | Developer | Source |
|---|---|---|---|---|---|
| Abora | Adeje, Tenerife | 138 | €394 955 | Metrovacesa | published 2026-09-06 |
| Serene | Santa Cruz de Tenerife | n/a | €730 000 | AEDAS Homes | published 2026-09-06 |
| Solum | Santa Cruz de Tenerife | n/a | €890 000 | AEDAS Homes | published 2026-09-06 |
| Carena Waves | Santa Cruz de Tenerife | n/a | on request | AEDAS Homes | published 2026-09-06 |
| Carena | Santa Cruz de Tenerife | n/a | on request | AEDAS Homes | published 2026-09-06 |
| Residencial Agama | Santa Cruz de Tenerife | 62 | on request | Metrovacesa | published 2026-09-06 |
| Residencial Ancor | Arico, Tenerife | 73 | on request | Metrovacesa | published 2026-09-06 |
| Residencial Ancor F2 | Arico, Tenerife | 66 | on request | Metrovacesa | published 2026-09-06 |
Where Tenerife Sits Among Spanish Markets
If the Canary tax regime is the reason you are looking here, Gran Canaria operates under exactly the same rules and concentrates its new build in Las Palmas in the same way Tenerife concentrates its in Santa Cruz. If year-round letting is the objective rather than the tax, Málaga achieves something similar on the mainland with far better flight connections and no island logistics.
Buyers weighing an island against the mainland coast should read the Costa del Sol page for the comparison, and the Andalucía page for how the mainland tax position differs. The apartments hub covers community fees and the statutes question, which apply on the islands exactly as they do on the mainland.
Frequently Asked Questions
Our listed new-build stock in Santa Cruz runs from €730,000 to €890,000. That reflects where the new build is rather than the whole island: the working north around Santa Cruz and La Laguna carries the development pipeline, while the southern resort strip around Adeje and Los Cristianos trades mostly as resale at a wide range of price points.
On new build, yes. The Canaries sit outside the EU VAT area, so a new build carries IGIC at 7% plus 1% AJD instead of the 10% IVA plus 1.2% AJD charged on the mainland. On a €700,000 purchase that is roughly €21,000 less. Resale carries ITP at 6.5%, below the 7% in Andalucía and the 9% in the Valencian Community.
Only if the property is classified for tourist use and holds a vivienda vacacional registration, and the Canary government has tightened this considerably. Properties inside designated tourist zones often cannot be let residentially, and properties in residential buildings often cannot be let touristically. Confirm the classification before you reserve rather than after.
Less than anywhere on the Spanish mainland. Winter is the high season for Northern European visitors, which fills exactly the months when the Mediterranean coast empties. That flat seasonality is the strongest part of the Canary letting case, and it partly offsets the higher cost of managing a property at distance.
Budget €80 to €150 a month for key-holding and basic management before any letting service, and expect renovation quotes 15% to 25% above the mainland equivalent because materials arrive by sea. A maintenance visit is a flight rather than a drive, which is the cost most buyers underestimate.
On a €700,000 new build the Canary IGIC route saves roughly €21,000 against the mainland IVA route.
Get a Spain property shortlist
Tell us your budget and market (Costa Blanca, Costa del Sol, Balearic Islands). We reply within one business day with options matched to your goals.