Tenerife is the largest island of the Canary archipelago; more than half of its population lives here. The developed infrastructure, the ring road around the island, and most importantly the climate, which, according to NASA research, is recognized as the best climate on earth, makes Tenerife special not only among the Canary Islands, but also a global resort.
Gorgeous beaches with blue flags, a large number of natural and cultural attractions, all this attracts a huge number of tourists annually. Adults and children can discover something interesting on Tenerife every day.
The property market in Tenerife, like any other, has its ups and downs. After the crisis, from 2016 the real estate market in Spain and of course in Tenerife has a steady upward trend, which makes investing in the purchase of a house, apartment, villa or townhouse in Tenerife a profitable investment. In fact, real estate prices are now returning to the pre-crisis level and today have not reached their maximum, so buying real estate now is still quite profitable, especially real estate on the first coastline, overlooking the ocean is an excellent opportunity for passive income.
The advantages of buying property in Tenerife
1) The Canary Islands is a territory of Spain, European legislation is in force, the standard of living on Tenerife is quite high, economic and political stability.
2) Compared to mainland Spain, prices for products, goods, gasoline on Tenerife are lower, since the Canary Islands are a preferential taxation zone, in a word, it is more profitable to live on Tenerife than on the mainland or in other European countries, such as France, Germany, Italy and many others.
3) The tax on the purchase or sale of real estate is lower than on the mainland, the tax on the purchase of real estate in Tenerife is equal to 6.5% for the purchase of secondary housing and 7% for the purchase of housing from the developer, primary housing. It is also possible to obtain tax benefits for the purchase of real estate in Tenerife.
4) Buying a property in Tenerife gives you the right to stay in Spain 180 days a year. With the amount of direct investment (excluding mortgages) of 500,000 euros obtaining a residence permit (residence permit) in a simplified mode, the so-called “Golden Residence” is issued.
5) Profitable mortgage lending in Tenerife. Banks finance up to 80% of the purchase price of real estate, the interest rate is 2.5 – 3.5% per year, depending on your citizenship and the amount of financing.
6) The loyal attitude of the authorities to foreigners, the goodwill of the local population, easy integration. The authorities of the Canary Islands welcome investment in Tenerife, tourists and foreign residents in the south of Tenerife more than the local population, many people speak different languages, the most popular are English, Italian, Spanish, Russian, Ukrainian.
7) The rise in property prices has not stopped and the price of your property will grow. Liquidity of your investment.
8) High demand from tourists for rental housing 365 days a year in the south of Tenerife. Your property brings you income.
9) Excellent ecology on Tenerife, mild climate, beautiful nature.
As of July 2018, the average price per m² of property in Tenerife is between 2,000 and 2,500 euros. At the same time, this indicator is calculated taking into account all types of real estate, that is, there is now a decline in prices for Tenerife real estate by about 5-7%.
The best time to buy a house in Tenerife. But by the end of September, I am sure that prices will be somewhat higher, since summer is traditionally the time of holidays and rest, reduced business activity and demand for the purchase of real estate. If you want to get a more accurate estimate of the value of your object, use our services for free.