Cost of Buying Property in the Canary Islands (2026 Guide)
On a resale in the Canary Islands, budget approximately 8–10% of the purchase price on top of the property price for taxes and professional fees. Transfer tax (ITP) at 6.5% is the largest single cost — and these rates differ from mainland Spain.
Get a Cost Estimate for Your PurchaseFigures are guidance for 2026; confirm current rates for your specific transaction.
Why Canary Islands Purchase Costs Differ from Mainland Spain
The Canary Islands are an autonomous community with their own tax regime. Resale property is taxed under Impuesto de Transmisiones Patrimoniales (ITP) at a flat 6.5% — not the sliding ITP scales used in most mainland regions (often 8–11% depending on price band). New-build homes pay IGIC (the Canaries' equivalent of mainland IVA) rather than ITP, plus stamp duty on the deed. If you are comparing quotes from a mainland-focused agent or mortgage broker, verify that their cost estimate uses Canarian rates.
For the full purchase process, see our buying property in Spain overview and island guides for Lanzarote, Tenerife, Gran Canaria, and Fuerteventura.
Resale Property: Cost Breakdown
On a second-hand (resale) purchase, the buyer pays the following at or shortly after completion at the notary.
Transfer Tax (ITP) — 6.5%
ITP is the single largest cost on a resale. It is calculated on the higher of the declared purchase price or the Catastro valor de referencia (reference value). The buyer must pay within 30 days of signing the notarial deed (escritura pública). At 6.5%, a €250,000 purchase generates €16,250 in ITP if the reference value does not exceed the price.
Notary Fees — approximately €600–€1,500
Notary fees are set by tariff and scale with the purchase price. For a typical apartment or villa in the €200,000–€400,000 range, expect roughly €800–€1,200. The notary authenticates the deed; their fee is paid by the buyer.
Land Registry Fees — approximately €350–€900
Registration of your title at the Registro de la Propiedad is mandatory and also scales with price. Budget toward the upper end for higher-value coastal properties in Adeje, Maspalomas, or Puerto del Carmen.
Legal / Conveyancing Fees
A qualified Spanish property lawyer conducts due diligence (debts, planning, title, community charges), reviews the contrato de arras, coordinates the notary, and handles tax filings. Fees are typically a fixed quote or around 1% of the price — always confirm scope before instructing.
Gestoría and Administrative Costs
A gestor files ITP returns, NIE-related paperwork, and utility transfers. Allow roughly €250–€500 for standard admin on a straightforward purchase.
New-Build Property: Different Taxes Apply
Buying directly from a developer (first transmission) does not trigger ITP. Instead:
IGIC — 7%
The Canary Islands Impuesto General Indirecto Canario (IGIC) applies at 7% on the purchase price of new residential property. This is the Canarian equivalent of mainland IVA (which is 10% on new homes in most of Spain).
AJD Stamp Duty — approximately 1%
Actos Jurídicos Documentados (AJD) stamp duty on the notarial deed is roughly 1% in the Canaries (rate can vary slightly by island and deed type). Notary, registry, legal, and gestoría costs still apply on top.
New-build totals are often in a similar ballpark to resale once IGIC and AJD are combined with professional fees — but the tax line items are different, so do not assume a resale ITP quote applies to an off-plan purchase.
Worked Example: €250,000 Resale in the Canary Islands
The table below assumes a resale where the Catastro reference value does not exceed the purchase price.
| Cost item | Amount (€) |
|---|---|
| Transfer tax (ITP) at 6.5% | 16,250 |
| Notary fees (estimate) | 900 |
| Land Registry (estimate) | 550 |
| Legal / conveyancing (estimate) | 1,750 |
| Gestoría / admin (estimate) | 400 |
| Total costs on top of purchase price | ~19,850 |
That is approximately 7.9% of €250,000 — within the typical 8–10% range once mortgage arrangement fees, NIE costs, or a higher reference value are factored in. Contact us or book a free consultation for a quote tailored to your property and island.
What Is Not Included in These Figures
The percentages above cover buyer-side transaction costs. They do not include:
- Your deposit (typically 10% on signing the contrato de arras) or mortgage deposit (Spanish banks often lend up to 70–80% of valuation)
- Mortgage opening/arrangement fees or life insurance linked to the loan
- Community fees, IBI (local property tax), or utility connection deposits
- Furniture, renovations, or holiday-rental licence costs after purchase
Need an Accurate Cost Estimate?
We advise buyers across Lanzarote, Tenerife, Gran Canaria, and Fuerteventura on conveyancing, due diligence, and total purchase costs before you sign.
Book a Free Consultation Buying Property ServicesFrequently Asked Questions
How much are the total costs of buying property in the Canary Islands?
On a resale, budget approximately 8–10% of the purchase price on top of the property price. Transfer tax (ITP) at 6.5% is the largest single item, followed by notary fees, Land Registry charges, legal/conveyancing fees, and gestoría costs. New-build purchases pay IGIC and AJD instead of ITP, but professional fees still apply.
What is ITP in the Canary Islands?
ITP (Impuesto de Transmisiones Patrimoniales) is the transfer tax paid by the buyer on resale property. In the Canary Islands it is a flat 6.5% of the higher of the purchase price or the Catastro valor de referencia. It must be paid within 30 days of signing the notarial deed. This rate is lower than most mainland Spanish regions, which use progressive bands.
Do new-builds pay the same tax as resales?
No. New-build homes bought directly from a developer pay IGIC at 7% (the Canaries' equivalent of mainland IVA) plus AJD stamp duty of approximately 1% on the deed — not ITP. Notary, Land Registry, legal, and gestoría costs apply to both transaction types.
How is ITP calculated if the Catastro value is higher than the price?
ITP is assessed on whichever is higher: the declared purchase price or the Catastro valor de referencia. If the reference value exceeds what you agreed to pay, you still owe 6.5% on that higher figure. Your lawyer should check the reference value during due diligence so you are not surprised after completion.
