Tenerife – the largest island of the Canary archipelago, there live more than half of its population. The developed infrastructure, the ring road around the island, and the main climate, which, according to the NASA agency’s investigations, is recognized as the best place on earth, makes Tenerife special not only among the Canary Islands but also the world resort. Magnificent beaches with blue flags, a large number of natural and cultural attractions, all this attracts a huge number of tourists every year. Adults and children every day can discover for themselves something interesting in Tenerife.
The real estate market in Tenerife, like any other, has its ups and downs. After the crisis, since 2016, the real estate market in Spain and of course in Tenerife has a steady upward trend, which makes investing money in buying a house, apartment, villa or townhouse in Tenerife a profitable investment. In fact, property prices are now returning to the pre-crisis level and today have not reached their maximum, so buying real estate is still quite profitable, especially real estate on the first coastline, with an ocean view is an excellent opportunity for passive income.
Advantages of buying a property in Tenerife
- The Canary Islands are the territory of Spain, European legislation is in force, the standard of living in Tenerife is quite high, economic and political stability.
- Compared to mainland Spain, the prices of food, goods, gasoline in Tenerife are lower, since the Canary Islands are a zone of preferential taxation, in short, to live in Tenerife more profitable than on the mainland or in other European countries such as France, Germany, Italy and many others.
- 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 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.
- Buying a property in Tenerife gives you the right to stay in Spain 180 days a year. With the amount of direct investment (without mortgages) from 500,000 euros, obtaining a residence permit (residence permit) in a simplified regime, the so-called “Golden Residence” is issued.
- Advantageous 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.
- The loyal attitude of the authorities towards foreigners, goodwill of the local population, simple integration. The Canary Islands authorities welcome investments in Tenerife, tourists, and foreigners living in the south of Tenerife more than the local population, many residents speak different languages, the most popular English, Italian, Spanish, Russian, Ukrainian.
- The rise in property prices has not stopped and the price of your property will grow. Liquidity of your investments.
- High demand for tourists to rent housing 365 days a year in the south of Tenerife. Your property brings you revenue.
- Excellent ecology in Tenerife, mild climate, beautiful nature.As of July 2018, the average price per m² of real estate in Tenerife is in the range of 2000 – 2500 euros. At the same time, this indicator, calculated taking into account all types of real estate, that is now there is a decline in property prices in Tenerife by about 5-7%.
The best time to buy a house in Tenerife
But by the end of September, I am sure that the prices will be somewhat higher since the summer is traditionally the time of holidays and rest, reduced business activity and demand for the purchase of real estate.
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