{"id":459221,"date":"2022-08-12T14:27:34","date_gmt":"2022-08-12T11:27:34","guid":{"rendered":"https:\/\/alegria-realestate.com\/?p=459221"},"modified":"2025-08-14T21:33:37","modified_gmt":"2025-08-14T18:33:37","slug":"how-to-rent-out-apartment-on-tenerife","status":"publish","type":"post","link":"https:\/\/alegria-realestate.com\/en\/articles\/property-in-spain\/how-to-rent-out-apartment-on-tenerife","title":{"rendered":"The Profitability of Real Estate Property in Tenerife"},"content":{"rendered":"

Today, real estate in Tenerife<\/a> is not just a beautiful dream, but also a profitable investment. To invest in rental housing or to buy a house for permanent residence: that is the question. Both ideas are quite reasonable even under present circumstances of the \u00abchangeable world\u00bb, and below we will try to explain to you why.<\/p>\n

Firstly,<\/strong> Tenerife is the area of \u200b\u200bSpain that has a reduced tax rate for both the purchase of real estate and doing business. The tax on buying new construction in Tenerife (IGIC) is only 7%, and the tax on secondary housing (ITP) is 6.5%.<\/p>\n

For comparison: the corresponding tax for new construction in the Spanish mainland is 10%, while this tax on the secondary market depends on a particular region. For example, in Murcia and Andalusia, it will be 8%, and in the Valencian Community it will be 10%.<\/p>\n

Tenerife is a Special Economic Zone with a very attractive income tax rate (just 4%, while the generally accepted rate is 30%). The main condition for creating your own business is a minimal investment amount and job creation.
\nSecondly, Tenerife can boast climate conditions that are perfect for year-round tourism, thanks to the large number of sunny days. There is also high, but not extreme air temperature, as well as a variety of picturesque landscapes.
\nGiven these factors, property in Tenerife can show stable rent profitability up to 365 days a year, and investing in this property pays off quickly. This advantage is important for those who plan to rent out the acquired housing.<\/p>\n

What are the pros of housing bought here for your own year-round living?<\/h2>\n

Firstly,<\/strong> no costs for heating (it is simply not needed here) is a significant advantage in the coming energy crisis! Night and day temperature differences in Tenerife are so insignificant that central heating is not even provided in most flats (an exception is housing at a high altitude, closer to Teide). At the same time, heating bills in the Spanish mainland can exceed 300 \u20ac\/month in winter \u2013 they are on the rise, and will likely continue to rise for the foreseeable future due to the general economic instability in the world.<\/p>\n

Secondly,<\/strong> Tenerife is one of the top 10 travel destinations in Europe according to the Tripadvisor Travelers’ Choice Awards 2022, ranking 7th in this rating and yielding only one point to Barcelona (6th). After the lifting of Covid restrictions, tourists were glad to fill the beaches of this popular resort again, so the demand for rental housing will be always at a consistently high level here.<\/p>\n

Thirdly,<\/strong> Tenerife offers a great environment, cleanliness, and well-groomed beaches.<\/p>\n

Fourthly,<\/strong> there are inexpensive and high-quality foodstuffs; there is no need to purchase warm clothes and shoes, which is beneficial to daily expenses and the family budget.<\/p>\n

Fifthly,<\/strong> there is a good and affordable (compared to other European countries) wired Internet. For example, for 42 \u20ac\/month, in addition to home internet, you can get a SIM card with free calls and 15 gigabytes of mobile internet in the kit. A reliable and stable network connection is an important factor, especially for \u00abdigital nomads\u00bb who are thinking about moving to warmer climes closer to the sea.<\/p>\n

How much does it cost to buy\/rent a property in Tenerife?<\/h2>\n

According to portal idealista.com, in July 2022, the average cost of buying an apartment in Tenerife was 2,344 EUR\/m\u00b2, and 12.25 EUR\/m\u00b2 \u2013 for rent.<\/p>\n

Non-residential premises are also distinguished by good liquidity here: we are talking about garages, commercial premises and ready-made businesses. So, for example, a garage for 2 cars can be purchased for an amount of 29,900 \u20ac, and the cost of a small office space starts from 30,000 \u20ac.<\/p>\n

Summing up, we note that the profitability of housing in the Canary Islands in the first half of the year 2022 amounted to 7.2%, which is 0.9 points more than 5 years ago. Data from the real estate portal Fotocasa show that in June this year, the purchase of real estate for rent was 0.7% more profitable than in 2021, when the profitability rate was 6.5%, in particular in the popular resort of Santa Cruz de Tenerife, it was 6.6%.<\/p>\n

As we can see from the above data, the purchase of housing in Tenerife is well-predicted profitability, as well as high quality of life in comfortable conditions.<\/p>\n

If you would like to know more about our offers, please contact our specialists or find your option in our housing catalog – we are always happy to help you with the choice!<\/p>","protected":false},"excerpt":{"rendered":"

Today, real estate in Tenerife is not just a\u2026<\/p>\n","protected":false},"author":19,"featured_media":459222,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[],"class_list":["post-459221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-in-spain"],"yoast_head":"\nThe Profitability of Real Estate Property in Tenerife: Factors to consider<\/title>\n<meta name=\"description\" content=\"Real estate in Tenerife is not just a beautiful dream, but also a profitable investment. What are the pros of housing bought here for your own year-round living? 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