Canary Islands property counsel — reviewed September 25, 2026
Canary Islands Property Lawyer | For U.S. Buyers
Spain Law NYC provides Spanish-law counsel for U.S. buyers purchasing property in Tenerife and the wider Canary Islands, including due diligence, contract review, closing coordination and Land Registry follow-up. Spanish residency is not a prerequisite simply to buy property, but a U.S. buyer is a non-EU buyer and the property must be checked for any applicable military-authorization rules before the transaction is treated as unrestricted. The Canary Islands also have their own indirect-tax framework, so regional tax and planning issues must be reviewed separately from mainland assumptions.
Constantin Razvan Gospodin Florea, Spain-licensed attorney — ICATF Colegiado No. 5961.
What is IGIC, and how much property tax do you pay in the Canary Islands?
The Canary Islands operate under a special economic and fiscal framework (see below), which replaces mainland Spain's VAT (IVA) with the islands' own indirect tax — IGIC — on new-build property. Resale property is taxed differently again. The two most common scenarios:
| Purchase type | Tax | Rate |
|---|---|---|
| New build (from developer) | IGIC (Impuesto General Indirecto Canario) — replaces mainland IVA | 7% |
| Resale (second-hand) | ITP (Impuesto sobre Transmisiones Patrimoniales) — same tax as the rest of Spain, regional rate | 6.5% |
Legal basis: IGIC is set by Ley 20/1991 (general rate 7%, in force since January 1, 2020); ITP for the Canary Islands is set by Decreto Legislativo 1/2009. A notarial document tax (AJD) may also apply depending on the specific transaction — its rate is not a single flat figure and is confirmed for your specific deed at engagement, not quoted generically here. Tax questions on this matter are handled through our network of professional collaborators in Spain, not directly by Spain Law NYC.
Two more costs apply beyond the purchase tax
Annual property tax (IBI, Impuesto sobre Bienes Inmuebles): set by each municipality within a national legal range of 0.4%–1.1% of the property's cadastral value (Art. 72, Real Decreto Legislativo 2/2004). The exact rate depends on the municipality and is confirmed for your specific property, not quoted generically here.
Notary and Land Registry fees: these follow an official regulated fee scale (Real Decreto 1426/1989 and 1427/1989, as amended) that decreases as a percentage of price as the property's value increases — it is not a single flat percentage. We confirm the total for your specific purchase before you sign.
Can a U.S. buyer need military authorization in the Canary Islands?
Potentially, yes — depending on the property. Spain's Ley 8/1975 and its implementing regulation treat island territories as zones in which acquisitions by non-EU foreign buyers can be subject to Defence-related restrictions and prior military authorization. The statutory exemption applies to qualifying EU nationals; it should not be extended automatically to a U.S. buyer.
The current administrative framework is more nuanced than saying every non-EU purchase needs authorization. Ministry of Defence Order of Service 1/2021, as applied in published decisions of the Dirección General de Seguridad Jurídica y Fe Pública, excludes property that is in the basic situation of suelo urbanizado under the land-law criteria addressed by that order. Properties outside that exclusion can still require authorization or a favorable Defence report.
For that reason, the correct due-diligence question is not simply whether the buyer is American. The file should confirm the property's land classification, planning position and any Defence restriction that affects the specific parcel before signing or closing.
Primary legal sources
Ley 8/1975, arts. 18 and 20 and its additional provision; Real Decreto 689/1978, arts. 32, 37 and 40; and the DGSJFP resolution of November 27, 2025, published in the BOE in 2026, discussing Order of Service 1/2021 and the urbanized-land exclusion.
Coastal-law checks remain separate
Spain's coastal law (Ley de Costas) can also matter on island property, independently of the Defence analysis. The dominio público marítimo-terrestre itself — the beach, the shoreline, and the sea — cannot be privately owned. The servidumbre de protección can restrict construction or alterations on otherwise private land near the coast.
In the Canary Islands, permits for construction or activity within the servidumbre zone are processed through the regional government (Decreto 171/2006), under the applicable national coastal framework.
A coastal or near-coastal purchase therefore needs property-specific due diligence on the legal boundary and planning status before the buyer relies on a listing, cadastral description or existing construction.
Coastal sources: Ley 22/1988 de Costas (as amended), Reglamento General de Costas (Real Decreto 876/2014), and Decreto 171/2006. Property-specific conclusions require review of the actual parcel and records.
What is the REF canario, and does it affect my purchase?
The REF canario (Régimen Económico y Fiscal de Canarias) is the special economic and fiscal framework — recognized in the Spanish Constitution and EU treaties — that governs how the Canary Islands are taxed differently from mainland Spain. IGIC itself (see above) was created under this framework by Ley 20/1991.
For a straightforward home purchase, the REF canario's most direct effect is the IGIC/ITP treatment above. The REF canario also includes business and investment incentives — such as the RIC (Reserva para Inversiones en Canarias, Ley 19/1994, art. 27) and the ZEC (Zona Especial Canaria, Ley 8/2018) — which may be relevant if you are structuring a business, rental operation, or larger investment through the islands rather than a straightforward home purchase. Whether any of these apply to you is assessed case by case, not as a blanket rule.
Source: Ley 20/1991 (IGIC), Decreto Legislativo 1/2009 (ITP/AJD), Ley 19/1994 art. 27 (RIC), Ley 8/2018 (ZEC). Discussed as planning information, not tax advice.
Buying in Tenerife and the wider islands
Spain Law NYC is the U.S.-facing entry point for American buyers. Constantin Razvan Gospodin Florea's Spain-based practice is International Legal Services (ILS Tenerife) in Adeje, giving U.S. clients continuity between the initial cross-border planning and the Spain-side property work.
The purchase process — identification and tax formalities, due diligence, contract review, notarial deed and Land Registry follow-up — follows Spanish law, while Canary Islands taxes, Defence restrictions and coastal/planning issues require property-specific checks. See the full walkthrough on the main Property Purchase Counsel page.
See the full property purchase processBuying on the mainland instead?
See the general guide to buying property in Spain as an American and the legal due-diligence issues that should be checked before signing.
Read: Can Americans Buy Property in Spain?Structuring wealth or a business in Spain?
If your Canary Islands purchase is part of a larger relocation or investment strategy, see our Cross-Border Tax Coordination service.
See Cross-Border Tax CoordinationFrequently Asked Questions
Is IGIC the same as IVA (VAT)?
Do I still pay ITP if I buy a resale property in the Canary Islands?
Can Americans buy property in Tenerife without Spanish residency?
Do U.S. buyers always need military authorization to buy in the Canary Islands?
Buying in the Canary Islands? Start with due diligence.
Book a free 15-minute introductory call to discuss your general property goals and service fit. Property-specific legal analysis, document review, and strategy are provided through a paid consultation or active engagement.
Book an introductory callSources, review date & related guidance
Last reviewed: September 25, 2026. Official sources control current procedural requirements. Spain Law NYC explains the Spanish-law context and the scope of professional assistance; requirements can change, so the linked authority should be checked before filing or acting.