Moving to Canary Islands: Guide to Residency & Cost of Living

Moving to Canary Islands has become an increasingly attractive option for expats, retirees, and remote workers looking for year-round sunshine, a relaxed lifestyle, and a lower cost of living. Located off the coast of Africa but part of Spain, the Canary Islands offer a unique blend of European infrastructure and tropical charm, making them one of the best places to live in Spain.

Before embarking on your journey, it’s essential to understand the residency and visa requirements, especially if you’re relocating from outside the EU. Depending on your situation, you may need a Non-Lucrative Visa, Golden Visa, or Digital Nomad Visa. Our expert immigration lawyers specialize in helping expats secure residency in Spain, ensuring a smooth and hassle-free process.

The Canary Islands’ low tax rates, affordable housing, excellent healthcare, and growing expat community create a welcoming environment for newcomers. Whether you’re looking to retire in Spain, work remotely, or invest in property, these islands offer a perfect balance between lifestyle and opportunity.

👉 Need help with your visa application? Contact us today for a free consultation with our legal experts!

Why Move to the Canary Islands?

Moving to the Canary Islands has become an increasingly popular choice for expats, retirees, and remote workers seeking a warm climate, lower cost of living, and excellent quality of life. Located off the coast of Africa but part of Spain, these islands offer a unique mix of European infrastructure, subtropical weather, and a thriving expat community. Here’s why more and more people are choosing to live in the Canary Islands.

A Perfect Subtropical Climate All Year Round

One of the biggest reasons to move to the Canary Islands is the year-round warm weather. Often described as having an “eternal spring,” the Canary Islands enjoy average temperatures between 18°C and 24°C (64°F – 75°F) throughout the year.

Unlike other parts of Spain, where summers can be extremely hot and winters quite cold, the Canary Islands offer stable and mild weather that allows residents to enjoy an outdoor lifestyle. Whether you love hiking, swimming, surfing, or simply relaxing on the beach, the Canary Islands provide ideal conditions for an active and healthy lifestyle.

• No extreme temperatures – no freezing winters or unbearable heatwaves.
• Perfect for outdoor activities like water sports, hiking, and cycling all year round.
• Clean air and natural beauty with stunning landscapes, including volcanic scenery, lush forests, and pristine beaches.

Lower Cost of Living Compared to Mainland Spain 💰

One of the biggest advantages of living in the Canary Islands is the affordable cost of living compared to mainland Spain and other European countries.

• Housing & Rentals: Renting or buying property in the Canary Islands is significantly cheaper than in Madrid or Barcelona. Whether you prefer a beachfront apartment or a quiet villa in the countryside, you’ll find more affordable options here.
• Daily Expenses: Thanks to the Canary Islands’ special tax system (IGIC), VAT is lower than in the rest of Spain, making groceries, dining out, and entertainment more affordable.
• Utilities & Transport: Public transport is efficient and inexpensive, and utility bills tend to be lower than in larger Spanish cities.

✅ Live comfortably with a lower budget compared to major European cities.
✅ Lower taxes (IGIC instead of VAT) make everyday expenses more affordable.
✅ Great value for money when it comes to housing, food, and transportation.

Special Tax Benefits for Residents & Businesses 📉

The Canary Islands offer unique tax advantages, making them an attractive destination for expats, entrepreneurs, and investors. The region benefits from the Zona Especial Canaria (ZEC), a special tax zone with lower corporate taxes and financial incentives for businesses.

• Lower VAT (IGIC at 7%) – significantly lower than the 21% VAT in mainland Spain.
• Attractive tax benefits for freelancers and business owners, including tax reductions for certain industries.
• Investment-friendly environment with incentives for buying property and setting up companies.

If you’re considering starting a business in Spain, the Canary Islands provide one of the most favorable tax regimes in Europe. Our expert immigration and tax lawyers can help you understand the best visa options and legal structures to maximize these benefits.

A Thriving & Welcoming Expat Community 🌍

The Canary Islands are home to a large and diverse expat population, making it easier for newcomers to settle in. Popular locations like Tenerife, Gran Canaria, and Lanzarote attract British, German, and Scandinavian expats, offering a strong support network for foreigners.

Whether you’re looking for international schools, expat social groups, or English-speaking services, you’ll find a well-established international community here.

✅ Large expat population in key cities like Tenerife and Gran Canaria.
✅ Many English-speaking services, including doctors, schools, and businesses.
✅ A friendly and welcoming atmosphere for newcomers.

Excellent Connectivity with Spain & Europe ✈️

Despite being off the coast of Africa, the Canary Islands are well connected to the rest of Spain and Europe.

• Frequent direct flights to Madrid, Barcelona, and major European cities.
• Inter-island transport via ferries and short domestic flights, making it easy to explore the entire archipelago.
• Affordable travel costs – many budget airlines offer cheap flights between the Canary Islands and Europe.

For expats who need to travel frequently or maintain business connections in Europe, the Canary Islands offer both a peaceful lifestyle and excellent accessibility.

Cost of Living in the Canary Islands 💰🏡

One of the biggest advantages of living in the Canary Islands is its affordable cost of living compared to other major Spanish cities and European countries. From housing and groceries to transportation and entertainment, the Canary Islands offer great value for money, making them an attractive destination for expats, retirees, and digital nomads.

How Much Does It Cost to Live in the Canary Islands?

To give you a clear picture of daily expenses, here’s a comparison of the average cost of living in the Canary Islands vs. Madrid vs. Barcelona:

📝 Note: Prices may vary depending on the island, neighborhood, and personal lifestyle.

Why is the Cost of Living in the Canary Islands Lower?

1️⃣ Lower Rent Prices:

• Housing costs in the Canary Islands are 30-50% cheaper than in Madrid or Barcelona.
• Even in popular expat areas like Las Palmas (Gran Canaria) or Santa Cruz (Tenerife), rental prices remain affordable.

2️⃣ Reduced Tax Rates (IGIC vs. VAT):

• The Canary Islands have a special tax system with a lower VAT equivalent (IGIC – Impuesto General Indirecto Canario) at 7%, compared to 21% in mainland Spain.
• This means cheaper groceries, consumer goods, and services for residents.

3️⃣ Affordable Transportation:

• Public transportation is efficient and inexpensive, with inter-island ferries and flights making travel between islands easy.
• Fuel prices are lower compared to mainland Spain.

4️⃣ Low Utility Costs:

• Thanks to the mild climate, energy costs are lower (less need for heating in winter).

Taxes & Financial Benefits for Expats 📉

If you’re planning to move to the Canary Islands, it’s important to understand the financial and tax advantages available to residents:

✅ Lower personal income tax rates compared to other European regions.
✅ Special tax benefits for businesses under the Zona Especial Canaria (ZEC), with corporate tax rates as low as 4%.
✅ Lower VAT (IGIC at 7%) – compared to 21% VAT in mainland Spain.
✅ No wealth tax for foreign investors, making it attractive for property buyers.

💼 Thinking of moving your business to the Canary Islands? Our immigration and tax law experts can help you set up your residency, register your business, and take advantage of the financial benefits of living in Spain’s most tax-friendly region.

📌 Need help with your residency or tax planning? Contact us today for expert advice!

How to Move to the Canary Islands: Residency & Visas

Moving to the Canary Islands requires proper legal planning, especially for non-EU citizens. Whether you’re looking to retire, work remotely, invest, or study, you’ll need the appropriate residency permit or visa to legally live in Spain.

Our expert immigration lawyers specialize in visa applications for expats, ensuring a smooth relocation process for individuals and families moving to the Canary Islands.

Types of Visas Available for Expats in the Canary Islands

• Non-Lucrative Visa – Ideal for retirees and financially independent individuals who do not plan to work in Spain. Requires proof of financial stability and private health insurance.
• Golden Visa – Designed for real estate investors who purchase property worth €500,000 or more, offering a fast-track residency permit.
• Digital Nomad Visa – Perfect for remote workers and freelancers working for companies outside Spain. This visa allows you to live and work legally in the Canary Islands while enjoying the tax benefits of Spain.
• Student Visa – For those who wish to study at a university, language school, or educational institution in the Canary Islands.

💼 Need help applying for a visa? Our legal team specializes in immigration services for expats in Spain. Get in touch today for a free consultation!

Best Places to Live in the Canary Islands

he Canary Islands offer diverse living experiences depending on your lifestyle, budget, and preferences. Here’s an overview of the top locations for expats:

1. Tenerife – Best for Families & Digital Nomads

• Largest island with a well-developed infrastructure.
• Popular with expat families due to international schools, hospitals, and job opportunities.
• Growing digital nomad community with coworking spaces and fast internet.

2. Gran Canaria – Ideal for Professionals & Investors

• Las Palmas de Gran Canaria has one of the largest expat communities in Spain.
• Diverse real estate market, from beachfront apartments to countryside villas.
• Strong economy with business opportunities in tourism, trade, and remote work.

3. Lanzarote – Perfect for Retirees & Nature Lovers

• Relaxed lifestyle with a smaller population.
• Lower cost of living compared to Tenerife and Gran Canaria.
• UNESCO Biosphere Reserve with stunning landscapes and peaceful surroundings.

4. Fuerteventura – Best for Beach Lovers & Water Sports Enthusiasts

• Known for its white sandy beaches and surfing spots.
• Quiet, laid-back island perfect for those looking to escape city life.
• Growing expat and remote worker community due to lower rental prices.

📌 Looking for the perfect place to settle? Contact our team to discuss your residency options in the Canary Islands!

Working in the Canary Islands

The Canary Islands offer a unique job market with opportunities for expats, remote workers, and entrepreneurs. Whether you’re looking for a job in tourism, starting a business, or working remotely, here’s what you need to know:

1. Job Market for Expats

• Tourism & Hospitality – The region’s main economic sector, offering jobs in hotels, restaurants, and travel agencies.
• Technology & Remote Work – Increasing demand for digital nomads and tech professionals.
• Real Estate & Investment – Expanding property market, attracting foreign investors and real estate professionals.

2. Tax Benefits for Entrepreneurs & Freelancers

The Canary Islands are part of the Zona Especial Canaria (ZEC), which offers:

• Corporate tax as low as 4% for qualifying businesses.
• Lower VAT (IGIC at 7%), significantly reducing business costs.
• Tax incentives for startups and international investors.

📌 Thinking of starting a business or relocating as a freelancer? Our expert legal team can guide you through the process and ensure full compliance with Spanish regulations. Get in touch today!

Healthcare & Education in the Canary Islands

1. Healthcare System 🏥

The Canary Islands provide high-quality healthcare, with access to both public and private medical services.

• Public Healthcare (SNS) – Available to EU citizens and Spanish residents. Non-EU residents need private health insurance to qualify.
• Private Healthcare – Offers shorter waiting times and premium services. Required for Non-Lucrative Visa, Digital Nomad Visa, and Golden Visa applicants.

📌 Need help choosing the best health insurance for your visa application? We work with top insurance providers to ensure you meet all legal requirements.

2. Education for Expats 🎓

The Canary Islands offer a range of educational options for expat families, including:

• International Schools (British, American, and IB programs available).
• Public Schools (Spanish curriculum, free for residents).
• Higher Education (Top universities like University of La Laguna & University of Las Palmas).

📌 Relocating with your family? We assist with Student Visas, residency applications, and school enrollments.

Is it expensive to live in the Canary Islands?

No, the Canary Islands have a lower cost of living compared to mainland Spain and other European destinations.

To give you an idea, here’s a cost comparison:

💡 Key reasons why living in the Canary Islands is more affordable:

• Lower rent and housing costs compared to major Spanish cities.
• Special tax benefits (IGIC at 7%) keep consumer prices lower.
• Cheaper transportation and utilities thanks to the mild climate.

📌 Need more information about living costs and residency? Contact our legal experts to learn how to move to the Canary Islands hassle-free.

Pros & Cons of Living in the Canary Islands

✅ Pros

• Lower cost of living compared to mainland Spain.
• Year-round warm weather & outdoor lifestyle.
• Low taxes & financial benefits for residents.
• Large expat community, especially in Tenerife & Gran Canaria.

❌ Cons

• Limited job opportunities in non-tourism sectors.
• Higher costs for imported goods.
• Island life may feel isolated for some expats.

📌 Not sure if the Canary Islands are right for you? Our legal experts can provide personalized relocation advice based on your needs.

Start Your New Life in the Canary Islands

Moving to Canary Islands is an excellent choice for expats, retirees, and remote workers looking for a warm climate, lower cost of living, and a relaxed lifestyle. With favorable residency options, tax incentives, and a growing expat community, the islands offer the perfect mix of comfort, affordability, and adventure.

Many Americans and Europeans are choosing the Canary Islands over mainland Spain, drawn by its subtropical weather, lower taxes, and excellent quality of life. If you’re considering this transition, check out these resources for more information:

📌 Move to Mallorca in 2025
📌 How to Move to Spain from the USA

Our immigration law firm specializes in visa applications, residency permits, and legal assistance for expats. Whether you need a Non-Lucrative Visa, Digital Nomad Visa, or Golden Visa, we ensure a smooth and compliant relocation process.

📌 Contact us today to get expert legal assistance for your move to Spain.