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Living in the Canary Islands: Costs, Tips, and Lifestyle

Discover the pros, cons, and costs of living in the Canary Islands. Make an informed decision about your next move—read the essential guide now!
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May 26, 2024
Ana Fankhauser
May 26, 2024
TABLE OF CONTENTS

Curious about living in the Canary Islands? This guide breaks down costs, shares lifestyle insights, and offers tips for a smooth transition to island life. Learn what to expect and how to prepare.

Key Takeaways

  • The Canary Islands offer a lower cost of living compared to mainland Spain, making them attractive for expats and retirees.
  • The archipelago boasts a diverse climate with over 300 sunny days a year, making it a year-round destination.
  • Healthcare is comprehensive and generally free for residents, with both public and private options available.

Introduction to the Canary Islands

Introduction to the Canary Islands
Introduction to the Canary Islands

The Canary Islands are an enchanting archipelago located off the northwest coast of Africa. This autonomous region of Spain consists of eight main islands, each with its own unique character and charm. Whether it’s the lively streets of Santa Cruz de Tenerife and Las Palmas de Gran Canaria or the serene landscapes of La Gomera and El Hierro, the islands offer a variety for everyone.

Tenerife, being the largest and most populated island, offers a diverse blend of cultures and experiences. The islands are widely recognized for their diverse landscapes, spanning from lush rainforests to arid deserts, offering a stunning backdrop for any adventure. With an average of 2,800 hours of sunshine each year, the Canary Islands boast one of the best climates in the world, making them a year-round destination for sun-seekers.

Governed as an autonomous region under Spanish rule, the Canary Islands enjoy a level of self-governance that allows them to maintain their unique identity while benefiting from the infrastructure and support of mainland Spain. Be it the vibrant city life of Santa Cruz or the tranquil beaches of La Palma, the Canary Islands provide a diverse and welcoming environment for all.

Cost of Living in the Canary Islands

Cost of Living in the Canary Islands
Cost of Living in the Canary Islands

Living in the Canary Islands comes with the delightful perk of a generally lower cost of living compared to mainland Spain. This affordability makes the islands particularly appealing to retirees and expats looking to stretch their euros. A family of four in Tenerife would need around €2,886 monthly, excluding housing, while a single person in Gran Canaria typically requires €1,414 to €1,523.

Rental prices are significantly lower than in major European cities. In Santa Cruz de Tenerife, rental costs are about 68.6% less than in London. Utility costs are about 51% less than in London, and dining out is approximately 50% cheaper than in major UK cities. Groceries are another area where residents can save, with prices around 31.95% lower than in London.

Public transportation is affordable and reliable, especially in well-serviced areas. Whether you choose to travel around the islands by local bus or taxi, the cost won't be prohibitive. These factors make the rough monthly budget manageable and appealing for those considering a move to this sunny paradise.

Finding Accommodation

Searching for a home in the Canary Islands can be both exciting and challenging. Average property prices are about €2,400 per square meter, with standalone homes ranging from €220,000 to over €3 million. Fuerteventura is known to be the cheapest Canary Island to buy property, making it an attractive option for budget-conscious buyers.

For those looking to rent, Tenerife offers rental properties with an average annual rental yield of around 7.5%. However, the transformation of long-term rentals into short-term holiday lets can make finding a permanent home more difficult. Rental properties are often more easily found in tourist areas, though prices may be higher.

The buying process involves a fair amount of paperwork and taxes, with a property transfer tax of 6.5% in the Canary Islands, lower than the 10% in mainland Spain. Using an estate agent is advisable to navigate the complexities of buying property. Visiting different locations helps ensure you find the right fit for your lifestyle.

Healthcare in the Canary Islands

Healthcare in the Canary Islands
Healthcare in the Canary Islands

The public healthcare system in the Canary Islands offers comprehensive care, including primary, specialist, and hospital services, typically free for residents. Expats need to have residency and a SIP card to access these services. Employed, self-employed individuals, and state pension recipients are automatically entitled.

Private healthcare services are also available, and appointments differ from public ones, with individuals seeking private treatment being charged directly. Private medical centers often have staff who speak English and other languages, making it easier for non-Spanish speakers to navigate the system. The healthcare professionals in both sectors are highly qualified and experienced in international care.

Registering for public healthcare involves visiting the nearest Centro de Salud and requesting registration with a doctor. European Health Insurance Card holders can access necessary medical treatment, although costs may apply. The regional health services oversee the quality and safety of healthcare facilities, ensuring high standards.

Weather and Climate

The Canary Islands boast a subtropical climate characterized by:

  • Mild temperatures
  • Pleasant weather throughout the year
  • Over 300 sunny days annually
  • Winter temperatures are rarely below 15°C

The eight islands are prime tourist destinations for good weather seekers.

Gran Canaria, for instance, features diverse microclimates, with the north experiencing temperate conditions while the south is more arid. Generally speaking, the stable weather and mild climate have earned the Canary Islands the nickname ‘eternal spring’.

From the highest peak to the beautiful beaches, the sun shines nearly year-round, making every day feel like a vacation.

Social Life and Community

The social life in the Canary Islands is vibrant and welcoming, thanks to a significant international community of expats, particularly from northern Europe. Locals prioritize close-knit community values, treating neighbors like family, which creates a warm and inclusive atmosphere. Newcomers can easily find support networks through social groups, international schools, and community events.

Engaging in local traditions and casual gatherings is key to integrating into island life. Festivals like Carnival play a significant role in fostering social bonds. Community interactions often take place outdoors, facilitated by the islands’ pleasant climate.

Digital nomads will find Las Palmas offering co-working spaces, networking events, and a vibrant local vibe. The LGBTQ+ scene is also welcoming, with numerous venues and events, especially in Gran Canaria. Learning basic Spanish can enhance the living experience, although English is commonly spoken in tourist areas.

Employment Opportunities

The hospitality industry in the Canary Islands offers numerous job opportunities, attracting expats in various roles. There’s also an emerging trend of professionals choosing to work remotely from Spain. Legal workers enjoy at least 30 days of vacation and medical coverage, making employment here appealing.

Becoming self-employed requires securing appropriate paperwork and a work permit. Entrepreneurs meeting specific criteria can benefit from a fast-track visa, easing residency requirements. Self-employed individuals can access various financial incentives to support their business ventures.

Being on the island where employment is sought is often advantageous when searching for a job. The thriving and diverse community in the Canary Islands can be helpful for networking while job searching.

Education and Schools

The Canary Islands offer a mix of private, partially funded 'concertados' and state schools to accommodate different educational needs. Private schools, often religiously affiliated, charge varying fees, while ‘concertados’ schools are partially funded and typically lower-cost. Spanish state schools do not have uniform requirements, although some schools may enforce certain dress codes.

Families moving to the Canary Islands should consider bilingual and international schools for English-speaking children, factoring in fees and curricula. Homeschooling is permitted in Spain, but parents must ensure compliance with national educational standards.

Transportation and Island Hopping

Transportation and Island Hopping
Transportation and Island Hopping

Getting around the Canary Islands is convenient, with various transportation options available:

  • Local buses, known as wa-wa buses, provide an efficient network for travel.
  • Rental car agencies like Avis, Cicar, Hertz, and Europcar are available throughout the airports on the islands.
  • Local taxi services like Taxi La Palma provide affordable transport options. Their rates are generally reasonable.

Frequent inter-island flights are provided by Binter Canarias and Islas Airways. Ferry services are available daily, but schedules can be affected by weather and demand. Residents can benefit from discounted fares offered by some ferry companies, such as Naviera Armas and Fred Olsen.

Inter-island flights are invaluable for expats for work and leisure, thanks to frequent services and resident discounts. Whether you’re traveling for business or exploring the beautiful beaches, the Canary Islands’ transportation system makes it easy to get from one island to another.

Legal and Residence Requirements

Relocating to the Canary Islands involves the same visa requirements as moving to Spain. The type of visa required depends on personal situations such as retiring, finding a job, being self-employed, or being a digital nomad. A permanent or long-term residency visa is needed for long-term stays and to work in the Canary Islands.

Non-EU residents who wish to live in the Canary Islands for longer than 90 days must apply for residency and a visa. Long-term residency requires a work and residence visa, which must be applied for from the applicant’s home country. A NIE (Número de Identificación de Extranjero) number is crucial for managing tax and administrative responsibilities.

Seeking professional advice when obtaining paperwork for moving to the Canary Islands is recommended. Non-EU residents should consider hiring an English-speaking lawyer and a gestor to assist with residency paperwork in Spain.

Taxation for Expats

Expats staying in the Canary Islands for over 90 days must obtain a valid residency permit, affecting their tax status. Income tax rates in the Canary Islands range from 18.5% to 49.5%, depending on earnings. Expats from EU countries benefit from a reduced income tax rate of 19%, compared to the standard non-resident rate of 24%.

Business tax in the Canary Islands can be as low as 4% within the Special Zone, significantly lower than the 25% rate in mainland Spain. The General Indirect Tax (IGIC) rate is set at 7%.

Expats are obligated to pay taxes in Spain, and tax rates in the Canary Islands are generally lower compared to mainland Spain and Europe.

Leisure and Recreation

The Canary Islands are a haven for leisure and recreation, offering activities for all tastes. Fuerteventura and Lanzarote are popular for surfing, while Gran Canaria offers windsurfing, surfing, and snorkeling. The islands host several annual surfing competitions, showcasing the region’s dynamic surf culture.

The waters surrounding the Canary Islands offer abundant diving opportunities, featuring varied marine life and underwater caves. Hiking enthusiasts will find La Gomera, Lanzarote, and La Palma ideal for exploring stunning volcanic landscapes. The Chinijo Archipelago and El Hierro are known for their unique wildlife experiences.

Gran Canaria and Tenerife boast vibrant nightlife, while La Palma is recommended for couples due to its romantic sunsets. Hidden gems in Lanzarote include the remote beaches of Papagayo, known for their scenic beauty. Whether seeking adventure or relaxation, the Canary Islands cater to all preferences.

Safety and Security

The Canary Islands are generally safe for living, even at night, though usual precautions should apply. Ensure your accommodation has proper security measures, such as locks on all doors and windows. Be wary of scams involving offers for timeshares or holiday clubs that may not be legitimate.

Emergency services can be reached by dialing 112 for immediate assistance. In case of an emergency, the British Consulate can provide necessary support and information. To report a crime, you can call 902 102 112, and for immediate medical assistance, you can call 012.

For large public events, keep a close watch on your belongings to prevent theft.

Sustainability and Environmental Awareness

Mass tourism has brought both benefits and challenges to the Canary Islands. While tourism has boosted the local economy, it has also led to water shortages and degradation of natural areas. The proliferation of short-term rentals has significantly reduced the availability of long-term housing for residents, exacerbating the housing crisis.

The local government is exploring measures to limit short-term rental licenses and enhance wages for workers impacted by tourism. Protests have emerged advocating for a more sustainable tourism model that benefits both locals and the environment.

Residents and visitors can contribute to preserving the islands’ natural beauty and resources by being mindful of these challenges and supporting sustainable practices.

Best Islands for Different Lifestyles

Best Islands for Different Lifestyles
Best Islands for Different Lifestyles

Choosing the best island in the Canary Islands depends on your lifestyle and preferences. La Graciosa is suggested for those seeking lower living costs compared to other islands. Beach lovers will find Fuerteventura, Gran Canaria, and Tenerife among the best options with their stunning beaches and water sports.

Diving enthusiasts will favor the Chinijo Archipelago and Lanzarote for their rich marine life and underwater landscapes. Gran Canaria and Tenerife are recommended for shopping and vibrant nightlife. If you’re into hiking, La Gomera, Lanzarote, and La Palma offer breathtaking trails and volcanic landscapes.

La Palma is highly recommended for a romantic getaway due to its serene environment and sunsets. The Chinijo Archipelago and El Hierro offer unique wildlife experiences. Whether you’re looking for adventure, relaxation, or a blend of both, the Canary Islands have an island that fits your lifestyle.

Summary

In summary, living in the Canary Islands offers a unique blend of affordability, beautiful landscapes, and a vibrant community. From the lower cost of living and diverse accommodation options to the excellent healthcare and stable weather, there are many reasons why the Canary Islands are a desirable place to call home.

Whether you’re drawn to the stunning beaches, the dynamic social life, or the employment opportunities, the Canary Islands cater to a wide range of preferences and lifestyles. As you consider making the move, remember to embrace the local culture, be mindful of environmental sustainability, and enjoy the endless adventures that await you in this Atlantic paradise.

Frequently Asked Questions

What is the cost of living in the Canary Islands compared to mainland Spain?

You'll find that the cost of living in the Canary Islands is generally lower than in mainland Spain, with a family of four in Tenerife needing about €2,886 per month, while a single person in Gran Canaria usually requires between €1,414 and €1,523.

How do I access healthcare in the Canary Islands as an expat?

To access healthcare in the Canary Islands as an expat, you'll need residency and a SIP Card for free public healthcare, which is available if you're employed or on a state pension. Alternatively, you can explore private healthcare options if that suits you better.

What are the transportation options for island hopping in the Canary Islands?

For island hopping in the Canary Islands, you can choose from local buses, taxis, and car rentals, but the most popular options are the frequent inter-island flights and daily ferries. Companies like Binter Canarias, Naviera Armas, and Fred Olsen make your travel smooth and easy!

What are the legal requirements for long-term residency in the Canary Islands?

To stay long-term in the Canary Islands, non-EU residents need to apply for a residency visa and obtain a NIE number for tax and administrative purposes. It’s essential to handle these requirements to enjoy your extended stay peacefully.

Are there any tax benefits for expats in the Canary Islands?

Absolutely, expats in the Canary Islands can enjoy some nice tax perks, like a reduced income tax rate of 19% for those from the EU and business taxes as low as 4% in the Special Zone. It's definitely a great spot for entrepreneurs looking to make the most of their finances!

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