Some decisions mark true turning points, and buying a home in Tenerife is one of them. In recent years, the largest of the Canary Islands has gained traction in the luxury real estate sector for the host of advantages it offers. A perfect balance of nature, climate, location and service quality mean that its high-end real estate products are attracting investors seeking extraordinary opportunities in exceptional destinations.
Proof of this trend is that the Canary Islands are now one of the Spanish autonomous communities with the highest demand for luxury housing, though its supply only covers 3% of the market. Few properties are available for a growing group of potential clients, most of whom come from Nordic countries. Their first contact with Tenerife as tourists is love at first sight, and then they begin to consider the purchase of a property that will assure them a safe, quiet and comfortable place for their holidays.
Below, we list some of the most outstanding advantages of this destination and its real estate investment possibilities.
Strategic location and easy access
Tenerife is strategically located on the Atlantic Ocean, making it a key point of connection between Europe, Africa and the Americas. European buyers appreciate its accessibility, with frequent direct flights from most major cities on the continent. This is an advantage that not only facilitates frequent visits to the island, but also makes it an ideal location for a holiday rental that can increase short-term returns on investment.
Stable climate and tranquility
Tenerife's climate is undoubtedly one of its greatest assets. With more than 300 days of sunshine a year, mild summer temperatures and mild winters, the Canary Island offers a peaceful winter getaway for outdoor sports such as golf or tennis, and a safe place to retire. In addition, its biodiverse natural environment, featuring beaches, volcanic landscapes, cliffs and forests, provides a variety of outdoor activity options like hiking, biking and watersports, ideal for a healthy lifestyle.
Luxury properties and innovative architecture
The luxury properties in Tenerife are varied and of high quality. From detached villas to spacious apartments, there is a wide range of options to suit all tastes. At Abama Resort Tenerife, innovative architecture is an essential element of each real estate product. In the Las Villas del Tenis community, for example, the terraced terrain is leveraged to advantage so each villa has an excellent view of the golf course and the island of La Gomera. And in our Los Jardines de Abama apartments, contemporary design allows you to contemplate the horizon from any angle, thanks to open-plan layouts bathed in natural light.
Tax incentives and legal stability
Spain offers several tax incentives for foreign investors that make buying a home in Tenerife even more attractive. Corporate tax in Spain is 25%, an average rate within the Euro Zone, but there are several tax exemptions that can reduce the effective tax rate to around 20%. As for Tenerife, the island is part of the Canary Islands Special Zone (ZEC), which has its own economic and fiscal regime under European legislation. Thus, the corporate tax rate is only 4%, and other exemptions can be added, such as those in investment assets.
Continued demand and growth potential
As tourism in Tenerife strengthens and demand for luxury properties continues to rise, the island's real estate market is gaining ever-more-solid long-term growth potential. This means that a real estate investment in Tenerife not only offers a unique lifestyle in the short term, but also the opportunity for future returns through holiday rentals and real estate appreciation.
With its enviable climate, quality architecture, a wide variety of sports and leisure activities within easy reach and attractive tax incentives, buying a home in Tenerife is one of the most attractive options when it comes to property for sale in Spain.
