Tenerife has become Europe’s best place to buy a second home, and this is no passing trend. It’s the result of a combination of factors that other high-profile destinations such as Mallorca, the French Riviera, and the Algarve are unable to match: an exceptional climate year-round, some of the best tax conditions within the European Union, and convenient international connections. Moreover, Tenerife’s residential offer now outshines many of the traditional Mediterranean enclaves, which were designed for a different era and have become weighted down by their own success. More and more European buyers are reaching this same conclusion, and the real estate market in the south of the island confirms it.
Mallorca, the French Riviera, and the Algarve: the problem of seasonality
For decades, Mallorca and the French Riviera have dominated the conversation about where to buy a second home in Europe. These are destinations with history, cultural appeal, and an established international community. But they suffer from a limitation that many buyers discover too late: seasonality. Summer is crowded, winter leaves the area deserted, and the promise of a premium lifestyle fades during the gray months. The Algarve has gained popularity over the past decade, especially among Nordic and British buyers, but its Atlantic winters don’t sustain the experience year-round. Anyone looking for a holiday home they can enjoy in any season without leaving the European Union needs to look a little further south.
An eternal spring climate that maximizes the use of your property
Talking about Tenerife’s climate may sound like a tourist pitch, but it isn’t—or at least not entirely. For anyone deciding where to buy a second home—and, therefore, where they’ll spend weeks or months each year—an average annual temperature between 20 and 26 degrees completely changes the equation. A property in Tenerife is just as enjoyable in January as it is in August, which translates to more days of personal use and, if you join the resort’s rental scheme, more demand for hotel occupation throughout the year. It’s no wonder that Tenerife is known as the Island of the Eternal Spring, and the Costa Adeje, where Abama Resort is located, is its sunniest and driest corner. The sweeping views of the Atlantic and the silhouette of La Gomera island on the horizon are a landscape that never grows old.
Special tax rates within the European Union
This is perhaps the strongest argument for a home purchase in Tenerife, and one that is little known outside of specialized circles. The Canary Islands enjoy a special economic and tax regime within the European Union: the IGIC, the Canarian equivalent of the VAT, stands at 7%, as compared with 21% on the Spanish mainland, and the Canary Islands Special Zone (ZEC) offers one of the most competitive corporate tax rates on the continent, at 4%. For those purchasing high-value property, this difference can be significant, and neither Mallorca nor the French Riviera offer anything comparable; the Algarve, for its part, has seen its former NHR regime undergo a review process. Added to this is the peace of mind that comes with Tenerife being part of the EU, which has a stable legal framework and offers full protection of private property. Yet more reasons why the Canary Islands have established themselves as the best place to invest in real estate in Spain.
Buying within an established resort
There is a significant difference between buying an independent property in a destination and buying within an established resort. In the former case, the owner takes on the management of the property, which can include maintenance, security, and coordinating any requered services. In the latter, everything is taken care of by an in-house team from day one.
Abama Resort is one of the few luxury residential developments in Europe that combines private ownership with permanent access to five-star amenities: a golf course designed by Dave Thomas that is considered one of the best in Spain; Michelin-starred restaurants; a spa; a secluded beach; and an international community that enjoys privacy and discretion. The luxury properties available at the resort - apartments, villas, and building plots - cater to different buyer profiles while maintaining a common architectural standard. And the resort’s rental program allows properties to generate holiday rental income in Tenerife when owners aren’t using them. This income covers a significant portion of maintenance costs and ensures that properties are always in perfect condition for every stay.
Tenerife: The choice international buyers are already making
The market speaks for itself. Demand for luxury properties in southern Tenerife is growing steadily, driven by buyers who compared Mediterranean destinations and ultimately chose the island for reasons that go far beyond the climate. European legal certainty, favorable tax schemes, resort-style amenities, and a natural environment unmatched on the continent all come together in a single location. Adding to this appeal is a new residential phase that Abama will be unveiling throughout 2026, with the option to register for priority access. Anyone wondering where the best place to buy a second home in Europe is should take another look at Tenerife. Explore the luxury homes for sale at Abama and discover firsthand the lifestyle that sets this resort apart in the European residential market.
