A practical guide for expats moving to the Canary Islands (Islas Canarias) — Spain’s Atlantic archipelago off the north-west coast of Africa, with a year-round mild climate often cited among the world’s best, a special economic and fiscal regime distinct from mainland Spain (REF and ZEC), IGIC instead of mainland IVA, and one of Europe’s largest digital nomad communities (especially Las Palmas de Gran Canaria). This guide covers the seven main islands: Tenerife, Gran Canaria, Lanzarote, Fuerteventura, La Palma, La Gomera and El Hierro. Whether you’re heading to Las Palmas as a DNV remote worker, a Tenerife or Fuerteventura retiree settlement, or a quieter island lifestyle, this walks through the visa routes, healthcare, the Canarian tax framework, schools and the insurance arrangements that matter most. We don’t recommend specific insurers on this page; we explain options based on where you’re settling and your situation, in plain English, seven days a week.
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Get a QuoteTalk to an AdviserThe Canary Islands (Islas Canarias) are one of Spain’s seventeen autonomous communities. The archipelago sits in the Atlantic Ocean off the north-west coast of Africa, roughly 100km from Morocco and 1,800km from Madrid. The autonomous community comprises seven main islands organised into two provinces: Las Palmas (Gran Canaria, Lanzarote, Fuerteventura) and Santa Cruz de Tenerife (Tenerife, La Palma, La Gomera, El Hierro). Total population around 2.2 million.
The Canary Islands offer something genuinely different from mainland Spanish destinations: a year-round mild climate often cited among the world’s best (eternal spring — daytime averages 20–26°C nearly every month), an Atlantic island lifestyle quite different from Mediterranean Spain, a special economic and fiscal regime (REF, including ZEC) distinct from mainland Spain that meaningfully reduces certain corporate taxes for qualifying businesses, and IGIC at 7% standard rate instead of mainland Spain’s 21% IVA. Combined with one of Europe’s largest digital nomad communities (particularly Las Palmas de Gran Canaria), the Canaries have become one of Spain’s most distinctive expat destinations.
This guide covers each main island, the Canarian tax framework, healthcare, schools, lifestyle and the insurance arrangements that matter most.
Year-round climate — daytime averages 20–26°C across nearly every month of the year. One of the world’s most-cited mild year-round climates, moderated by Atlantic trade winds (alisios) and the cold Canary Current.
Canarian special tax framework — Canarias has the Regimen Económico y Fiscal de Canarias (REF) including the Zona Especial Canaria (ZEC) for qualifying companies, and IGIC at 7% standard rate instead of mainland IVA at 21%. Specific implications need Canarian-specialist tax advice — this is not mainland Spanish tax.
European flight connections — the major Canary airports (TFS, TFN, LPA, ACE, FUE) have extensive European connections, while smaller islands rely more on inter-island and mainland Spanish routes. Long-haul typically routes via Madrid or European hubs.
One of Europe’s largest DNV communities — Las Palmas de Gran Canaria in particular has become one of Europe’s leading digital nomad destinations.
Established expat communities — substantial British, German, Scandinavian, Dutch and increasingly American communities across the islands, with mature English-speaking infrastructure in major resort and city zones.
Spanish healthcare quality — the Servicio Canario de Salud (SCS) is part of the Spanish public healthcare system. Strong public hospital infrastructure in Tenerife and Gran Canaria. Spanish-regulated private cover available across all islands.
Mediterranean to North African food influence — distinctive Canarian cuisine combining Spanish, African and Latin American influences. Strong fish culture, the famous papas arrugadas with mojo, distinctive Canarian wines.
Outdoor lifestyle — surfing, kitesurfing, windsurfing, hiking, volcanoes, beaches, world-class cycling routes, year-round swimming.
Tenerife is the largest Canary Island by area and population (around 950,000). Dominated by the Teide volcano (3,718m, Spain’s highest peak), which creates a meaningful microclimate divide between the wetter, greener north and the drier, sunnier south.
The provincial capital, population around 207,000. Working Spanish port city with cultural depth (Auditorio de Tenerife by Calatrava, Museum of Anthropology, Carnaval de Santa Cruz). Mixed Spanish residential community with growing international remote-worker presence. Lower property prices than the tourist south.
UNESCO World Heritage historic city around 10km from Santa Cruz. University city (Universidad de La Laguna), elegant historic architecture, year-round Spanish-character residential community. Cooler microclimate than the coastal zones.
Historic resort town on the northern coast. Substantial year-round British and German communities, distinctive Loro Parque attraction, traditional Spanish-port character mixed with international resort infrastructure.
The southern coast major resort zone. Costa Adeje is the more upmarket end (luxury hotels, La Caleta), Los Cristianos and Playa de las Américas more mass-tourist focused. Substantial year-round British, German, Belgian, Scandinavian and Irish communities. International schools nearby (Wingate School, British School of Tenerife).
Inland southern Tenerife with substantial year-round retiree communities, golf resorts, lower prices than the coastal zones.
Windsurfing and kitesurfing capital with strong year-round community of water sports enthusiasts.
Historic towns in the north Tenerife interior with distinctive Canarian architecture, lower prices, more authentic Spanish-Canarian character.
Gran Canaria is the second-largest Canary Island by population (around 850,000), with Las Palmas as the largest city of the archipelago.
The capital of Gran Canaria and one of the two co-capitals of the Canary Islands. Population around 380,000. One of Europe’s leading DNV destinations (see Las Palmas DNV community). Distinct neighbourhoods:
Second-largest Gran Canaria city, mixed industrial and residential character. Lower property prices than Las Palmas.
The major tourist resort zone with substantial year-round British, German, Scandinavian, Dutch and other European communities. Playa del Inglés and Maspalomas have particularly strong year-round international communities. International schools nearby.
Smaller southern coastal and inland towns with mixed Spanish and international communities at lower prices than the resort centres.
South-western coastal resort towns with year-round international communities.
The second-largest Canary Island by area, the closest to Africa, sparsely populated (around 120,000) and known for spectacular sandy beaches, wind, and a quieter lifestyle than Tenerife or Gran Canaria.
The northern resort town with substantial year-round British, German and Italian communities. Beaches, water sports, restaurants, established expat infrastructure.
The capital and administrative centre. More authentically Spanish, lower property prices than the resort zones.
Central coastal resort with substantial year-round British, German and Italian communities.
Southern coastal resort zones with strong international communities. Long beaches, water sports culture.
La Oliva, Betancuria (the historic capital), Tuineje and smaller villages offer quieter Spanish-island life at very low cost.
Distinctive volcanic landscape island (around 155,000 population) with strong artistic and architectural identity shaped by César Manrique’s lifelong influence on the island’s built environment. UNESCO Biosphere Reserve.
The capital, working Spanish town with port and authentic Spanish character. Lower property prices than tourist zones.
The major tourist resort with substantial year-round British, Irish, German and Dutch communities. Established expat infrastructure.
North-coast resort with year-round international community, originally designed with César Manrique input.
South-coast resort with growing international community and ferry connection to Fuerteventura.
Inland municipalities and villages with quieter lifestyle and strong volcanic landscape access (Timanfaya National Park).
The fifth-largest Canary Island (around 84,000 population), known as “La Isla Bonita” for its dramatic volcanic landscape, dense pine forests, deep ravines and UNESCO Biosphere Reserve status. The 2021 Cumbre Vieja eruption affected the south-west of the island; recovery and reconstruction continue.
The capital, historic colonial architecture, working port, distinctive Canarian character. Year-round Spanish residential community with growing alternative-lifestyle and remote-worker presence.
Western La Palma’s main town, near the most-affected Cumbre Vieja zones. Strong expat communities particularly in the surrounding agricultural areas (banana cultivation heartland).
Garafía, Puntagorda, Tijarafe and other northern villages host substantial Northern European retiree and lifestyle-mover communities. Stargazing tourism is significant given La Palma’s Starlight Reserve status and the Roque de los Muchachos Observatory.
Small island (around 22,000 population) with distinctive whistled language (Silbo Gomero, UNESCO Intangible Cultural Heritage) and the Garajonay National Park (UNESCO laurel forest). Quieter lifestyle, smaller but established Northern European retiree and lifestyle-mover communities particularly in Valle Gran Rey.
The smallest and westernmost main Canary Island (around 11,000 population). UNESCO Biosphere Reserve, known for renewable energy self-sufficiency (the Gorona del Viento wind-and-pumped-hydro project). Tiny expat community, very quiet lifestyle.
The Canary Islands have one of the world’s most-cited mild year-round climates. Daytime averages 20–26°C across nearly every month. Winter daytime around 20–22°C, summer daytime around 24–28°C. Sea temperature 18°C in winter, 23°C in summer.
The Atlantic trade winds (alisios) blow consistently from the north-east, creating two distinct climate zones on the larger islands:
Tenerife’s Teide (3,718m) and the Sierra de Anaga, plus the central elevated zones of Gran Canaria, La Palma and La Gomera, experience meaningfully different weather including occasional winter snow at altitude.
The climate is genuinely different from Mediterranean Spain. Trade-wind cooling means peak summer is rarely above 30°C on the coast even in July-August. Winter is notably warmer than mainland Spain. Year-round outdoor lifestyle is genuinely sustainable.
Las Palmas de Gran Canaria has, over the past decade, become one of Europe’s largest digital nomad destinations. Drivers:
The Nomad City conference held annually in Las Palmas is one of Europe’s major digital nomad events. Other islands (Tenerife, Fuerteventura) also have growing DNV communities but Las Palmas remains the established centre.
For non-EU students enrolling at recognised Canarian institutions, the standard Spanish student visa applies. See our student guide guide.
Standard Spanish visa framework applies. The Canarian special tax framework (REF, ZEC, IGIC) does not change the visa framework but affects tax planning post-arrival.
Standard couple threshold around EUR 36,000/year. Canary Islands cost of living typically supports comfortable couple lifestyles around EUR 2,000–3,000/month including accommodation and Spanish-regulated health insurance — generally more affordable than mainland coastal Spain at similar tier.
Standard Spanish-regulated DGSFP-authorised requirements apply at the visa stage: sin copago, sin carencias, annual upfront cover, repatriation where required, bilingual EN/ES certificate.
The Servicio Canario de Salud (SCS) is part of the Spanish public healthcare system. The main public hospitals are in Tenerife and Gran Canaria; smaller islands have local hospitals with specialist referral typically to the major islands or sometimes mainland Spain. Private network depth is strongest in Tenerife and Gran Canaria; smaller islands may require referral or travel for non-routine care.
Indicative monthly premium ranges (same Spain-wide framework):
Each main island has at least one public hospital plus selected private facilities. Complex care typically refers to Tenerife or Gran Canaria; some specialist care routes to mainland Spain.
The Canary Islands have a special economic and fiscal framework distinct from mainland Spain, recognised by EU law as an outermost region (OR) of the EU.
The overarching framework setting out Canarian-specific tax provisions. Originates from historical recognition of the islands’ remote location and reduced economic competitiveness.
For qualifying ZEC entities and qualifying income, ZEC offers a substantially reduced corporate tax rate (currently 4%) for a defined period, subject to strict approval conditions including minimum investment, minimum job creation, qualifying activity sectors and headquartering in the Canaries. AEAT lists ZEC as part of the Canary Islands corporate tax regime. For qualifying tech and remote-work businesses, ZEC can offer meaningful Spanish corporate tax benefits.
The Impuesto General Indirecto Canario (IGIC) is the Canarian general indirect tax, applied instead of mainland Spain’s IVA. Standard rate currently 7% (vs IVA 21%), with reduced and increased rates depending on the product or service. The lower IGIC rate makes consumer goods and services typically cheaper in the Canaries than mainland Spain.
A Canarian-specific tax on imports of certain goods, replacing some EU import procedures.
National IRPF applies in the Canaries, with the Canarian regional component setting some specific deductions and adjustments. Canarian residents typically pay overall lower IRPF than equivalent mainland residents at most income bands.
National wealth tax framework applies, with Canarian regional adjustments. Inheritance tax has Canarian-specific reductions for direct family. The Canarian position is generally less generous than Madrid or Andalusia but more favourable than some other regions. Verify with Canarian-specialist tax advice.
The Special Expatriate Regime is a national regime; its application in the Canaries follows the standard national framework. Beckham Law election remains relevant for qualifying applicants moving to the Canaries.
For employees and retirees, the most meaningful day-to-day impact is the lower IGIC making consumer goods cheaper. For business owners and remote-work entrepreneurs, ZEC may offer significant corporate tax benefits if you can structure your business to qualify. For all Canary movers: engage a Canarian-specialist tax adviser. Mainland Spanish tax assumptions don’t translate directly.
Indicative examples. Tax outcomes depend on full personal circumstances and current rules — these are illustrative, not advisory.
National IRPF with Canarian adjustments applies. Under UK-Spain treaty, most private pensions and state pension income generally taxable in Spain once tax resident; some government-service pensions may remain taxable in the UK. IGIC at 7% saves meaningfully on day-to-day consumer spending vs mainland 21% IVA. Apply for S1 for SCS access where eligible.
National Beckham regime applies: flat 24% on Spanish-sourced income. Combined with IGIC savings on day-to-day spending, the net cost-of-living + tax position is among Europe’s most attractive for higher-earning DNV holders.
ZEC offers 4% corporate tax on qualifying ZEC profits (vs national 25% standard corporate rate). Specific qualifying criteria are strict — specialist Canarian tax advice essential before relocation.
Standard purchase costs apply with Canarian-specific ITP rate. Verify the current rate for your specific island. New-build properties in the Canaries are subject to IGIC (7%) plus AJD instead of mainland IVA (10%) plus AJD — making new-build property purchases meaningfully cheaper than mainland equivalents at similar price points.
Las Palmas central rental market has tightened significantly given the DNV demand. Resort-zone rentals (Costa Adeje, Maspalomas) vary by season substantially. Standard LAU framework applies.
Canarian property purchase costs include Canarian-specific ITP for resale, IGIC + AJD for new builds (instead of mainland IVA + AJD), notario, registro, abogado/gestoría. The lower IGIC on new builds (7%) vs mainland IVA (10%) is a meaningful structural advantage for new-build buyers.
For a typical EUR 200,000 resale apartment in Las Palmas (Las Canteras or central):
For new builds, IGIC at 7% applies instead of mainland IVA 10%, saving EUR 6,000 on a EUR 200,000 new-build purchase compared with mainland equivalents.
Empadronamiento at the relevant municipality — each island municipality has its own town hall (Las Palmas, Santa Cruz de Tenerife, Adeje, Arona, San Bartolomé de Tirajana, Mogán, La Oliva, Yaiza, etc.). Required for TIE, local Servicio Canario de Salud, school enrolment.
The major airports (TFS, TFN, LPA, ACE, FUE) have extensive European connections, while smaller islands rely more on inter-island and mainland Spanish routes. Long-haul travel typically routes via Madrid or European hubs.
Binter Canarias and Canaryfly operate inter-island flights. Naviera Armas and Fred Olsen operate ferries between the islands. Inter-island travel is generally affordable and frequent.
The Canaries use WET (Western European Time), one hour behind mainland Spain (CET). Often forgotten by mainland Spaniards visiting and by mainland-Spain businesses.
Year-round beach and swimming culture. Surfing (north Tenerife, La Pared Fuerteventura, El Confital Las Palmas, Playa de Famara Lanzarote). Kitesurfing and windsurfing (El Medano Tenerife, Sotavento Fuerteventura). Diving across all islands.
Teide National Park (Tenerife, UNESCO), Caldera de Taburiente (La Palma), Timanfaya (Lanzarote, volcanic landscape), Garajonay (La Gomera, UNESCO laurel forest). The GR 131 long-distance trail crosses several islands. World-class hiking infrastructure.
The islands host pro and amateur cycling year-round given the climate. Mountain climbs (Teide road from coast to 2,400m is one of Europe’s most-challenging climbs), coastal routes, hill terrain.
La Palma has UNESCO Starlight Reserve status. Roque de los Muchachos Observatory hosts major international telescopes. The Teide Observatory on Tenerife similarly hosts world-class astronomy infrastructure.
Santa Cruz de Tenerife’s Carnaval is one of the world’s largest after Rio de Janeiro’s. Las Palmas, Maspalomas and other islands also host major Carnaval celebrations.
Distinctive Canarian cuisine: papas arrugadas with mojo rojo and mojo verde, gofio (toasted grain flour), Canarian fish (cherne, vieja), goat’s cheese, wines from Lanzarote volcanic soils. African and Latin American influences alongside Spanish base.
UK pensioners with S1 entitlement may use S1 + Servicio Canario de Salud as their primary healthcare, often with Spanish-regulated private top-up. Spanish-regulated private cover is still required at the NLV visa stage for non-EU applicants.
Complex specialist care may route between islands or to mainland Spain. Some treatments require travel to Tenerife or Gran Canaria from smaller islands.
Consumer goods at 7% IGIC vs 21% mainland IVA produces a meaningful cost-of-living saving across the day-to-day spending basket.
For Canary Islands expats:
Spanish-regulated cover for Canary Islands expats. English-speaking advisers, seven days a week.
Get a QuoteTalk to an Adviser247 Expat Insurance helps expats moving to the Canary Islands. English-speaking advisers, seven days a week.
Get a QuoteTalk to an AdviserYes — the Canaries have the Regimen Económico y Fiscal de Canarias (REF) framework including the Zona Especial Canaria (ZEC) for qualifying companies (4% corporate tax) and IGIC at 7% instead of mainland IVA at 21%. National Spanish taxes (IRPF, wealth tax, inheritance tax) apply with Canarian-specific adjustments. Engage Canarian-specialist tax advice.
Daytime averages 20–26°C across nearly every month. Winter 20–22°C daytime, summer 24–28°C. Trade winds moderate temperatures. Among the world’s most stable year-round climates.
Las Palmas de Gran Canaria is one of Europe’s leading DNV destinations — mature coworking infrastructure, strong international community, Nomad City conference, excellent fibre, beach access. Tenerife, Fuerteventura also have growing DNV communities.
Tenerife south (Costa Adeje, Los Cristianos, Golf del Sur), Gran Canaria south (Maspalomas, Playa del Inglés, Meloneras), Fuerteventura (Corralejo, Caleta de Fuste), Lanzarote (Puerto del Carmen, Playa Blanca) all have substantial year-round retiree communities.
The Zona Especial Canaria offers qualifying ZEC entities a 4% corporate tax rate on qualifying income, subject to strict approval conditions (minimum investment, minimum job creation, qualifying activity sectors, headquartered in the Canaries). For qualifying tech and remote-work businesses, ZEC can offer meaningful Spanish corporate tax benefits.
The Canarian general indirect tax, applied instead of mainland Spain’s IVA. Standard rate currently 7% vs mainland IVA 21%. Makes consumer goods and services typically cheaper in the Canaries.
Yes — Beckham Law is a national regime applying throughout Spain including the Canaries. Election within 6 months of Spanish social security registration.
The Canaries use WET (Western European Time), one hour behind mainland Spain (CET). Important for video calls with mainland Spanish contacts and convenient for European clients in the morning.
Part of the Spanish public healthcare system. Strong public hospital infrastructure on Tenerife and Gran Canaria. Smaller islands have local hospitals with specialist referral to the major islands or mainland.
Yes — Binter Canarias and Canaryfly operate inter-island flights; Naviera Armas and Fred Olsen operate ferries. Inter-island travel is affordable and frequent.
The 2021 Cumbre Vieja eruption affected the south-west of La Palma. Recovery and reconstruction continue. Other parts of La Palma and the wider Canary Islands were not affected by the eruption.
Yes — the largest Anglophone community across the islands, particularly Tenerife south, Gran Canaria south, Lanzarote and Fuerteventura. Mature English-speaking medical, legal, banking and everyday-life infrastructure in resort zones.
Wingate School, British School of Tenerife (Tenerife), Trinity School, British School of Gran Canaria, The American School Las Palmas, Colegio Alemán Alberto Durero, Lycée Français René Verneau (Gran Canaria). Plus several across Fuerteventura and Lanzarote.
Same Spain-wide framework: indicative monthly EUR 40–80 at 30, EUR 130–200 at 65, depending on insurer, plan tier and underwriting.
Strongly recommended for Spanish assets. Non-Spanish nationals can elect home-country law via EU Succession Regulation 650/2012.
Network varies by insurer brand and tier but typically includes Hospiten (multi-island), Vithas, Quirónsalud, Hospital San Roque and others. Confirm with the insurer.
At the Las Palmas or Santa Cruz de Tenerife Oficina de Extranjeros depending on your island.
