Compared to other Spanish regions, tax rates on real estate in the Canary Islands are remarkably favorable. So, the total extra costs for buying property remain relatively low, around 10% of the purchase value.
The transfer tax on real estate constitutes the largest part of the costs when buying property on the Canary Islands. The rate depends on whether you buy a newly built or a second-hand property. If you are buying a new property in the Canary Islands, you will pay 7% IGIC (General Indirect Tax of the Canary Islands) + 1% of the purchase price. If you are buying a second-hand home, the rate is 6.5% of the purchase value.