Sunny Tenerife – an island where the sea meets the mountains and the tourist season practically never ends.
This combination makes Tenerife one of the most sought-after destinations for residential and holiday property investment in Europe. Foreign investors find a stable market, growth in value and attractive opportunities for short and long-term rentals.
If you are considering buying your own oceanfront apartment, the following article will provide an overview of prices, investment options, costs, procedures, and trends for 2025.
Why choose Tenerife for investment?
Year-round demand – more than 12 million tourists per year, apartment occupancy even outside the high season.
Price growth – average growth of 7–10% per year over the last 5 years.
Rental income – short-term rental yields 6–9% net per year.
Security and stability – investments within the EU, legal certainty, new laws against "squatters".
Great transport accessibility – two international airports (TFS and TFN) with direct flights to most European capitals.
Example: an apartment that sold for €220,000 in 2023 costs over €260,000 today.
Climate – the island's main asset
Tenerife has over 300 sunny days a year. While Europe experiences frost in winter, here in December it is a pleasant 22-24 °C. The ocean does not drop below 19 °C, which allows swimming all year round.
The north of the island is greener, the south sunnier - the choice of location also depends on the investor's preferences.
How does buying a property in Tenerife work?
Preparation – obtaining a NIE number, opening an account in a Spanish bank.
Reservation – signing the reservation contract, making a deposit (€3–6,000).
Due diligence – verification of ownership, debts, permits and legal status.
Finalization at the notary - signing the purchase contract, payment of the price, handover of the keys.
After purchase - registration in the land register, transfer of utilities, notification to the tax office.
The entire process usually takes 4–6 weeks.
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Rental income – model example
2+kk in Costa Adeje, price €270,000
Costs (administration, maintenance, taxes) : approx. €24,500 Net profit : approx. €13,000 per year → yield 4.5–5% net
In practice, profit may be higher due to higher prices in the peak season or better occupancy.
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We will also advise you on this so that you can have maximum profit.
Frequently asked questions
Do I need to have Spanish citizenship to buy an apartment? No, an EU national ID card or passport is enough.
How long does the process take? Typically 4-6 weeks.
Do banks provide mortgages to foreigners? Yes, most Spanish banks offer financing up to 60-70% of the property value.
Summary
Tenerife is one of the safest and most profitable investment destinations in Europe. Stable price growth, a year-round tourist season and new legislation create exceptional conditions for investors.
👉 Are you planning to buy a property in Tenerife?
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