Why invest in the Canary Islands

Canary Islands have been breaking their own tourism records for several years. In 2017, over 16 million travelers chose one of the islands in the archipelago for their vacations. This positive trend has had a notable impact on the regional economy, generating over 10,000 new jobs in the tourism sector last year.

Furthermore, the demand for accommodation led hoteliers to increase room rates by 6.7% compared to the previous year. Vacation rentals also benefited from this trend, making it one of the most compelling reasons to invest in Canary Islands properties.

It’s important to note that average rental prices in the archipelago rose by 9%, according to the INE. The profitability horizon is even closer because housing prices have not grown below rental rates. Those considering purchasing property in the archipelago to operate it as tourist accommodation will find a mature market well-supported by public administrations.

Beyond real estate, Canary Islands offer attractive tax benefits for all investors. As a peripheral region of the EU, the regional government has sought to attract investments, for example, with a general corporate tax rate significantly below the Spanish average.

Certain sectors of the regional economy also enjoy tax exemptions, similar to those in designated “free zones”. Logistically, the islands boast a strong transportation and communications network, including eight airports (six of them international), forty-one commercial ports, twenty marinas, and over 4,500 km of roads.