The Guru Guide To Property Taxes in Gran Canaria

Gran Canaria property tax guide

Gran Canaria property tax guide

Buying a property in Gran Canaria costs about 10% of the price you pay once you factor in taxes and fees. Selling a property involves some costs but these only add up if you profit from the sale. The annual tax burden of owning a property in Gran Canaria is low.

Annual property taxes in Gran Canaria


An annual property tax set by the local Ayuntamiento that is between 0.5% and 1% of the official value of your property (much lower than the market value). The IBI rate in Las Palmas is currently 0.73%.

Other ongoing costs

IBI is the only monthly tax cost that you have to pay in Gran Canaria (there is no council tax). However, if you live in a building or a complex you have to pay a monthly communidad fee which is your share of costs like communal electricity, lift and pool maintenance and insurance.

The amount varies depending on the building and the facilities and services it offers.

Non-resident property owners must pay income tax on any rental income, plus IGIC (VAT) if they rent their property on a short -term basis. Even if a non-resident property owner doesn’t rent out their property, they still have to pay a small annual tax.

Article on non-resident property taxation in Gran Canaria.

Gran Canaria property taxes at  purchase

ITP or re-sale purchase tax

Buyers of re-sale property (as opposed to a new build) are required to pay the Impuesto de Transferencia de Propiedad which is 6.5% of the price paid for the property.

New Properties purchase tax

This is currently 7% if the house is finished or is being built at the time of the purchase. It is paid by the buyer.

A property buyer only ever has to pay one of the above two taxes.

Other fees

While not strictly taxes you also have to pay Notary fees (around 300 euros for most properties, more if you buy with a mortgage) and Property Registry fees (around 300 euros). Most buyers use a Gestoria to handle the paperwork associated with a purchase (they charge around 250 euros).

Along with the  10% taxes and fees, you’ll need a minimum  deposit of 20% if you get a mortgage (30% for non-residents) and 300 euros to pay for a valuation of the property you want to buy. Spanish banks also insist that you take out life insurance and property insurance at the same time as the mortgage.

Gran Canaria property taxes at sale

Plusvalía municipal 

Paid by the seller to the Ayuntamiento where the property is located, this is also called the impuesto sobre el incremento de valor de los terrenos de naturaleza urbana (IIVTNU).

You pay plusvalia on the increase in value of the land that a property occupies during the period that you own it (capped at 20 years) and the amount varies depending on the period of ownership and the rates set by the Ayuntamiento.

Incremento patrimonial 

Capital gains tax paid to the Spanish Treasury; Based on the difference between the sale price and the price paid by seller when he/she originally purchased the property (you can offset costs of improvements so keep your new kitchen and bathroom facturas).

As of 2016, the capital gains tax rate in Gran Canaria is 19% for the first 6.000 Euros, 21% from 6.000 to 50.000 Euros and 23% from that last amount upwards.

However, one advantage of the fall in Gran Canaria property prices over the last 10 years is that few sellers have to pay capital gains tax.

Tax exemption

Avoid paying capital gains tax by reinvesting the money from the sale of a main residence property  into another main residence property within two years. EU nationals, even non-residents, can also avoid this tax if they buy a new main residence property anywhere in the EU within two years.

To claim the exemption you need to be able to prove that a property has been your main residence. A good reason to get a ‘certificado de empadronamiento’ certificate from your Ayuntamiento as soon as you buy your house.

Mortgage cancellation fees

If you cancel a mortgage when you sell a property, expect to pay 1% or more of the outstanding balance for the privilege, plus up to 1000 euros to register the cancellation at the Notary and Property Registry. The fine for abusing a bank manager is significantly higher.

This Guru Guide was written by Laura Leyshon, our favourite Las Palmas estate agent.

8 thoughts on “The Guru Guide To Property Taxes in Gran Canaria

  1. Hi, I own a 2 bedroom flat in Vecindario which was purchased as part of VPO. The mortgage is almost finished and I am looking into selling the property. It has been empty for a number of years as I moved backed to the UK. Can I sell this property to a non resident? or on the open market. I purchased it approximately 19 years ago.

  2. Is there any obligatory yearly tax from rental if you purchase a holiday apartment or holiday house in Gran Canaria? I read that in mainland Spain such tax exists as you are supposed to pay a tax from a hypothetical rental income, even if you did not let the apartment/house for holiday rent.

  3. Hi,
    I purchased the appartments on Tenerife in 2014. The price was 120.000 €.
    Now I have a notice from Tax Office that they’ve revised the property value to 190.000 € and I have to pay 5.200€ additional tax.
    How is that possible? It definetely higher than market price even now.
    Please advise what I can do to avoid or reduce this tax.

    • Hi, what’s happened is that you have paid less than the government thinks the property is worth. They use a formula that is roughly 2.5 times the valor catastral of the property (the one used by the Town Hall to calculate the IBI annual tax). They, therefore want the tax due on what you should have paid. This happens often if you pay a low price, or pay a percentage of the actual price in cash. Your estate agent should have told you that this was likely. You often don’t find out until close to four years after purchase, which is when the statute of limitation runs out on unpaid taxes.

  4. Hi. Many thanks for a very informative website! We’re currently living on the mainland and have residencia. Is the current Impuesto de Transferencia de Propiedad still 6,5%? We’re considering moving to the Canaries, although not sure which island.
    Thank you for any info.
    Best wishes
    Garry (Sheen)

    • Hi, yes ITP is still 6.5% on second-hand property. As for which island, that’s a tricky one. We believe that GC is the most complete island as it has the city, the beaches and the mountains.

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