Moving to the Canary Islands

Verdict

Relocating to the Canary Islands can be attractive if you want a distinct fiscal environment, but it is not simply “mainland Spain with sunshine.” The islands use IGIC instead of mainland IVA, with a general rate of 7% rather than 21%, and they sit outside the EU VAT territory, so tax treatment for purchases, invoicing, and imports can differ materially from the mainland.[3][4]

That means the move can be worthwhile for residents and businesses that understand the local regime, but it requires checking customs and indirect-tax rules carefully before you relocate or start trading.[3][11][14]

Get a free quote

Canary Islands relocation guide

The Canary Islands are an autonomous Spanish archipelago in the Atlantic, and moving there means moving to Spain, with the same basic EU framework for EU citizens and Spain’s national rules for residence, work, healthcare and schooling. The archipelago has seven main inhabited islands: Tenerife, Gran Canaria, Lanzarote, Fuerteventura, La Palma, La Gomera and El Hierro.[7][17]

People usually move there for the climate, the outdoor lifestyle, lower-pace living, and increasingly for remote work and digital-nomad jobs. Recent relocation guides also highlight the islands’ practical advantages for online workers, including well-developed coworking scenes on the larger islands and a time zone that suits European business hours.[1][2][11]

The seven islands: what each one is best known for

  • Tenerife is the largest and most populated island, with the main urban centres of Santa Cruz de Tenerife and the north/south divide in climate and lifestyle.[7][17]
  • Gran Canaria is known for Las Palmas, a major city with strong services, a large expat community, and good connectivity.[2][6][11]
  • Lanzarote is popular for its volcanic landscape, slower pace, and year-round mild weather.[7][16]
  • Fuerteventura is often chosen for beaches, wind sports and a quieter island feel.[7][16]
  • La Palma attracts people who want a greener, more rural environment and strong hiking culture.[7]
  • La Gomera is smaller, quieter and more nature-focused, with limited urban infrastructure compared with Tenerife or Gran Canaria.[7]
  • El Hierro is the smallest of the main inhabited islands and is best suited to people seeking remoteness and a very low-key lifestyle.[7]

Why people move there

Climate is the main draw: the islands are often described as offering mild temperatures through the year, which is one reason relocation guides frame them as a lifestyle destination rather than a purely economic one.[1][7][16]

Remote work is the second big driver. The larger islands, especially Tenerife and Gran Canaria, are repeatedly described as suitable for digital nomads because they combine broadband access, coworking options, international airports, and established expat communities.[2][11][17]

For many movers, the Canary Islands offer a balance between European legal stability and a more relaxed island environment than the mainland.[1][17]

Residence rules: EU, EEA and non-EU nationals

EU and EEA citizens do not need a visa to move to the Canary Islands, because the islands are part of Spain and therefore part of the EU free-movement area.[8][11]

Short stays for many non-EU visitors are possible under the usual Schengen rule of up to 90 days in any 180-day period for tourism, but that does not authorize work or long-term residence.[13]

If you plan to stay longer, the usual practical steps are to obtain a Spanish foreigner identification number, register your address at the town hall, and, depending on nationality and status, complete the relevant residence registration or permit process.[3][4][17]

The details differ by nationality and purpose of stay, so there is no single “Canary Islands visa”; the rules are Spanish residence rules applied in the islands.[8][13]

Housing

Housing is one of the most important planning points. The larger islands, especially Tenerife and Gran Canaria, tend to have the widest rental markets, more services and more choice, while smaller islands may have fewer properties and less turnover.[6][7][17]

Relocation guides consistently recommend arranging temporary accommodation first, then searching locally for a long-term rental once you arrive and can inspect areas in person.[5][10][17]

Common practical documents for renting include proof of identity, a foreigner number if required, income evidence, and sometimes a Spanish bank account. In practice, landlords and agencies often want a clean paper trail and may move faster if you can show stability of income.[4][17]

Because demand is uneven across islands and tourist zones, it is usually wise to compare not just price, but access to transport, schools, healthcare and internet quality before signing a lease.[1][6][17]

Healthcare

The Canary Islands use Spain’s healthcare system, so access depends on your legal status, registration and contribution history, not on the islands themselves.[3][10][17]

EU citizens may rely on the European Health Insurance Card for medically necessary care during temporary stays, but long-term residents should register properly in Spain and secure the documentation needed for ongoing access.[3]

Non-EU residents generally need the correct residence status and, in many cases, private health insurance during the application phase or until they qualify for public coverage.[13]

For day-to-day life, most people register with a local health centre after settling, and larger islands have the broadest choice of public and private providers.[10][17]

Schools and family life

Families can choose between public, subsidized private, and fully private schooling, as elsewhere in Spain. The best option depends on language, curriculum and location, and the larger islands offer the most choice.[14][17]

If you move with children, it is sensible to check catchment areas, school language support, transport and waiting lists before finalizing housing, because school access often follows where you live.[14][17]

Connectivity and day-to-day infrastructure

The major islands have the best airports, ports, mobile coverage and broadband options, which is why Tenerife and Gran Canaria are common choices for remote workers.[2][11][17]

Connectivity can be more limited on smaller islands and in rural areas, so anyone working online should confirm fibre or reliable fixed wireless service before committing to a property.[1][7][17]

Inter-island travel is routine, but residents may qualify for transport discounts once properly registered, which can make island hopping and mainland trips more affordable.[17]

Cost of living versus mainland Spain

Daily life in the Canary Islands can be cheaper than the mainland in some tax-related consumption items because the archipelago uses IGIC, the local indirect tax, instead of mainland VAT; current guides cite a standard IGIC rate of 7% versus 21% VAT on the mainland.[2][11]

That said, housing can offset part of the tax advantage, especially in high-demand areas and tourist zones, and several recent relocation guides stress that rents have risen.[16][17]

In practice, the cost of living depends heavily on island, location and lifestyle: urban Tenerife and Gran Canaria are usually more expensive than smaller or less connected islands, while remote areas can reduce rent but increase transport dependence.[1][6][16][17]

Working in the Canary Islands

EU citizens may work under normal EU free-movement rules, subject to local registration requirements once they become residents.[8][11]

Non-EU nationals need a residence route that permits work, or a separate authorization depending on their circumstances; tourism status alone is not enough.[13]

Remote workers are a major part of the new-move market, but tax residence matters. In Spain, residence is generally determined by where you live and spend your time, so moving for work should be coordinated with a proper tax review rather than treated as a casual long stay.[11][17]

ZEC: the Canary Islands special tax regime

The Canary Islands Special Zone, usually called ZEC, is a special corporate regime for qualifying companies that meet the legal requirements. Current relocation and tax guides describe the headline benefit as a reduced corporate tax rate of 4% for eligible activities, under strict conditions.[11]

This is not a general personal tax discount for everyone who moves to the islands. It applies to qualifying entities and activity types, and people considering it should verify eligibility with a qualified tax adviser before incorporation or relocation.[11]

Alongside ZEC, the islands benefit from the wider Canary Islands economic and fiscal framework, including IGIC instead of mainland VAT.[2][11]

Practical first steps

  • Choose the island based on your priorities: city access, family life, beaches, hiking, remoteness or remote-work infrastructure.[6][7][16][17]
  • Check your legal route to stay: EU, non-EU tourist stay, residence permit, work authorization, or digital-nomad path if applicable.[8][11][13]
  • Arrange temporary accommodation before arrival so you can inspect long-term housing in person.[5][17]
  • Obtain the Spanish foreigner number and complete local registration steps once eligible, including town-hall address registration.[3][4][17]
  • Open a Spanish bank account for rent, utilities and everyday payments.[10][17]
  • Set up healthcare access early, especially if you are non-EU or moving with children.[3][13][17]
  • Confirm school options and enrolment timing if you have children.[14][17]
  • Verify internet quality at the exact address before signing a lease if you work online.[1][11][17]
  • Speak to a Spanish tax professional before becoming resident if you have cross-border income, a company, or ZEC-related plans.[11][17]

Send a request — verified movers will send you a free, no-obligation quote.