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Investing in Fuerteventura: complete guide to advantages, tax benefits and profitability

Why Fuerteventura is a solid investment destination

The Canary Islands have their own tax regime that significantly reduces the total cost of investment compared to mainland Spain:

1

Deduction of property-related expenses

You can deduct expenses such as mortgage interest, property taxes and maintenance costs, improving the net return on your real estate investment.

2

Tax advantages for imported goods

Imported goods can be between 10% and 30% cheaper than in mainland Spain. In addition, several municipalities in Fuerteventura offer property tax (IBI) rebates for homes with solar energy installations.

3

Transfer tax in the Canary Islands

The Canary Islands apply a 6.5% Property Transfer Tax (ITP), one of the lowest rates in Spain for purchasing a property.

If you’d like to dig deeper into the full tax picture, our dedicated guide covers it: tax benefits of living in the Canary Islands. And if your interest goes beyond Fuerteventura specifically, here’s why investing in the Canary Islands in general makes sense, including the Canary Islands Special Zone (ZEC) tax regime.

Buying a property in Fuerteventura is a way to diversify an investment portfolio beyond stocks or bonds: it’s a different asset class, in a different geographic location, in a market of its own that’s less correlated with stock market volatility.

If your interest lies specifically in independent villas as a premium rental asset (high-end holiday rental yields, long-term appreciation), we have a dedicated analysis for that investment profile: investing in Fuerteventura luxury villas.

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