| Once you own your property in Tenerife, many owners take in consideration to rent their properties to afford mortgages costs. To rent property in Spain is not as frecuent as other European countries, as Spanish population prefer to buy property, thinking in the long term. That's also what happens with some Latin American places like Buenos Aires apartments. Canarias situation, and especially Tenerife case, is peculiar, as it is remarkable tourist destination in Europe, so many tourists decide to rent property, also Spanish people from the Peninsula.
Renting property is getting more frecuent at Tenerife, as it is growing the number of property owners of the island that have their properties as a second home, and long periods of the year, they have their properties empty.
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When you rent your property, you should be aware of several legal conditions:
It is essential there is a written agreement between the owner and the tenants with all the conditions and requirements established to live in the property. It is recommended to have a local legal representative draw up the agreement for you. The agreement should clarify clearly who is responsable for damages at the property, and also who will be responsable on the payment of utilities of gas, water and electricity.
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| The tenant should require a credibility of the prospect tenant in order to guarantee the payment of the property. In many cases, the tenant may stay in another country or outside of Tenerife island, so it is important to ensure this step.
By owning property at Canary islands, there is a special act that requires a professional property agent has to be used. This agent need to hold an official licence. Owners who fail to comply are subject to hard fine.
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| Taxes on rental incomes is either 25% or 35% depending on whether or not you have the condition of being permanent resident in Spain. It is important to remember that the tax is paid by the tenant, a deduction for the tax is made from the rental before the net amount is passed on to the owner. Require a proof that the tax payment has been made on your behalf. Any income from rent received in Spain by non-residents is subject to a payment of a apartment rate of 25%. Even if the property is not rented, owners are still subject for the income tax, calculated on the rates between: 2%-20% of the official property value.
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