The Canary Islands sit off the coast of northwest Africa, yet they are fully part of Spain and the European Union. For non-EU citizens who want to live in Spain on a Non-Lucrative Visa, the islands offer something the mainland cannot quite match: temperatures that rarely dip below 18°C in winter, a cost of living that undercuts Madrid and Barcelona by a significant margin, and a tax system that makes everyday expenses noticeably cheaper. This guide covers everything you need to know about building a life in the Canaries as an expat.
Why the Canary Islands? Climate, Location and Lifestyle
The islands sit at roughly the same latitude as the Sahara Desert, which gives them their famous subtropical climate. Average temperatures in Tenerife and Gran Canaria hover between 18°C and 25°C year round. There are no freezing winters and no searing summer heatwaves of the kind that now regularly bake Seville and Madrid. The trade winds keep conditions comfortable even in July and August.
This matters enormously for NLV holders. Many people who apply for the Non-Lucrative Visa are retired or semi-retired, and the ability to walk outdoors, swim, cycle, and socialise twelve months of the year is a significant quality-of-life factor. It also reduces heating and cooling costs. Most apartments in Tenerife and Gran Canaria do not have central heating because it is simply not needed for most of the year.
The islands also benefit from excellent flight connections to the UK and northern Europe. Ryanair and easyJet operate year-round routes from London Stansted, Manchester, Edinburgh, Dublin, and numerous other airports to Tenerife South (TFS) and Gran Canaria (LPA). Return flights are often available for under £100 outside peak season. For NLV holders who need to return to their home country periodically, this accessibility is a genuine practical advantage.
Which Island Is Right for You?
The Canary Islands archipelago has seven main inhabited islands, each with a distinct character. Choosing the right one depends on your lifestyle preferences, budget, and the kind of community you want around you.
Tenerife
Tenerife is the largest island and the one with the most developed infrastructure for expat living. The south of the island, around Los Cristianos and Playa de las Américas, has one of the largest British expat communities in Spain. English is widely spoken in shops, medical practices, and restaurants. The island has multiple private clinics, international schools, supermarkets stocking British goods, and a strong network of expat social groups. The north, around Puerto de la Cruz, is quieter, greener, and cooler, attracting a more European continental crowd. Tenerife also has the highest point in Spain: Mount Teide at 3,715 metres, a UNESCO World Heritage site and extraordinary hiking destination.
Gran Canaria
Las Palmas de Gran Canaria, the island's capital, is a genuine city with a population of around 380,000. It has universities, a thriving cultural scene, excellent restaurants, and a cosmopolitan feel. The south of the island, around Maspalomas and Playa del Inglés, is resort-oriented with large expat and tourist populations. Gran Canaria tends to attract a slightly younger demographic than Tenerife and has a growing digital nomad community, though NLV holders must remember that remote work is not permitted on that visa.
Lanzarote
Lanzarote is smaller, quieter, and defined by its dramatic volcanic landscape. The architect César Manrique shaped much of the island's built environment, and planning restrictions have kept overdevelopment in check. Popular expat areas include Puerto del Carmen and Playa Blanca. Property prices are generally lower than Tenerife or Gran Canaria, and the pace of life is slower. It suits retirees who want tranquillity over urban convenience.
Fuerteventura
Fuerteventura has the best beaches in the archipelago — long, white, wind-swept stretches that attract surfers and kite-surfers from across Europe. The island is flat and arid, with a raw, uncrowded feel. Corralejo in the north has an established expat community. Property and rental costs are lower than the bigger islands. The trade-off is that infrastructure and healthcare options are less extensive.
La Palma, La Gomera, and El Hierro
These three western islands are smaller, greener, and far less developed for tourism. La Palma is known as "La Isla Bonita" for its lush laurisilva forests and dark-sky reserve. They appeal to expats who genuinely want to escape crowds, but they require a more self-sufficient approach to life. Medical facilities are limited and inter-island travel is necessary for specialist healthcare.
Cost of Living in the Canary Islands
The Canary Islands are meaningfully cheaper than mainland Spain, and significantly cheaper than most of western Europe. There are two main reasons for this.
First, the islands have their own indirect tax system. While mainland Spain applies the standard VAT rate of 21% (IVA), the Canary Islands use the IGIC (Impuesto General Indirecto Canario) at a standard rate of just 7%, with a reduced rate of 3% for many food and essential goods. This difference flows through to grocery prices, restaurant meals, and consumer goods across the board.
Second, the property market has historically been less pressured than Madrid or Barcelona, though prices in popular expat zones like Los Cristianos and Corralejo have risen since the pandemic. Here is a realistic monthly budget breakdown for a single NLV holder living comfortably:
- Rent (1-bed apartment, expat area): €700 – €1,100/month
- Groceries: €200 – €300/month
- Utilities (electricity, water, internet): €80 – €130/month
- Private health insurance (required for NLV): €60 – €180/month depending on age
- Eating out (mid-range restaurant, one meal): €10 – €18
- Public transport or car costs: €40 – €120/month
- Leisure and social activities: €100 – €200/month
A comfortable single person can live well on €1,500 – €2,000 per month, which sits within or just above the NLV's minimum income requirement of €2,400 per month. A couple would typically need €2,500 – €3,200 per month for a comfortable lifestyle, which aligns with the NLV's €3,000 per month requirement for two people (€2,400 + €600 per dependent).
The Special Economic Zone and Tax Advantages
Beyond the lower IGIC rate, the Canary Islands benefit from a special status within the EU known as the Zona Especial Canaria (ZEC). This creates favourable corporate tax rates for qualifying businesses — as low as 4% corporate tax for companies employing at least five people and investing in the islands. For NLV holders, this is largely not directly relevant since the NLV prohibits lucrative employment or business activity. However, if you hold passive income from a business structured elsewhere, the ZEC's existence speaks to the islands' broader philosophy of fiscal competitiveness.
What is directly relevant to NLV holders is that after 183 days in Spain you become a Spanish tax resident. Spain taxes worldwide income, which means your pension, dividends, rental income, and savings interest will be subject to Spanish IRPF (progressive rates of 19% to 47%). The Canary Islands do not have separate regional income tax rates from the mainland; the regional component of IRPF follows standard rules. You should speak with a Spanish tax adviser before your first full year of residence.
Healthcare in the Canary Islands
As an NLV holder, you are required to hold comprehensive private health insurance with no copayments and no deductibles. This is a condition of the visa itself, and you must maintain it throughout your residency. The good news is that the Canary Islands have solid healthcare infrastructure.
The public system in Tenerife is anchored by Hospital Universitario Nuestra Señora de la Candelaria (Santa Cruz de Tenerife) and Hospital Universitario de Canarias (La Laguna), both providing full tertiary care. Gran Canaria has the large Hospital Universitario de Gran Canaria Dr. Negrín and Hospital Insular de Gran Canaria. Once you have lived in Spain legally for a sustained period and registered with the health system (via the Convenio Especial or through gaining access as a long-term resident), you may be able to use public healthcare.
For the initial period of your NLV, most expats rely on their private insurer. Popular providers with good Canary Islands networks include Sanitas, Adeslas, Asisa, and DKV. All four operate clinics and have agreements with private hospitals across the main islands. Monthly premiums for a healthy person in their 50s typically run from €60 to €120 per month; for someone over 65, expect €100 to €200 or more.
Expat Communities and Social Life
The Canary Islands have been a destination for northern European retirees and long-stay residents since the 1960s. The expat community is well established, well organised, and genuinely welcoming to newcomers.
In Tenerife South, you will find British-run bars and restaurants, English-language newspapers (the Tenerife News has been publishing for decades), English-speaking doctors, dentists, solicitors, and estate agents, and numerous social clubs ranging from bowls and golf to walking groups and book clubs. The same is true, to a slightly lesser extent, in Gran Canaria's south around Maspalomas and in Lanzarote's Puerto del Carmen.
Facebook groups are the primary way newer expats connect. Groups such as "Expats in Tenerife" and "British Expats in Gran Canaria" have tens of thousands of members and are active daily. They are invaluable for recommendations on everything from finding a gestor (tax adviser) to knowing which supermarket stocks your preferred brand of tea.
If you speak Spanish, or are willing to learn, you will find integration into local Canarian life rewarding. Canarians are generally warm and friendly towards foreigners, and the islands have a distinct identity — proud of being both Spanish and something uniquely their own — that makes them an interesting place to put down roots.
Getting There and Getting Around
The two main international airports — Tenerife South (TFS) and Gran Canaria (LPA) — are among the busiest in Spain by passenger volume. Both are served by multiple UK and European airlines including Ryanair, easyJet, Jet2, TUI, and Vueling. Tenerife North (TFN) serves inter-island and some Spanish mainland routes. Lanzarote (ACE) and Fuerteventura (FUE) also have international airports with direct UK connections.
Getting between islands is straightforward via Binter Canarias and Canaryfly (short-haul flights) or Fred. Olsen and Naviera Armas (ferry services). A ferry from Tenerife to Gran Canaria takes around 80 minutes on the fast service; Tenerife to Lanzarote is around 3.5 hours.
Within the islands, most expats find a car useful, particularly outside the main resort areas. Fuel is cheaper than mainland Spain due to different excise duty rates. Public buses (called guaguas in the Canaries) are reliable and inexpensive in Tenerife and Gran Canaria, with routes covering most of the main towns and resorts.
Living on the NLV in the Canary Islands
The Canary Islands are full Spanish territory, which means all Spanish immigration rules apply exactly as they do on the mainland. You apply for the NLV at your local Spanish consulate before moving, and after arriving you register with the local ayuntamiento (town hall) via empadronamiento and book your appointment to collect your TIE (Tarjeta de Identidad de Extranjero) residence card.
One practical note: appointment availability at the Comisaría de Policía for TIE collection varies significantly by island. In Tenerife and Gran Canaria, appointments can be booked a few weeks out. On smaller islands, you may need to travel to a larger island for your appointment. Book your police appointment before you fly if possible — some areas have waits of several weeks, and you must collect your TIE within 30 days of entry.
The income requirement for the NLV does not change based on where in Spain you live. You need €2,400 per month (€28,800 per year) for a single applicant, plus €600 per month per dependent. This must be passive income — pensions, dividends, rental income, savings, or investments. You cannot work in Spain or for a Spanish employer on the NLV.
Pros and Cons of Canary Islands Life for Expats
The advantages
- Climate: Stable year-round warmth with no extreme seasons. One of the most reliable climates in Europe.
- Lower cost of living: Cheaper than mainland Spain across rent, food, and consumer goods, partly due to the IGIC system.
- Strong expat infrastructure: English-speaking doctors, lawyers, estate agents, and social networks are well established.
- Flight connections: Direct routes to the UK and northern Europe from multiple airlines, year round.
- Natural environment: Beaches, volcanoes, forests, and a UNESCO World Heritage site on your doorstep.
- Relaxed pace of life: Generally less stressful than life in Madrid or Barcelona.
The trade-offs
- Island mentality: Some expats find island life isolating over time, particularly on the smaller islands.
- Imported goods are more expensive: Anything that has to be shipped to the islands carries a cost premium.
- Limited specialist healthcare on smaller islands: Serious conditions may require travelling to Tenerife or Gran Canaria.
- Property market pressure in resort areas: Popular expat zones have seen rental prices rise significantly since 2022.
- Less cultural depth than mainland cities: For those who want opera, world-class museums, and a major urban scene, the islands are not the equivalent of Madrid or Barcelona.