Living in the Canary Islands: the ultimate expat guide

The Canary Islands economy is dominated by tourism and services, which contribute over 35% of regional GDP. While the job market has historically had higher unemployment than mainland Spain, 2024 marked the lowest unemployment in 17 years, with consistent improvement over four consecutive years. Understanding the local employment landscape is essential for anyone planning to work in the islands.

Key Employment Sectors

The primary employment sectors include tourism and hospitality, healthcare, retail, construction, and increasingly, digital and remote work. Las Palmas de Gran Canaria has emerged as a popular hub for digital nomads, with co-working spaces and a growing tech community. The Zona Especial Canaria (ZEC) offers attractive incentives for businesses, with corporate tax rates as low as 4% for qualifying companies.

Work Permits and Visas

EU/EEA citizens can work freely in the Canary Islands. Non-EU citizens require a work visa, with options including the Digital Nomad Visa for remote workers, the standard work permit sponsored by an employer, or the entrepreneur visa for those starting a business. The Digital Nomad Visa requires proof of remote employment with a non-Spanish company and a minimum income of approximately €2,400 per month.

The following table summarizes key employment indicators:

Sources: INE (National Statistics Institute), CaixaBank Research

The Canary Islands host several respected higher education institutions offering programs across diverse fields. The islands' universities have strong international connections, particularly for Erasmus exchanges, and provide affordable tuition compared to universities in the UK or US. Most programs are taught in Spanish, though English-taught courses are increasingly available, especially at master's level.

Main Universities

The University of La Laguna (ULL) in Tenerife, founded in 1792, is the oldest university in the Canary Islands and one of the most prestigious in Spain. It offers over 50 degree programs and has approximately 25,000 students. The University of Las Palmas de Gran Canaria (ULPGC), established in 1989, is the largest university in the archipelago with more than 24,000 students. It excels in tourism research, marine sciences, and engineering. The private Universidad Europea de Canarias in Tenerife offers smaller class sizes and English-taught programs in hospitality and business.

Tuition and Admission

Public university tuition for EU students ranges from approximately €700 to €1,500 per year for undergraduate programs, making it highly affordable by international standards. Non-EU students typically pay higher fees, though still considerably less than universities in the UK or North America. Admission for international students generally requires a recognized high school diploma equivalent to the Spanish Bachillerato, language proficiency certification, and successful completion of entrance requirements. Application periods typically run from May to July.

Sources: University of La Laguna, University of Las Palmas de Gran Canaria

The Canary Islands rank among Europe's most popular retirement destinations, offering an exceptional quality of life with year-round sunshine, excellent healthcare, and a lower cost of living than much of Western Europe. The established international community, English-speaking services, and relaxed pace of life make transitioning to island retirement relatively smooth.

Visa Requirements for Retirees

Non-EU citizens can retire in Spain using the Non-Lucrative Visa, which requires proof of €28,800 annual income (approximately €2,400 monthly) from pensions, investments, or savings. Applicants must also provide private health insurance valid in Spain and demonstrate they will not work. The visa is initially granted for one year, renewable for two-year periods, with eligibility for permanent residency after five years. EU citizens have the right to reside freely but must register for residency after 90 days.

Healthcare and Practical Considerations

The Canary Islands have a high-quality public healthcare system (Servicio Canario de la Salud) with major hospitals in Las Palmas and Santa Cruz. Retirees holding Non-Lucrative Visas typically require private health insurance, which costs approximately €50-€150 per month depending on age and coverage. After one year of residency, some retirees can access public healthcare through the Convenio Especial program for €60-€157 monthly. The islands offer accessible infrastructure, with most facilities designed for easy mobility, and a large international community providing support networks for newcomers.

Sources: Spanish Ministry of Foreign Affairs, Spanish Social Security

Families relocating to the Canary Islands have excellent educational options, from Spanish public schools to international institutions following British, American, or other curricula. Several schools in the islands rank among Spain's top 100, offering quality education in a multicultural environment. The choice between local and international schooling depends on factors including language goals, intended length of stay, and educational philosophy.

International Schools

The islands host numerous international schools catering to the expatriate community. In Gran Canaria, the British School of Gran Canaria provides UK curriculum education from ages 3 to 18, with fees ranging from approximately €6,300 to €8,000 per year. The American School of Las Palmas, founded in 1967, offers an accredited American curriculum and was the first Eco-School in the Canary Islands. Oakley College is another highly-rated British international school. In Tenerife, Wingate School has over 570 students representing more than 32 nationalities, while the Deutsche Schule serves the German-speaking community.

Spanish Public and Private Schools

Spanish public education is free and compulsory from ages 6 to 16. Public schools teach primarily in Spanish, with English as a second language. For families seeking integration into local culture, public schooling offers full immersion. Private Spanish schools, such as Heidelberg (trilingual in Spanish, German, and English) and Claret Gran Canaria, consistently rank among Spain's best schools. Average private school fees are approximately €7,200 per year. Enrollment in public schools requires proof of residence and the child's vaccination records.

Sources: El Mundo School Rankings, British School of Gran Canaria

The Canary Islands property market offers diverse options, from modern city apartments to traditional Canarian houses and beachfront villas. Rental prices have increased significantly in recent years due to tourism demand, particularly in southern resort areas. Understanding the distinct character of each island and neighborhood helps in finding the right location for your lifestyle and budget.

Popular Areas for International Residents

In Gran Canaria, Las Palmas de Gran Canaria offers urban living with cultural amenities, beaches, and a strong international community. The historic Vegueta district charms with colonial architecture, while Triana provides trendy cafes and shopping. Puerto de Mogán, nicknamed "Little Venice," appeals to retirees seeking tranquility. In Tenerife, the south coast towns of Los Cristianos, Costa Adeje, and Playa de las Américas have large expatriate populations. Puerto de la Cruz in the north offers a more traditional Canarian atmosphere with lush greenery. Lanzarote and Fuerteventura attract those seeking quieter, more affordable island life.

Rental Prices and Procedures

Renting typically requires a deposit of one to two months' rent, the first month's payment, and proof of income or employment. Long-term rentals (over 11 months) offer better value but can be scarce in tourist areas. The table below shows average monthly rental costs:

Sources: Numbeo, Idealista

The Canary Islands offer an extraordinary range of leisure activities, from world-class hiking and water sports to vibrant cultural festivals and Michelin-starred dining. The diverse landscapes across the seven islands mean you can explore volcanic craters, ancient laurel forests, golden sand dunes, and dramatic cliffs, all within easy reach.

Natural Attractions and Outdoor Activities

Teide National Park in Tenerife, a UNESCO World Heritage Site, surrounds Spain's highest peak at 3,718 meters and attracted nearly 4.6 million visitors in 2023. The lunar-like volcanic landscape offers exceptional hiking and one of the world's best locations for stargazing. Timanfaya National Park in Lanzarote showcases dramatic volcanic terrain, while La Palma's Caldera de Taburiente and La Gomera's Garajonay National Park provide lush forest trails. Water sports enthusiasts enjoy surfing in Fuerteventura and Lanzarote, whale and dolphin watching off Tenerife's coast, and diving throughout the archipelago. The islands' year-round swimming conditions make beach life a constant pleasure.

Culture and Entertainment

The Carnival of Santa Cruz de Tenerife, held in February, is the world's second-largest carnival after Rio de Janeiro, with up to 400,000 people filling the streets on peak nights. Las Palmas hosts its own spectacular carnival celebration. The islands boast a growing haute cuisine scene, with Tenerife holding six Michelin stars across five restaurants. Cultural attractions include the works of artist César Manrique throughout Lanzarote, the UNESCO-listed historic center of San Cristóbal de La Laguna, and numerous museums and art galleries in the capital cities.

Sources: Spain Tourism Board, Hello Canary Islands

Daily life in the Canary Islands moves at a relaxed Mediterranean pace, centered around family, food, and outdoor living. The mild climate encourages an active lifestyle, while Spanish customs blend with unique Canarian traditions. Understanding local rhythms and transportation options makes settling into island life much smoother.

Getting Around

Each island has a public bus network (locally called guaguas), with extensive coverage on Tenerife and Gran Canaria. Single tickets cost between €0.75 and €5 depending on distance. Registered residents may access free public transport through official travel cards meeting minimum trip thresholds. Tenerife has a modern tram system connecting Santa Cruz with La Laguna. Inter-island ferries operated by Fred Olsen Express and Naviera Armas connect all major islands, with crossings such as Tenerife to Gran Canaria taking approximately 80 minutes. Inter-island flights provide quick connections, typically under 30 minutes. Many residents find a car essential for accessing beaches, hiking trails, and areas with limited bus service.

Lifestyle and Culture

Canarian culture emphasizes "sobremesa" – lingering over meals with conversation. Lunch is the main meal, typically taken between 2:00 and 4:00 PM, and many shops close during this time. Dinner rarely begins before 9:00 PM. Traditional cuisine features papas arrugadas (wrinkled potatoes) with mojo sauce, fresh seafood, and gofio (toasted grain flour). The islands celebrate numerous fiestas throughout the year, with the Carnival of Santa Cruz de Tenerife ranking as the world's second-largest after Rio de Janeiro. Spanish is the official language, though English is widely spoken in tourist areas and among younger generations.

The cost of living in the Canary Islands is generally 25-30% lower than in major European cities and significantly cheaper than the UK or US. The reduced IGIC tax (7%) compared to mainland Spain's 21% VAT means everyday items and services cost less. However, imported goods can be more expensive, and housing costs have risen substantially in popular areas.

Monthly Budget for a Single Person

The following table outlines typical monthly expenses for a single person living in the Canary Islands:

Monthly Budget for a Family of Four

Sources: Numbeo 2025, Idealista