Tenerife, known for its mild climate and striking natural landscapes, still has areas where property prices remain surprisingly affordable compared with other tourist or urban centres. If you are thinking of relocating to the island or investing there, discover the most affordable town in Tenerife to buy property.
Which is the most affordable town in Tenerife?
As of October 2025, Icod de los Vinos is the most affordable municipality on the island of Tenerife for property buyers. Situated in the island’s northwest, at the foot of the majestic Mount Teide and close to the coast, it is known for its tranquil atmosphere, long winemaking tradition and the iconic Drago Milenario, a symbol of the Canary Islands.
In terms of price, Icod de los Vinos offers homes at notably lower costs than many other parts of Tenerife. According to idealista’s October price report, the average price per square metre stands at €1,446 in this town of roughly 23,000 inhabitants.
Living in Icod de los Vinos
Settling in Icod de los Vinos offers a peaceful and authentic lifestyle, far removed from the large cities and the more tourist-focused areas of Tenerife. The town has a warm, welcoming atmosphere, shaped by the hospitality of its residents and the richness of its local traditions.
Beyond its affordability, it benefits from a privileged natural setting, with views of Mount Teide and easy access to beaches and green spaces. The range of services is comprehensive, including educational and healthcare facilities, as well as shops that meet everyday needs.
- Property for sale in Icod de los Vinos
- Long-term rentals in Icod de los Vinos
- Holiday homes in Icod de los Vinos
Where is the most affordable place in the Canary Islands?
The cost of living in the Canary Islands varies notably between islands and towns, although Tenerife and Gran Canaria – home to the major cities of Santa Cruz de Tenerife and Las Palmas – generally have higher prices. Even so, both islands have inland rural areas where life is considerably more affordable.
Across the archipelago, La Palma and El Hierro are often regarded as some of the cheapest places to live, thanks to their lower housing costs and reduced tourist pressure. Outside the main urban centres, smaller towns in northern Tenerife or the interior of Gran Canaria also offer a more economical cost of living.
The most affordable towns in Tenerife
Besides Icod de los Vinos, Tenerife is home to other towns and villages where buying a home is surprisingly affordable. Here are some of the towns that follow Icod de los Vinos on the list:
- Arafo: Located in the southeast of the island, it is known for its peaceful atmosphere and agricultural tradition. Properties cost €1,521 per square metre.
- Güímar: Also located in the southeast, it stands out for its stable climate and an attractive range of services. The average price is €1,714.
- La Orotava: Famous for its traditional architecture and beautiful landscapes, properties average at €1,918 per square metre.
- San Cristóbal de La Laguna: A world heritage site and university city, its price is €2,092 per square metre.
How does the CPI affect rent updates in Spain in 2025?
Article 18 of the Spanish Urban Leases Act (LAU) outlines, among other provisions, the procedure for updating a property's rent. Although the LAU states that, in the absence of a specified index, the Competitiveness Guarantee Index (IGC in Spanish) will apply, the most commonly used benchmark for rent adjustments is the Consumer Price Index (CPI).
Home swaps in Spain: a rising holiday trend with unclear tax rules
Every summer, hundreds of families in Spain exchange their homes with others in search of free holidays and unique experiences. This rapidly growing practice, known as home swapping, operates in a legal grey area: there are no tourism regulations, no clearly defined tax obligations, and no administrative oversight from the tax authorities. What many see as an affordable and sustainable alternative to holiday rentals remains, for the government, a sector shrouded in legal ambiguity.