Housing and accommodation costs

When considering a move to Tenerife, housing costs are among the first expense categories to explore. Whether buying or renting, understanding price differences and what your money buys in terms of size and quality is key.

Buying or renting a home in Tenerife vs in the UK (price and size)

The average price for a property in Tenerife is approximately 20-30% lower than many parts of the UK, depending on location. For example, in La Orotava, Tenerife, you might find the average property size at 658 m² for around €1,913,000 and a 2-bedroom apartment near the coast for around €150,000. In contrast, a similar property in the UK can easily exceed £180,000 (~€210,000). Moreover, apartments in Tenerife often offer more space and outdoor areas thanks to the island’s climate.

Utility costs in Tenerife (electricity, water) vs UK

Utility bills in Tenerife tend to be lower, with electricity averaging around €60-€80 per month compared to the UK’s £100-£120, largely due to milder weather reducing heating needs. Water costs are roughly similar but can vary based on usage and property size.

Community fees for apartments with pools/gardens vs UK council tax

Many apartments in Tenerife come with community fees covering pool and garden maintenance, usually between €50-€100 per month. In contrast, UK homeowners pay council tax, which varies widely but can surpass €150 per month depending on property value and location.

Everyday expenses on Tenerife

Groceries and markets: local produce prices vs UK supermarket prices

Shopping locally in Tenerife’s markets offers fresh produce at around 20-30% lower prices than UK supermarkets. For example, a kilo of oranges might cost €0.60 locally versus £1 in the UK. Imported items, however, may carry a premium.

Transportation: fuel and car costs vs UK, public transport availability

Fuel prices in Tenerife are generally lower, averaging €1.30 per litre vs the UK’s £1.50+. Car insurance and maintenance costs tend to be cheaper too. Public transport is reliable but less extensive than in UK cities, so having a car might be more convenient.

Entertainment and eating out: restaurant prices vs those in UK towns

Dining out in Tenerife is quite affordable. A mid-range restaurant meal costs about €12-€18 compared to £20-£30 in the UK. Local food festivals and seaside cafes add charm without high prices 🍽️.

Retiree budget considerations

Healthcare costs (if using private insurance vs NHS back home)

While public healthcare in Spain is generally good and accessible to residents, some retirees prefer private insurance for faster service, which can cost €50-€100 monthly. This should be weighed against the cost and coverage of NHS services in the UK.

Travel budget to visit family in the UK from the Canaries

Flights between Tenerife and the UK vary between €50-€150 one way, depending on season and how early you book. Frequent trips can add a notable amount to your budget, so planning ahead helps manage expenses.

Any island-specific expenses (imported goods, air conditioning needs)

Being an island means some products are imported, which can increase costs for items like certain foods and household goods. Additionally, though Tenerife enjoys mild weather, air conditioning may be necessary in summer, adding to electricity bills.

Stretching your pension in Tenerife

Tax differences (UK vs Spain) and any expat tax breaks

Spain offers several tax incentives for foreign retirees, including non-resident tax rules and potential double tax treaties with the UK. Understanding your tax obligations in both countries is crucial to maximize your pension’s value.

Choosing locations on the island that fit your budget (tourist resort vs local town)

Living outside major tourist areas often results in lower rent and daily costs. Towns like Costa Adeje, Tenerife, provide authentic island living at reduced prices compared to resort hubs.

Adjusting spending habits to local cost structure (more fresh market shopping, etc.)

Adapting your lifestyle to enjoy more fresh market shopping, cooking at home, and participating in community events can help keep expenses down while enriching the expatriate experience 🌞.