Cost of Living
Tenerife for expats: north or south?
How Tenerife’s north and south differ in climate, lifestyle and work, plus Canary Islands specifics like IGIC, online shopping and the resident discount.
Tenerife draws foreigners with mild weather all year, but the island has two very different sides. The north is green, Spanish-speaking and often cloudy. The south is dry, sunny and built around tourism. Choosing the right side is the biggest decision you will make, followed by getting used to the Canary Islands’ own tax and shipping rules.
Why the north and south feel so different
The difference comes from the trade winds, the alisios. According to the island’s official tourism board, they carry moist air from the north, which hits the mountains and forms clouds over the northern slopes. That is why the north has more humidity, more rain inland and much greener landscapes. The mountains, with Mount Teide at the centre, shield the south from most of this cloud, so the southern coast gets drier, sunnier weather for most of the year.
- North: greener, more clouds, cooler evenings, more rain in winter. Damp can be an issue in some homes, especially higher up.
- South: sunnier and drier, with barer, rocky landscapes. Some areas are windy.
- Altitude matters too: villages a few hundred metres up the hillside can feel much cooler than the coast just below.
Living in the north
The north and north-east are where most Tinerfeños live and work. Life here is more Spanish and less tourist-focused.
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- Santa Cruz de Tenerife: the island capital and a co-capital of the Canary Islands, with government offices, a port, shopping and city life.
- San Cristóbal de La Laguna: its historic centre has been a UNESCO World Heritage Site since 1999. The University of La Laguna, founded in 1701, was the first university in the Canary Islands. The city is lively and has a large student population.
- Puerto de la Cruz and La Orotava: a traditional resort town and a historic valley town, with an established foreign community in and around Puerto de la Cruz.
A tram line links Santa Cruz and La Laguna, and TITSA buses cover the rest of the island. In the north you are close to Tenerife Norte airport, which mainly serves inter-island and mainland Spain flights.
Living in the south
The south-west coast is where most tourists stay and where many foreign residents, especially retirees, end up.
- Costa Adeje, Los Cristianos and Playa de las Américas: beaches, promenades, English widely spoken and plenty of services aimed at foreigners. They can feel like a resort all year.
- Quieter options: smaller coastal towns and the inland hillside villages above the resorts offer calmer living, but you will usually need a car.
- Work: jobs in the south are concentrated in tourism and hospitality. Government jobs and most office work are in the north.
Tenerife Sur airport is in the south and handles most international flights. Our guide to airports in Spain explains how to get from each airport into town.
Canary Islands specifics: IGIC instead of IVA
The Canary Islands are outside the scope of Spanish and EU VAT (IVA). Instead, they have their own indirect tax, the IGIC (Impuesto General Indirecto Canario), collected by the Canary Islands tax agency. The general IGIC rate in 2026 is 7%, with lower and higher rates for some goods and services. That is well below the 21% general IVA rate on the mainland, but other costs can make up for it.
- Online shopping: many shops on the mainland don’t ship to the Canaries. Others ship slowly, charge more or route parcels through customs. You may be asked to pay import tax or a handling fee when the parcel arrives, so check a shop’s Canary Islands shipping policy before you order.
- Moving belongings: shipping a household from the mainland involves customs paperwork. Get quotes from removal companies that do Canary Islands moves regularly.
- Time zone: the Canary Islands are one hour behind mainland Spain all year, which matters for online appointments and calls.
Getting there and the resident discount
As in the Balearics, people registered on the padrón in the Canary Islands can get a 75% discount on flights to the rest of Spain. EU/EEA/Swiss citizens qualify with their padrón and ID. Non-EU citizens need long-term residence, so temporary permits do not qualify. When you book a domestic flight with an airline such as Iberia (ad), you select the resident option and enter your details. Check that airline’s rules for proving residence. The residency process itself is the same as on the mainland. See our guide to becoming a resident in Spain.
How to decide
- Choose the north if you want city life, a Spanish-speaking community, universities and green landscapes, and you can live with more clouds.
- Choose the south if sunshine comes first and you are happy in a more international, tourist-oriented area.
- Check your budget: rents vary a lot between resort areas and inland towns. Compare current listings, and read our cost of living guide for a wider picture.
- Visit both sides: spend time in the north and the south, ideally in winter, before you sign a long lease. A holiday package from PlusHolidays (ad) can be an easy way to arrange a first scouting trip.
FAQ: living in Tenerife
Is the north or the south of Tenerife sunnier?
The south. The mountains block most of the clouds brought by the trade winds, so the southern coast is drier and sunnier, while the north is greener and cloudier.
Do you pay IVA in Tenerife?
No. The Canary Islands use IGIC instead of IVA. The general rate in 2026 is 7%.
Why won’t some online shops deliver to Tenerife?
Because the Canary Islands are outside the EU VAT area, shipments from the mainland involve customs procedures and extra transport costs. Some sellers choose not to deal with that.
How many airports does Tenerife have?
Two: Tenerife Norte–Ciudad de La Laguna in the north and Tenerife Sur in the south.
Useful links
- Tenerife tourism – the trade winds and the island’s climate
- Agencia Tributaria Canaria – electronic office (IGIC and Canary taxes)
- Aena – Tenerife Sur airport
Disclaimer: This article is general information, not legal or financial advice. Rules and prices change, so check with the official source before you decide. Links marked “(ad)” are affiliate links – NewInSpain may earn a commission at no extra cost to you.
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