Introduction: The Island That Pays You Back
Tenerife is more than just a paradise getaway — it’s a destination where your property can generate a stable passive income.
With platforms like Airbnb and Booking, thousands of Europeans are already renting out homes remotely and earning attractive returns, without ever leaving their home country.
Today, managing a rental from abroad is easier than ever — thanks to digital tools, local management companies, and transparent Spanish regulations.
Why Tenerife?
Tenerife benefits from year-round tourism, with over 5 million visitors annually.
Its climate — around 25°C in winter — keeps occupancy rates high and properties profitable every month of the year.
Key investment advantages:
- 12-month rental demand;
- ROI between 6–12% annually;
- Low maintenance and property taxes;
- Transparent licensing system;
- Constant property value growth.
💬 Few places in Europe offer such a balance of lifestyle and profit.
Step 1: Choosing the Right Property
Location is key to Airbnb success.
Best-performing rentals are usually:
- seafront apartments (Costa Adeje, Los Cristianos, El Médano);
- studios in complexes with pools;
- villas with terraces and ocean views.
Choose southern Tenerife for sunny weather and steady demand throughout the year.
Step 2: Obtaining the VV (Vacation Rental) License
Every Airbnb host in the Canary Islands must register the property as a “Vivienda Vacacional” (VV).
Registration usually takes 4–8 weeks and requires:
- property title;
- energy certificate;
- floor plan;
- owner’s declaration.
Once approved, your VV number must appear in your Airbnb listing — ensuring legal, secure operation.
Step 3: Partner With a Property Management Company
If you live abroad, a local management partner is essential.
They handle:
- guest check-ins and communication;
- cleaning and maintenance;
- pricing and calendar management;
- legal and tax reporting.
Typical commission: 15–25% of income — a fair price for true peace of mind.
Step 4: Automate Your Airbnb
Use automation tools to boost efficiency:
- Smart Pricing — dynamic pricing by demand;
- Hospitable — guest messaging and reviews;
- PriceLabs — market-driven rate adjustments;
- OwnerRez — channel synchronization.
⚡ Automation means more bookings and less stress.
Step 5: Profitability Example
Apartment in Los Cristianos:
- Purchase price: €250,000
- Avg. nightly rate: €120
- Occupancy: 80%
- Gross income: ~€35,000/year
- Net profit: €20,000 (8% ROI)
Step 6: Taxes
Non-resident tax rates:
- 19% for EU citizens;
- 24% for non-EU.
Deductible expenses include management, cleaning, utilities, and repairs.
Conclusion
Tenerife allows you to combine profit and paradise.
With the right property, license, and local partner, your Airbnb can bring steady income — even while you enjoy life thousands of kilometers away.
Want to know how much your property could earn?
Visit housetenerife.eu — we’ll calculate your potential Airbnb income for free.
