Buying a home in Lanzarote is one of the most exciting decisions many of our clients make, whether they’re seeking a permanent move, a holiday base, or a long-term investment. As a team that has supported buyers through every stage of the journey, we know that understanding the real costs, legal steps, and local market conditions is the key to making confident, informed decisions. Buying property overseas is a significant commitment, and Lanzarote’s unique landscape, protected planning rules, and diverse neighbourhoods make local knowledge essential from the very beginning.
In this guide, we take you through everything you need to know when you decide to buy a home in Lanzarote, from the fees and hidden costs to the legal process and current market insights. This blog is entirely different to our previous guide, giving you a deeper dive into how the numbers work, what to expect legally and how today’s Lanzarote property market behaves.
From a lifestyle perspective, Lanzarote offers something few other destinations can match: year-round warm weather, stable infrastructure, a relaxed island pace and a consistently strong tourism economy. For many buyers, the attraction lies in the balance between tranquillity and convenience; quiet neighbourhoods sit only minutes from lively coastal resorts, and rural countryside homes sit within easy reach of beaches and amenities.
The island attracts a varied mix of buyers, from retirees seeking sunshine to remote workers wanting a calmer lifestyle and investors looking to benefit from reliable rental demand. For us at Roper Properties, this diversity is one of Lanzarote’s strengths. It keeps the market balanced and creates steady demand for properties across all price segments.
The Lanzarote property market is shaped by several distinct factors: limited land availability, consistent overseas demand, planning protection rules and long-term supply shortages in key coastal areas. These factors help stabilise values and keep the market healthier than many mainland regions.
One of the most important things to understand is that Lanzarote has strict planning regulations that preserve the island’s natural beauty. These restrictions mean there are fewer large developments, which naturally reduces supply. When you combine this with high buyer interest, it creates a market where prices tend to hold steady and often rise gradually over time.
Browsing real-time listings on Roper Properties is a helpful way to see how these trends play out across different areas, from budget-friendly apartments to premium coastal villas. This steady, measured growth is one of the reasons so many people continue buying property in Lanzarote, especially those seeking long-term stability rather than speculative investment.
One of the biggest surprises for new buyers is the range of additional costs beyond the property price. These fees are standard across Spain but vary depending on whether you purchase a new build or resale home, whether you need a mortgage and the type of property you choose.
Below, we break down the full cost structure you should expect when planning to buy a home in Lanzarote:
There are several compulsory purchase taxes you might be responsible for, including:
This is the most common tax for buyers. If the property is being sold by an individual rather than a developer, you will pay ITP. It’s a one-off tax, and the Canary Islands benefit from a lower percentage than mainland Spain in most cases.
If you’re purchasing directly from a developer, you’ll pay IGIC instead of ITP. This is paired with a 1 per cent stamp duty (AJD), which is paid at completion.
This is paid when signing the public deed at the notary. New build purchases always incur this fee.
Legal fees typically average around 1 per cent of the purchase price. This covers:
Your lawyer ensures every step follows Spanish law and that you remain fully protected. Never rely solely on the seller’s representative.
Both the notary and the land registry must be paid on completion. Combined, they usually fall between:
These fees cover the official witnessing of the deed and your formal registration as the legal owner.
If you’re financing your home, expect:
Spanish banks are generally supportive of foreign buyers, but the documentation they require can feel extensive. Your lawyer and bank advisor will guide you through each step.
Beyond the purchase itself, buyers often underestimate the smaller costs that come into play. These can include:
Even though these costs vary, they are essential when planning your long-term budget.
The legal process in Spain is transparent and highly regulated, but it’s very different from what many overseas buyers are used to. When you buy a home in Lanzarote, it’s essential to understand each step clearly so you know exactly what’s happening and why. This is where working with an independent lawyer becomes invaluable; they protect your interests, carry out checks you simply can’t do yourself and ensure every document complies with Spanish law.
Below is the real timeline, based on how we support clients at Roper Properties from offer to completion.
Once you’ve found a property you love and confirmed your budget, your first step is to submit a formal offer. This usually happens through your estate agent, who communicates it clearly to the seller.
At this stage, you should already have:
You can explore current listings and real-time price benchmarks through Properties for Sale in Lanzarote, which gives you a reliable sense of market value across different areas.
Sellers will either accept, reject or counter your offer. Negotiation is common, and your agent should guide you based on market conditions.
Once your offer is accepted, the property is taken off the market through a reservation agreement. This usually involves a small deposit (€3,000–€6,000), although this varies.
The reservation:
Your lawyer will review the reservation terms to ensure the agreement doesn’t bind you unfairly.
This is the most critical stage when you’re buying property in Lanzarote. Your lawyer checks:
For premium homes, many buyers explore higher-end options through exclusive properties where licences, extensions and modern specifications require deeper scrutiny.
Most issues can be resolved, but if your lawyer uncovers something serious, you can walk away at this point.
About two weeks after the reservation, buyers usually sign the private contract. This is the binding stage, where you typically pay 10 per cent of the purchase price.
This contract confirms:
Once this document is signed, both parties are legally committed. If you decide not to go ahead without a valid legal reason, you forfeit your deposit. If the seller withdraws, they must return double your deposit.
Step 5: Mortgage Approval (If applicable)
If you are financing your purchase, the bank will now complete:
Non-residents normally borrow up to 60–70 per cent of the property value. The bank will then issue a formal mortgage offer with the final terms.
If you’re selling a property elsewhere to fund the purchase, you can request a free valuation to know exactly where your buying power stands.
This is the official transfer of ownership and the moment your purchase becomes legally recognised.
At the notary:
It’s essential to have your lawyer present. Even fluent Spanish speakers often don’t fully understand legal terminology and Clauses.
Once complete, the notary registers your deed before it is formally updated at the land registry.
With limited land availability, strong tourism, and environmental protections, Lanzarote house prices tend to be more resilient than many mainland markets. Several factors influence pricing:
Coastal areas like Puerto del Carmen, Playa Blanca and Costa Teguise carry premium values due to their proximity to beaches, amenities, and year-round tourist activity.
Homes with tourist licence eligibility are highly desirable, especially villas with private outdoor space.
Renovated homes or modernised villas command stronger prices than older properties needing refurbishment.
A south-facing terrace with sea views can elevate the property’s value significantly.
Because the market shifts steadily rather than rapidly, buyers benefit from predictability and long-term stability. You can track these patterns through the continuously updated listings on the Lanzarote property market via Roper Properties.
Even experienced property buyers encounter unexpected challenges when navigating a foreign system. Here are the mistakes we see most often, and how to avoid them:
Each municipality has strict zoning rules. Properties in residential-only areas cannot legally offer holiday lets, even if other homes nearby appear to do so. Always confirm eligibility before falling in love with a home based on rental potential.
Many buyers overlook valuation fees, registry costs, community charges, or ongoing non-resident taxes. This is why understanding the total budgeting picture is essential.
Unregistered works can lead to fines, delays or even complications with insurance. Always insist that your lawyer confirms all structures are legal.
In Lanzarote’s winter months, north-facing homes can feel surprisingly cool and shaded. Orientation has a real impact on lifestyle, especially for year-round residents.
Some buyers rush into a reservation agreement without checking its fairness. This exposes them to risk, especially if the seller withdraws or if hidden issues emerge later.
In Spain, furniture, appliances, and fixtures are not automatically included unless written into the contract. Always list items clearly.
Their job is to represent the seller, not protect you. Independent legal advice is critical for a safe purchase.
Buying a home here isn’t just about lifestyle or sunshine. Lanzarote benefits from a rare combination of factors that create long-term resilience: planning laws that protect natural landscapes, limited construction, consistently strong international buyer demand, and a year-round tourism economy that supports rental stability. For many of our clients, the decision to buy a home in Lanzarote has been one of the most rewarding investments they’ve made, both personally and financially.
Because the island avoids the “boom and bust” extremes seen in other destinations, buyers gain long-term confidence and the ability to plan their future with clarity. Whether you’re searching for a peaceful villa, a lock-up-and-leave apartment or a rental-friendly property, Lanzarote offers dependable value backed by strong fundamentals.
Purchasing property abroad is a big step, and having the right guidance changes everything. At Roper Properties, we help you navigate each stage with confidence, from evaluating listings and understanding full cost transparency to completing legal checks and securing a smooth handover on completion day.
If you’re thinking about buying property in Lanzarote, or simply want to explore your options with no pressure, we’re here to support you with clear advice and a friendly, professional approach. Your perfect Lanzarote home could be closer than you think, and we’re ready to help you find it.
