Canary Islands Property Tax Coefficients Update

Overview

The Canary Islands' tax agency has announced updates to the coefficients used to estimate the market value of urban properties for tax purposes, effective January 2026. These coefficients are crucial for calculating taxes like property transfer, gift, and inheritance taxes, ensuring that property valuations reflect current market realities.

This revision follows a series of legal updates, including adjustments made in 2019, 2021, and 2023, which have progressively refined how property values are determined. The new coefficients account for recent changes in the urban real estate market, aiming for more accurate tax assessments.

Impact

The updated coefficients will influence how much residents pay when transferring property rights or inheriting assets, potentially impacting buyers, sellers, and heirs. Officials emphasize that these changes are part of ongoing efforts to modernize tax valuations, providing fairer and more precise assessments.

Publication and Implementation

Published in the Official Bulletin of the Canary Islands on November 28, 2025, the measure will come into force on January 1, 2026, and will apply to all affected transactions from that date onward.

Relevance

This update is particularly relevant for expats and residents involved in property transactions, helping them better understand current market values and tax obligations.

"These changes are part of ongoing efforts to modernize tax valuations, providing fairer and more precise assessments."