Why Lanzarote? Let's See....

Many people relocate each year to live in Lanzarote either full time or for between 3 - 6 months. The main reasons are to live in a beautiful location with a wonderful lifestyle to boot!

There are other benefits as well though, even if you plan to visit Lanzarote for a holiday or weekend break. The reasons are to do with the cost of living in The Canary Islands, which enjoy a different taxation rate to the rest of Spain.

Although still inside the E.U, The Canaries are part of a tax regime with much lower sales taxes than in the rest of Europe. This means, there are considerable price reductions for most products that you buy here.

Obviously, the cost of living in Lanzarote depends on your own circumstances. You can safely say that it is far cheaper than the cost of living in most Northern European countries.

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So let’s have a closer look at cost of living in Lanzarote. Is Lanzarote expensive or cheap and what to expect in 2023

Electricity in Lanzarote

• The average price of electricity is one quarter of a cent per 1 kWh (at the time of writing, 2024). It would be surprising if that was ever asked about during a table quiz!
• So let's put things into context based on a small family with normal usage. It comes in at around 50 euro per month in a property without a pool. This figure would increase by a little during the hotter months if air conditioning is being used.

Home Gas Bills in Lanzarote

• There are none! In fact there is not even a utilities company on the island that supply mains gas. The climate means that there is little need for extra heating systems aside from home water heaters powered by electricity.
• Very few properties on the island feature a fireplace or any type of heating system in fact. Homes that do, are generally found inland or on higher ground. The fact that mother nature takes care of your home heating bills 12 months of the year, is a significant saving in comparison to northern Europe.

Household Water Bills in Lanzarote

• There is a two tier structure when it comes to the payment of household water on Lanzarote island. If you have residency then you will pay a slightly lower amount per unit but 30 euro per month would be a average to budget within.That is based on usage by a small family, without sacrificing shower or bath times. It’s easier to conserve household water use in Lanzarote anyway.

TV and Internet Packages in Lanzarote

• TV and Internet packages are similarly priced to ones found in other European countries. The good news is that fast fiber optic speeds are available on the island too. Companies such as Movistar and Orange offer a choice of Spanish TV packages. Streaming services are widely available for your home country as well as satellite installers to provide home channel access.
• For home office use you won't have issues finding a suitable provider for fast internet also. Obviously a fantasic option for if you can maintain full time work remotely, getting paid Northern European income yet having much lower outgoings. An ideal combination while enjoying life on beautiful sunny Lanzarote island. Starting prices for residential packages from around 39 euro per month.

Annual Property Tax in Lanzarote

• If you buy a property in Lanzarote there is an annual property tax called I.B.I (Impuesto sobre Bienes Inmuebles) based on what is known as the catastral value of your home. Basically the larger the property size, the higher the bill.
• Now that is the scary sounding bit out of the way. An average size 3 bed home on Lanzarote island would be charged between 300€ to 400€ per year. That is much less than comparable household tax payments than in Ireland, the United Kingdom or other parts of Europe.
• The taxes are used to maintain local infrastructure and amenities. Bear in mind that the IBI tax is payable by the property owner and not a tenant of a property.

Household Bin Collection Taxes in Lanzarote

• Known more colloquially as the ‘Basura’ taxes which are also payable annually in your local Town Hall. These cover the collection of rubbish from the communal bins dotted around the various localities. They are not outrageously priced taxes, averaging around 100 euro annually.

Food Shopping in Lanzarote

• There is a very decent range of stores to choose from in Lanzarote to do your food shopping. In recent years Mercadona, Aldi and Overseas British Supermarket have set up outlets here, creating a wider choice and decresing price through competition. Food prices are cheaper in most cases than those found in European cities, with familiar brands quite easily available. 
• Chacon and Hiperdino are local supermarket chains that also offer a great selection of foods. If you are looking for 'farm to fork shopping', there are regular farmers markets to enjoy. One of the largest can be found in Tinajo which is well worth a visit. Pick up some delicious locally grown tomatoes (of all shapes) or artesan made mojo, to get a taste of real Lanzarote.

Shopping for Clothes and Prices in Lanzarote 

• Small boutiques can be found within the various shopping districts of Arrecife. Puerto Calero and Marina Rubicon feature higher end brands. All are simply a pleasure to shop or browse through, even if you are not purchasing immediately. 
• Our recommendation is to pop into some of the local stores in Arrecife along Calle Real or wander over to the Marina. Your curiosity can result in finding something unique.
• Whether you are seeking designer wear or highstreet fashions, Lanzarote has it all and at every price in between. Internationally recognised names such as Zara and H&M are well represented on the island. Lefties, which is a Spanish version of Primark providing up to date, cost effective fashion
• Arrecife has also seen the arrival of a new shopping centre called the Open Mall recently in 2022, which is a welcome addition for shoppers near and far.

>>Read More: Related Article on Why Lanzarote is So Inexpensive

Drinks and Dining Out in Lanzarote

• Eating out in Lanzarote is a pleasure due to the choice of local and international menus on offer. There is real value to be found all around the island. It is well worth going in a mystery cuisine tour to find your perfect place and meal. All budgets are catered to. In fact many times, when we are viewing homes we notice how little a kitchen has been used!

• To give you an idea, quality 3 course meals from as little as 10 euro per person can be found. Great emphasis is placed on food in Lanzarote, as in the rest of Spain. You will find restaurants that specialise in everything from vegetarian foods, to big hearty steak restaurants with Spanish/Argentinian beef cooked to perfection.

• Whatever budget you wish to work within, there is always a super Lanzarote restaurant waiting to satisfy your tastebuds.

Alternatively, if you want a taste of real Lanzarote from the comfort of your own home then Espacio Lazarote Real Estate simply cannot recommend Antonio previously off Cook In Lanzarote who can bring his skills to you!

(More details will Follow)

He truly brings a passion for Canarian Cuisine to life, through unique creations using locally sourced quality produce.

You may even find inspiration to create your own special taste of Lanzarote at home with his Top 5 Foods to Eat in Lanzarote recipes based on traditional dishes. Ask for them when you see him!

Pastimes, Sports Clubs, Activities & Attractions Costs

• Lanzarote has every imaginable hobby, sport, pastime and club available that you can think of. Gym membership average around 40 euro per month with lots of Paleo/ Crossfit style clubs to chose from throughout the island.

• Want to visit tourist attractions or rent a bike to scoot around and explore? Then in many cases a discount is available by showing your Residencia Card. Government managed tourist attractions will provide a discount in this way and some private buisnesses too. Bear in mind that not all private business owners can provide this, especially recuperating after recent events. Generally though there is a acknowlegement for supporting local business.

Subsidised Travel for Lanzarote Residents

• On the other hand, flights or ferries to other Canary Islands and to the Spanish mainland are heavily subsidised for residents. This helps maintain a link throughout the islands and Spanish peninsula for resident and business travellers alike with discounts of 50% in many cases.
• Travel to and from the Balearic Islands such as Majorca may well be on the cards soon also. Discussions regarding direct flights from the Canary Islands to those lovely parts of the world are underway. This provides another wonderful reason to base yourself in Lanzarote, The Island of Eternal Spring, of course.

 Running a Car in Lanzarote

• If you are living, working or have a family in Lanzarote, a car will more than likely be necessary. School runs, getting to meetings or weekly shopping probably means that a car will be needed. Maybe not so much if you are going to live in Lanzarote in retirement or for relaxation, however running a car in here is extremely inexpensive anyway.
• Fuel costs on average will cost you around 1.45 euro per litre. Lanzarote Car Tax is on average 90 euro per year and car Insurance on a standard 4 door would cost around 500 euros. There is a car inspection called an I.T.V (same as an M.O.T/ N.C.T) that certifies the roadworthiness of cars, costing 34 - 48 euro in test centres located in Arrecife and Playa Honda. 
• There are rarely unexpected delays or build up of traffic where a car would idling in mixed use motoring. This alone can cut costs car ownership even further and having no rush hours to contend with, is better for your heart and health as well!

Public transport in Lanzarote

• Public transport in Lanzarote is cheap and reliable with a solid network of intercity buses available. Fares are very reasonable too. Expect to pay somewhere between 2€ - 4€ euro for short to longer journeys. The roads in Lanzarote island and the buses themselves are of a high standard. 
• You can usually get seated onboard at any time which makes any journey more pleasant. If you do intend to rely on bus routes while living here, then it's a good idea to get your contactless Bono Bus card and save yourself another 10-50%. Check out the bus company website for more details and to download their app here: https://arrecifebus.com/

 Lanzarote Schools and Education

• Lanzarote island is very welcoming of new arrivals within their school system and are well used to having a mix of nationalities. National schools conduct classes in Spanish. For families moving here who need school placements, it might seem daunting to join a Spanish speaking class, however it is done very regularly so don't worry.
• More than likely your child won't be the only person feeling aprehensive in the same class for the same reasons. Lots of other English, German, French speaking children etc, find themselves in the same situation. In no time at all you will find that they are correcting your Spanish language attempts! National schooling is free to a large extent and the quality of education is high. 
• If you do require an English speaking private school then you will be looking at fees of around 6.000 euro per annum per child in one of the first rate private schools such as:
• Collegio Hispano Britanico in Puerto del Carmen
• Centro Educacional Daos in Matagorda
• The Colegio Arenas Internacional in Costa Teguise
• The British school of Lanzarote in Tahiche
• Each has a long history or superb education with a very international outlook. The beauty of any school here in Lanzarote is that there is a great emphasis on outdoor activities also, away from the stuffiness of a classroom, which is down to the wonderful weather we are lucky to enjoy here of course!

Health Insurance Costs in Lanzarote

• Private Health Insurance is comparable to Irish and UK prices. Health Insurance prices obviously depend a lot on your individual case however and a great place to start for is with C1 Brokers. They are an Island based Insurance Brokerage with access to multiple companies, ensuring a great quote and coverage. 
• One mistake that E.U nationals often make when arriving is to think that the EHIC / E111 Card will provide full coverage in case of accident. This is not the entirely case. Private insurance is recommended once you have your residencia in place or a least you get your Social Security number so you can register with a local doctor. Medical care on the island is of a high standard, but just take care in the meantime by having yourself/family correcty covered.

Recommended Article: Pros and Cons of Living in Lanzarote (2024)

Lanzarote Long Term Property Rental Prices

• If you are not buying a property in Lanzarote then the largest expense of living here would be accommodation. Long term rental of a 3 bedroom property in one of the main resorts could be around 1.100€ to 1.500€ per month (at the time of writing in 2023) and 2 bedroom apartments are fetching circa 850€ - 1,000€ per month. 
• The cost of living in Lanzarote, to a large extent, is location dependent. Many people now look towards Arrecife which normally has more apartments on offer to rent for longer term living. Usually at a cheaper cost per month as well. 

Jose Mena is the most specialised long term rental property agents on the island working through English, German and Spanish to will make the process of renting long term in Lanzarote far more straighforward than you can imagine.

His professionalism and overall character is what you need to put your mind at ease during what could be a stressful undertaking.

Jose can be contacted here: Jose Agente Inmobiliario Lanzarote

Living in Lanzarote. What to Expect and Things to Consider

For many people, to live in the Canary Islands is a dream come true. Here we will look more at the general realities of living in Lanzarote and not focus as much on the cost.

Lanzarote, located just off the coast of West Africa and is known for it’s wonderful year round warm weather, gorgeous beaches, and dramatic volcanic landscape. It is a safe place that can provide a wonderful lifestyle for people of all ages, whether you are moving here for work, retirement as a family or individual.

There are so many activities on offer, whether you want to explore the island by foot or bike. Delve deep underwater and immerse yourself in another world or even sail to neighbouring islands. With a plethora of high impact and relaxation activities to choose from. Lanzarote's weather makes it possible to indulge in most things whenever you wish.

Finding a Location that Fits your Lifestyle

• For a small island, Lanzarote has a quite a diverse feel to it across the island that are suitable for permanent residence. Each has advantages and disadvantages of course. Tourist areas obviously have a different feeling than small towns for example. There is a busier vibe that suits some people but not all. In saying that, even resort areas on the island are far from the madness of other Spanish 'party central' type locations.

How about Village Life in Lanzarote?

• Living in smaller villages will give you a more authentic Spanish experience. Locals are a friendly bunch especially if you make an effort to speak Spanish. Daily traditions are still very evident such food shopping at the local butchers or grocers. It is reminiscent of days gone by perhaps, which is lovely.

• In general the further you are away from the coast, the less expensive a property will be. Weighing up your property needs is a very personal and lifestyle dependent thing.

More about searching for property in Lanzarote and buying a home can be found in this article: Steps to Buying Property in Lanzarote

Lanzarote's Cost of Living versus Mainland Spain

We know that the cost of living in Lanzarote is lower than on the mainland of Spain but what are the typical price differences?

• On average rent prices are 23% less than in mainland Spain.
• Generally Lanzarote's consumer prices are 21% lower than Spain.
• Prices in Lanzarote restaurants are 27% lower than mainland Spain. 
• Prices in Lanzarote's supermarkets are generally 14% lower than Spain.

Misconceptions About Living in Lanzarote

You may have visited Lanzarote during summer months with the glorious sunshine and then go away thinking that it is like that all year round! It's not, but its not far off it either!

However let's have a look at some of the common misconceptions that people have about life in Lanzarote

The Rain in (Lanzarote) Spain, Stays Mostly on The Plane

• Although the temperature is always mild, even at the very coolest part of the year, it would not be true to say that it never rains in Lanzarote. It does and can do so in dramatic fashion. Usually however it is in short bursts which freshen up the island, gives the plants a good drink and allows the colours to blossom especially towards the north. 

English is Widely Spoken. You Never Need to Learn Spanish in Lanzarote

• In fairness this is probably true, however there's a difference between needing to learn and whether it would be a good idea to learn. Life in Lanzarote is simply easier and more enjoyable when you speak Spanish. Not everyone that you encounter will be able to speak English. 

• At some stage you might get frustrated and wish to order a meal more easily in places outside of the resorts, meet new people from different backgrounds or understand lyrics to music being played. There are multiple ways in which having Spanish will enrich the experience of life in Lanzarote. 

• Plus the fact that Spanish can be a common second language for German, Italian, French citizens here too, who may not be able to speak English. It can open up a whole new world of experiences for you.
• Try Your Hand (or mouth we should say) with the Easiest Way to Learn Spanish Here

Lanzarote is very Cliquey

• Even with a large expat community of UK, Irish, German, French and Italians in Lanzarote there tends to be a nice interaction between various nationalities.
• Maybe it is because the island is so small or maybe it is because of a similar mentality between people attracted to this island.
  
• The mentality here seems to revolve around quality of life rather than having to be part of a particular ‘set’. If you are considering a move to any of the Canary Islands, it has to be said that Lanzarote is definitely one of the most welcoming and open.

On Balance

There is no doubt that costs attached to living in Lanzarote are far cheaper than in Northern European countries. It is worth bearing in mind however that if you work here then wages can be much less than what you might be used to. 

Job variety is another area that is quite restricted. If you intend to relocate to Lanzarote and need employment, we strongly suggest that you pick up Spanish language skills to broaden your work possibilities.

The Lanzarote lifestyle is incredibly rewarding and much more relaxed than in other countries. This part is priceless in so many ways. The luxury of having so many sunny days with the possibility of hitting the beach pretty much whatever day you want, easily enriches the lives of people who make the move. 

Actually the luxury of planning things, knowing that the weather will be good, is another huge bonus.

Lanzarote island is a unique place for families and individuals, especially for those seeking a relaxed clean environment for a healthier lifestyle overall.

Have more Specific Questions About Buying Property in Lanzarote?

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You might also find this article usefull as a resource >> Buying Property for Sale in Lanzarote<< to help you further

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