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The following article was published in our article directory on November 4, 2021.
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Cost of Living in Lanzarote. Is Lanzarote Expensive?

Article Category: Advice

Author Name: Espacio Lanzarote Real Estate

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.

So let's have a closer look at cost of living in Lanzarote. Is Lanzarote expensive or cheap and what to expect in 2021/22

Electricity in Lanzarote
The average price of electricity is one-quarter of a cent per 1 kWh (at the time of writing, August 2021). 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 utility company on the island that supplies 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 an 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 fantastic option 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 cadastral 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 Rubbish 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 decreasing 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 artisan 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 high street 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 provide up-to-date fashions but are cost-effective also.

In general to deck yourself or a family out, you will find that prices are very reasonable with all styles and budgets catered to.

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.

Pastimes, Sports Clubs, Activities & Attractions Costs
Lanzarote has every imaginable hobby, sport, pastime, and club available that you can think of. Gym membership averages around 40 euros per month with lots of Paleo/ Crossfit style clubs to choose 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 operated tourist attractions will provide a discount in this way and some private businesses too.

Bear in mind that not all private business owners can provide this, especially recuperating after recent events. Generally, though there is an acknowledgment for supporting local business.

Subsidised Travel for Lanzarote Residents
On the other hand, flights or ferries to the 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 residents and business travelers 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. The 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 1.15 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 euros 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 of 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 on board 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.

Lanzarote Schools and Education
Lanzarote island is very welcoming of new arrivals within their school system and is 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 apprehensive 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.

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 an 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/your family correctly covered.


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 1.000€ to 1.500€ per month (at the time of writing in 2021) and 2 bedroom apartments are fetching circa 650€ - 900€ 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 property agent on the island working with Lanzarote Long Term Rentals. Jose works in English, German, and Spanish to will make the process of renting long term in Lanzarote far more straightforward than you can imagine. His professionalism and overall character are what you need to put your mind at ease during what could be a stressful undertaking.

To Contact Jose Mena directly. Facebook: 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 place, Lanzarote has quite a diverse feel to it across the island that is suitable for permanent residence. Each have 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.

Relocating to Lanzarote
Relocating to Lanzarote allows you to live in much a more relaxed environment, pretty much anywhere you relocate to on the island. It's a far cry from the hustle and bustle of 'normal city or suburban life'


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 as 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.

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 24% less than in mainland Spain.
Generally Lanzarote's consumer prices are 20% lower than Spain's.
Prices in Lanzarote restaurants are 28% lower than in mainland Spain.
Prices in Lanzarote's supermarkets are generally 15% lower than in Spain.


Misconceptions About Living in Lanzarote
You may have visited Lanzarote during the summer months with the glorious sunshine and then go away thinking that it is like that all year round! It's not, but it's 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 a dramatic fashion. Usually, however it is in short bursts which freshen up the island, give the plants a good drink, and allow the colours to blossom especially towards the north.

|English is so widely spoken that you would 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.


|Lanzarote is very Cliquey|

Even with a large ex-pat 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 the 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.

Overall, however, 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 life.

Like to talk with one of the team in Espacio Lanzarote Real Estate? We certainly, look forward to helping you find the right property for your Lanzarote, Spanish Island Lifestyle. If you are seriously thinking about tapping into the high-quality living standard that Lanzarote provides, then let's start your tailored property search.

Keywords: Property for sale in Lanzarote, lanzarote property, Property for sale in Puerto Del Carmen

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