Record Property Inheritance in the Canary Islands
Never before have so many homes been inherited in the Canary Islands as now. Becoming a property owner through a family legacy is increasingly common across the archipelago. In the first half of 2025, inheritance-based real estate transactions surged by 11%, reaching an all-time high. Between January and June, 3,049 properties changed hands this way—the first time the 3,000-mark has been surpassed in a six-month period.
Why Inheritance Transactions Are Booming
Two key factors drive this trend: the islands’ aging population, which has increased the number of deaths, and the regional government’s reintroduction of a 99.9% tax relief on inheritance and gift taxes in 2023. This incentive has significantly reduced cases where beneficiaries refuse inheritances due to tax burdens.
A Sweet Spot for the Canarian Housing Market
The Canary Islands’ real estate market is thriving, with overall transactions growing by over 8% in early 2025—totaling 20,230 properties. While traditional sales dominate (13,118 transactions, up 6.6%), the fastest growth comes from less common methods like foreclosures, debt settlements, and court-allocated properties, which surged by 13%. Inheritances, meanwhile, rose by 11%, adding 307 more transactions than the previous year.
The Great Wealth Transfer: Baby Boomers to Millennials
The rise in inherited properties stems from Canarias’ growing elderly population and the fact that more citizens now own homes to pass down. This trend will intensify as baby boomers—a generation that benefited from economic expansion—bequeath their assets to millennials in what’s being called the “Great Wealth Transfer.” However, this shift won’t be equitable. While some millennials will receive substantial inheritances, others may get little, exacerbating wealth inequality.
The Inheritance Tax Debate
Proponents of inheritance taxes argue they help redistribute wealth, while critics highlight disparities between regions and the double taxation issue (since assets were already taxed when acquired). In some cases, families must sell inherited property just to pay tax bills. Canarias’ near-total tax exemption has reduced inheritance refusals to their lowest since 2017, though many still decline inheritances due to associated debts.
Inheritance: A Lifeline in a Tight Housing Market
With soaring prices and scarce supply, inheriting a home has become the only path to ownership for many Canarians. In early 2025, heirs accounted for 15% of new property acquisitions—a clear sign of how deeply this trend is reshaping the islands’ housing landscape.
