Top 5 Mistakes Foreigners Make (and How to Avoid Them)

Introduction: Paradise Isn’t Always Plug-and-Play,
How To: Building a House in Tenerife

Tenerife the Island of Eternal Spring is a dream destination for many looking to build their ideal home. Foreigners made up over 40% of property buyers in the Canary Islands in recent years, especially from the UK, Germany, and Italy. But building a house in Tenerife isn’t always sunshine and palm trees. It comes with unique legal, environmental, and financial complexities that surprise even seasoned investors.

This guide breaks down the top 5 mistakes foreigners make when building a house in Tenerife and how you can sidestep them to build smarter, safer, and stress-free.

1. Building Without a Proper Tenerife Building Permit

Skipping permits is the #1 (costly) mistake. Even minor renovations like adding a wall or installing a pool typically require approval.

Why it matters:

• You risk fines, stop-work orders, or even demolition

• Illegal structures don’t count when selling or mortgaging

• Aerial inspections now spot unpermitted works quickly

How to avoid it:

• Always apply for a “licencia de obra” before starting

• Check if your work is “obra menor” (minor) or “obra mayor” (major)

• Work with a local architect to submit plans and deal with Town Hall

2. Underestimating Bureaucracy and Timelines

Spain is known for “mañana” culture and Building a House in Tenerife is no exception. A permit can take weeks or months, especially if your land is in a protected zone.

Common issues:

• Delays due to incomplete paperwork

• August = vacation shutdown in many municipalities

• Approval may require regional or environmental clearance

How to handle it:

• Don’t book contractors before permit is approved

• Hire a gestor (legal admin expert) to navigate red tape

• Submit all documents: technical plans, surveys, fees, etc.

3. Hiring Unlicensed Builders or Skipping Architects

Some foreigners try to save money with informal labor. But Spain requires licensed professionals for structural work.

What can go wrong:

• Shoddy work, no warranties, no legal protection

• You’re liable if an uninsured worker gets hurt

• Banks won’t accept houses not certified by licensed architects

Pro tip:

• Only hire contractors who are “colegiados” (registered)

• Use written contracts in both languages

• Ask for references and visit past work sites

4. Ignoring Tenerife’s Climate and Terrain

Tenerife’s microclimates vary wildly, it’s not just beaches and sun.

What to consider:

• Damp-proofing in humid northern zones

• Thermal insulation and ventilation for hot, dry south

• Materials that resist salt, wind, and sun (e.g., stainless steel, UV-resistant paints)

• Good drainage and slope analysis in hillside areas

Smart moves:

• Do a geotechnical study of your land

• Work with architects who know the island

• Adapt your design to local weather, not your home country

5. Poor Budgeting and Missing Legal Costs

Many underestimate the true cost of building a house in Tenerife.

Extra costs to watch for:

• Permit and ICIO tax: 2–6% of the budget

• Architect and technical fees (usually % of project cost)

• Insurance: Decennial liability, construction risk

• Legal and translation help, utility hookup fees, topographic surveys

• Annual property taxes increase after build completion

Budget tip:

• Set aside 10–15% contingency

• Always verify real land status before buying (urban vs rustic)

• Plan long-term: some builds take 12–24 months

Conclusion: Build Smart. Build Local. Build for the Long Run.

🏝️ Still wondering if building a house in Tenerife is worth it?

Here’s the thing: construction on this island isn’t just about permits and materials, it’s about aligning with a lifestyle. The light. The rhythm. The views. If done right, your home becomes more than just a structure, it becomes a sanctuary.

✨ And there’s a growing shift toward quality, sustainability, and personalized builds, especially among international buyers. Many choose to custom-build rather than buy pre-owned, precisely because they want a home that matches the unique beauty and challenges of the island. But that dream only works if you build with foresight and integrity.

🌿 Bonus tip: consider integrating eco-friendly features like solar panels (Tenerife is one of Europe’s sunniest places!), greywater recycling, or passive cooling systems. Not only do these reduce utility bills, they also future-proof your property and support the island’s move toward sustainable living.

And finally…

We’re not just saying this as advisors, we’ve walked this road ourselves. We moved to Tenerife with a dream and a car full of boxes. We’ve faced the red tape, learned the microclimates, and now we build villas for people who want to make this their real home, not just a postcard.

So if you feel that magnetic pull to the island, like we did, let us help you make it real. 🌺

Building a house in Tenerife can be deeply rewarding, if done right. By avoiding these five critical mistakes, you protect your budget, timeline, and peace of mind.

Whether it’s navigating the permit maze, adapting to local microclimates, or finding the right team, success lies in local expertise and long-term thinking.

We fell in love with this island years ago, and today we not only build homes here, we help others do the same. If your dream is to build a villa in Tenerife, we’d be happy to share our insights and guide you through each step.

👉 Book a free consultation, let’s make your Tenerife dream a reality, responsibly.