Tenerife has become one of the most popular retirement destinations in Europe. With its mild year-round climate, quality healthcare system, peaceful lifestyle and excellent flight connections, the island attracts retirees from all over the continent — both EU and non-EU citizens (like those from the UK or Switzerland).

But one of the most common questions before making the move is:
 How much does it really cost to live in Tenerife as a retiree?

1. Housing: Buy or Rent?

Housing will likely be your largest monthly expense. There are two typical retiree profiles:

• Buying property: Often chosen as a long-term investment or permanent residence. Average price in Tenerife is around €2,200/m², although it’s lower in northern towns or inland areas.
   → Estimated monthly cost (mortgage, community fees, property tax): €300 – €600
  
• Renting: The southern areas (Adeje, Arona, Los Cristianos) tend to be more expensive due to tourist demand. The north (La Laguna, Tacoronte, El Sauzal) usually offers better value for money.
   → Average monthly rent (1–2 bedrooms): €650 – €1,000
  

🔎 Tip: Some retirees share accommodations within expat communities or co-living spaces to significantly reduce monthly costs.

2. Utilities & Community Fees

Utilities in Tenerife are generally more affordable than in other parts of Europe, thanks in part to lower local taxes.

📌 Total estimate for utilities: €130 – €200/month

3. Food & Groceries

One of the perks of living in Tenerife is the affordable cost of groceries, thanks to the island’s low tax system (IGIC instead of VAT) and abundance of local produce.

• Grocery shopping (for a couple): €250 – €400/month
  
• Eating out (set menu): €10 – €12
  
• Mid-range restaurant meal: €25 – €35 per person
  

🍊 Local tip: Municipal markets in La Laguna, Santa Cruz or Icod de los Vinos often have fresher produce and better prices than supermarkets.

4. Transport

Tenerife has a reliable public transport system, especially in the metropolitan area. Many retirees combine walking with the use of trams, buses (guaguas) and taxis.

🚗 Some retirees don’t own a car and prefer to rent one occasionally or use car-sharing services.

5. Healthcare & Insurance

If you’re an EU citizen and registered as a resident in Spain, you may access public healthcare using your S1 form. Non-EU retirees can opt for private health insurance or Spain’s public system via a special agreement.

🩺 Tip: Many retirees use public healthcare for general care and a basic private plan for faster access to specialists.

6. Leisure & Social Life

The lifestyle in Tenerife is calm but very sociable. There are expat clubs, cultural associations, hiking groups, yoga classes, language schools, and a wide variety of free outdoor events.

7. Total Monthly Cost Overview

Final Thoughts: Is Tenerife a Good Place to Retire?

Absolutely. Beyond the good weather, Tenerife offers high quality of life at a relatively affordable cost — especially compared to other Southern European destinations. The natural surroundings, healthcare services and active international community make it a place where many retirees don’t just move… they stay for good.

Thinking about retiring in Tenerife?
 At Asesoría Quintero, we can help you with your residency, healthcare, NIE, tax matters and more.
 Let us help you plan your new life with peace of mind.