Three days after landing in Tenerife with two suitcases and a pension, I sat in a café in La Laguna watching retired couples stroll past in shorts – in February. Back in Birmingham, my neighbour was posting photos of frozen pipes. That contrast sealed it for me.
I retired to the Canary Islands eighteen months ago at 63. My wife and I chose Tenerife, but we have spent time on Gran Canaria and Lanzarote too. This is an honest breakdown of what retirement here actually costs and feels like – no sales pitch, just the numbers and the reality.
Monthly costs for two people
We track everything in a shared spreadsheet. Here is an average month in the south of Tenerife, based on eighteen months of data:
- Rent: €850 for a two-bedroom flat in Los Cristianos with a terrace and sea view
- Groceries: €450-500 (Mercadona for staples, Alcampo for bulk, local markets for fruit)
- Health insurance: €130/month combined – we use Adeslas, which covers GP visits, specialists, and dental. My wife also registered with the public system using her S1 form.
- Utilities: €75-90 (no central heating needed; air conditioning runs maybe two months per year)
- Car: €55/month petrol, €340/year insurance with Mapfre, ITV inspection every two years
- Eating out: €200 – a proper lunch for two at a guachinche in the north costs €18-22 including local wine
- Leisure: €80-100 (cinema, a couple of day trips, swimming pool membership)
Total for two: roughly €1,950-2,150 per month. Our UK state pensions cover most of it – the UK State Pension is fully payable in Spain post-Brexit, deposited directly into our Spanish bank account each month. We spend less here than we did in Birmingham, and the quality of life is incomparably better.
Mercadona handles most of our grocery shopping. Prices run roughly 25-35% below what we paid at Sainsbury’s for an equivalent basket. We buy fresh fruit and vegetables at the Tuesday market in Los Cristianos – a full bag of avocados, bananas, and tomatoes for under €5.
Alcampo near Santa Cruz works well for bulk purchases and household goods.
Healthcare – the question everyone asks
If you hold an S1 form, you can access the Spanish public healthcare system. We registered at our local centro de salud in Los Cristianos within two weeks of arriving. GP appointments take about a week; specialist referrals are slower – my wife waited six weeks for a dermatologist.
We keep private insurance as a safety net – Adeslas quoted us €65 per person per month, which covers most things. Prescription costs through the public system are minimal: about €4 for a month’s supply of blood pressure medication.
The car question
You need a car – full stop. We bought a second-hand Opel Corsa for €5,200 from a dealer in Santa Cruz. Public transport on TITSA buses costs €1.45 per ride, and a Bono card gives you ten trips for about €8.
Getting to a doctor, a market, or an uncrowded beach requires your own vehicle. New cars on the Canaries attract 7% IGIC rather than mainland Spain’s 21% IVA, so if you prefer buying new, the islands offer a genuine saving.
Fuel is remarkably cheap – the Canary Islands do not charge the mainland’s hydrocarbon tax, so petrol runs 20-35 cents per litre less than Barcelona or Madrid. I check fuel prices on the Canary Islands weekly to find the best station near us. A full tank costs roughly €50 and lasts nearly three weeks.
What surprised us
The IGIC tax rate – 7% instead of mainland Spain’s 21% VAT – makes a real difference on bigger purchases. We bought a new washing machine for €380; on the mainland, the same model would have cost over €430. Electronics, furniture, and dining out all feel noticeably cheaper.
The retiree community is larger than I expected. We joined a walking group through an expat meetup in Playa de las Américas – about twenty regulars, mostly British and German, doing coastal hikes twice a week. Social isolation turned out to be a solvable problem.
The north of Tenerife surprised us most. La Laguna has proper cultural life – a theatre, university events open to the public, old-town restaurants with no tourist markup. We drive up once a week for lunch at a guachinche and a walk through the historic centre.
Who should retire here – and who should not
The Canary Islands suit retirees who want warm weather, affordable living, and access to EU healthcare without leaving Europe. The 22-28°C climate in the south means you can walk, swim, and eat outdoors every single day. Your pension stretches further and life slows down in the right way.
It does not suit people who need their grandchildren nearby or who expect everything to work with British efficiency. The paperwork for residency took us four months. Patience is not optional here.
One specific tip: get your NIE number at the Spanish consulate in the UK before you fly out. We did ours on arrival at Extranjeria in Santa Cruz and spent three months waiting for a cita previa appointment.
Once we had the NIE, registering on the padrón at the Ayuntamiento in Los Cristianos took a single morning. The TIE card application required NIE, padrón, proof of pension income, and health cover – the whole process took about two months from submission to collection.
Staying informed as a resident
Once you live here, you need local information – not tourist guides, but real updates about bus route changes, residency regulations, and pharmacy rosters during holidays. I follow Tenerife cost of living guide to stay on top of practical information that matters to residents. It has saved us from missed appointments and closed offices more than once.
Eighteen months in, my wife and I agree: this was the best decision we made. Not because it is perfect – the bureaucracy still irritates me, and I miss proper fish and chips. But every morning starts with sun, warmth, and a cost of living that lets us enjoy retirement instead of just surviving it.