Living in Tenerife has an almost irresistible appeal: the mild climate that graces this island and the rest of the archipelago throughout the year. It is always spring, even in December. Add to this the endless variety of landscapes within a radius of barely 50 kilometres: beach, mountains, forest, urban spaces, small villages…
Which is the best area of Tenerife to live in? Where should you live in Tenerife with children? What fiscal advantages does residing on the island offer? What are the transport links to the mainland like? … These are some of the questions many people ask when they consider moving to Tenerife.
The best of Tenerife: the capital or any of its other major municipalities
San Cristóbal de La Laguna, better known simply as La Laguna, is the most populated municipality in the province after Santa Cruz de Tenerife. In both locations you will find every kind of amenity, from shopping centres, cinemas and parks to health services, excellent transport links and places to cycle or exercise.
San Cristóbal de La Laguna is characterised by being a relatively small town. It was declared a UNESCO World Heritage Site in 1999, and its streets and buildings hold undeniable historic charm.
La Laguna is also home to an Astrophysics Observatory and the University of La Laguna — the first university in the Canary Islands.
Santa Cruz de Tenerife, as well as being the provincial capital, is a forward-looking city that attracts a large mainland population and immigrants from various countries, especially from South America. As the financial centre of the island, the wealth of employment opportunities can be a strong draw for those who want to work while enjoying the benefits of island life.
Beyond these two locations, municipalities such as Arona, Adeje and Granadilla de Abona are also highly appealing places to live in Tenerife with children, thanks to their school and healthcare services as well as leisure facilities.
The south of Tenerife is primarily a tourist area and is well known as a second home for citizens from northern European countries, who are drawn by the island's mild climate.
The Canary Islands enjoy a special insular regime that translates into lower tax rates. VAT does not apply in the archipelago; instead, there is the Canary Islands General Indirect Tax (IGIC), which has five bands ranging from 0% up to significantly higher rates. Nevertheless, the majority of goods are taxed at a rate of 7%.
There are also other costs that are virtually non-existent on the islands, such as the near absence of parking fees, no motorway tolls, and climate-related savings such as having no need for heating or air conditioning for virtually any part of the year.
With an average temperature of around 25 degrees throughout the year, this energy saving is, at the very least, an added incentive to establish residency on the island.
All the islands have an airport or airfield, with the exception of La Graciosa. Tenerife has two, so the best area of Tenerife to live in, from a purely infrastructural standpoint, will be one that is well connected to these transport hubs.
However, the smaller islands — all of them except the two that host the provincial capitals — offer a more limited flight schedule, with later connections to the Iberian Peninsula and the other islands.
In addition, all the islands have ports for sea crossings. Several ferry companies operate maritime routes on a weekly basis, and you can take your car on board; the journey takes approximately 36 hours.

All things considered, the best area of Tenerife to live in, when speaking of the province as a whole, is the island of Tenerife itself, in its most populous municipalities.
Living in Tenerife means enjoying a wonderfully mild climate year-round, albeit with the inherent challenges of being an outermost region, far from the continental mainland. The best way to manage this is to live on the island of Tenerife itself.
Taking everything into account, making the move to Tenerife and establishing your fiscal residence there can offer countless advantages that are well worth considering.
It depends on your priorities. The south (Adeje, Arona) is ideal if you value year-round sunshine and an international lifestyle. The north (Puerto de la Cruz, La Orotava) suits those who prefer a cooler climate, nature and more affordable prices. Santa Cruz/La Laguna is the best choice if you need full urban services and employment opportunities. See the detailed comparison at south Tenerife and north Tenerife.
Realistic estimate (2026): rent 600–1,200 €/month (varies by area), utilities (electricity/water/gas/internet) 150–250 €, community fees 30–80 €, groceries 350–500 €, transport 100–300 €, leisure 200–500 €. A reasonable monthly total for a comfortable life as a couple: 1,800–3,000 €. Cheaper than Madrid or Barcelona, slightly more expensive than mid-sized mainland cities.
In central urban areas (Santa Cruz centre, La Laguna old town) you can get by without a car: there is a good bus network and a tram line. In the rest of the island (south, residential north, outskirts) a car is practically essential: bus services have limited frequencies and the mountainous terrain makes distances feel much longer. To explore the island freely, a car is your best friend.
Exceptional. Average coastal temperature: 18–26°C all year round (lows rarely below 14°C in winter, highs rarely above 30°C in summer). Differences by zone: the south is warmer and drier (24–28°C annual average), the north is cooler and more humid (20–23°C annual average, more rainfall and low cloud cover known as "panza de burro"). The summit of Teide can see snow in winter.
Island life (cars, appliances and imported goods are more expensive and take longer to arrive), a more limited job market (except in tourism, technology through ZEC, healthcare and education), distance from family and friends on the mainland (cheap flights thanks to the resident discount, but travel time still applies), and calima 4–8 days a year (Saharan dust). For most people, the advantages far outweigh the drawbacks.