"Is Tenerife expensive?" is one of the first questions when planning a trip. The honest answer is: not necessarily. The budget changes hugely depending on where you sleep, when you travel and how many paid activities you choose. The Canaries apply the IGIC, with a general rate of 7% below mainland Spain's standard 21% VAT, but the tax advantage doesn't mean everything costs less. What really pushes the bill up is mainly accommodation in the most sought-after areas, big parks, excursions, tourist restaurants and car hire in high season. Here's what tends to be cheap, what weighs on the budget and how to keep it down.
The tax advantage (and its limits)
The Canaries apply the IGIC, with a general rate of 7%, below mainland Spain's standard 21% VAT (there are also different rates — 0%, 3%, 15% and others — depending on the product). This tax structure helps keep prices in some categories lower, but it's no guarantee: the final price also depends on importing, transport, distribution and competition, and varies a lot from product to product. In practice:
- Fuel: it benefits from the Canaries' specific tax regime and is often cheaper, but the pump price varies over time and between stations — check it before your trip.
- Alcohol and tobacco: here the tax regime can mean noticeable differences.
- Supermarket shopping: on some products (fresh fruit and veg, for example) the tax is low or zero, while other imported goods may not be cheap.
- There's no general per-night tourist tax (always check for updates).
And then there's the most important thing: a huge number of the island's best experiences are free — beaches, natural pools, the Teide Park, trails, sunsets and starry skies. We gather them in the guide on free things to do in Tenerife. And to eat well for little, the place is the guachinches.
Where the bill really adds up
Tenerife only becomes "expensive" if you don't watch a few items, which are exactly the ones that weigh most on the budget:
- The big parks (Siam Park, Loro Parque): the single biggest expense of many holidays.
- The Teide cable car and boat trips / whale watching.
- Organised excursions and guided tours.
- Restaurants in the very touristy areas, often pricier and less authentic.
- Car hire in high season and some transfers or parking.
How much it costs, broadly
It's hard to give fixed figures (prices change), but the order of magnitude is clear: eating local — a menú del día, a local beer, a dish at a guachinche — costs little; the big theme parks are the most demanding item; excursions and trips sit in between. In practice, with local choices and activities picked carefully you stay low; it's stacking up paid attractions that pushes the total up. For a realistic breakdown by category (accommodation, food, transport, activities) there's the guide on how much a week in Tenerife costs.
How to keep the budget down
- Eat local: menú del día, markets and guachinches often offer better value for money than the more touristy places.
- Fill your holiday with free experiences: nature, beaches, villages, stars.
- Use public transport instead of taxis for getting around.
- Avoid the restaurants on the most touristy little squares: just walk a couple of streets further.
- Travel, if you can, in low season: flights and accommodation cost less.
To choose the cheapest period there's the guide on when to visit Tenerife, and the typical mistakes that make you spend double are in the guide on the mistakes to avoid.
And on the things that do cost?
It's precisely on the items that weigh — activities, attractions, restaurants — that the Tenerife Premium Card can help: it gives access to discounts at partners across the island, with percentages and conditions that vary from partner to partner. The idea is simple: enjoy for free everything that's free, eat local, and when you decide to pay for something — a park, an excursion, a dinner — check whether you can save with the card. That's how a Tenerife holiday stays light on the wallet.
In short
Tenerife isn't necessarily an expensive destination, but it isn't cheap by default either: a lot depends on the area, the season and your travel style. The IGIC tax regime helps keep some prices down and there's no general tourist tax, while what pushes the bill up is mainly accommodation in the most sought-after areas, big parks, excursions and tourist restaurants. Eat local, make the most of the free stuff, use public transport and look for discounts on paid activities: done this way, it comes out lighter on the wallet than many people expect.
