Rich, poor and the Canaries: why the income gap is widening

The Canaries feel cheap to many visitors: coffee for next to nothing, a menú del día under ten euros, gentle rents in some corners. At the same time, the people who live here earn, on average, less than anywhere else in Spain. That coexistence explains a lot about daily life on the islands.

Now new figures show a second movement: the top incomes are growing markedly faster than those of the broad middle. So the gap is opening — and that touches not just statisticians but the housing market, prices and the general mood.

What the numbers say

According to the analyses, the highest incomes in the Canaries are growing by around 12.7% a year — about twice as fast as the middle class. For context: average income per person was recently about €13,595 (2023), up 8.8%, and remains the lowest of any Spanish region.

Put differently: things are improving overall, but much faster at the top. That is exactly what a widening gap looks like.

Why the gap is opening

No single reason explains it. The island economy leans heavily on tourism, where many service wages are low. Those who own capital, property or a sought-after business, by contrast, benefit from rising values and growing demand. Add high housing costs in the popular spots, which hit the middle harder than the top.

What it means for newcomers

People who arrive as digital nomads or retirees often bring an income that is a multiple of the local average — the nomad visa alone requires around €2,850 a month. For many that is a good life, but it adds pressure to rents and prices in exactly the neighbourhoods locals like too.

Two sides of the same island

The numbers are not a simple good-versus-bad story. More wealth at the top brings investment, jobs and visibility; at the same time many families feel life getting pricier even as the statistics show a plus. Politicians and associations debate housing, wages and diversifying the economy — answers that take time.