Canary Islands Finalizes Compensation for Homes Buried by La Palma Volcano
In one year, 16 payment orders have been issued for a total of 1,415 beneficiaries
The Government of the Canary Islands, through the Ministry of Presidency, Public Administration, Justice and Security, has completed the payment of full‑value compensation to all people who lost their primary residence to the Tajogaite eruption on La Palma. Twenty‑five cases of first‑time homes remain unpaid because of documentation problems (inheritance issues, locating owners, etc.). Those will be settled once the paperwork is resolved.
From July 2024, when the first payment plan was launched, through July 2025, the Vice‑Ministry for Economic and Social Recovery of La Palma issued a total of 16 payment orders covering compensation for 800 primary homes, benefiting 1,415 individuals in all.
To finance the compensation, the Canary Islands government contributed €50 million from the 2024 regional budget and another €50 million from the 2025 budget. An additional €100 million was provided by the Spanish State from the 2023 General State Budget, transferred in January 2024.
After signing the final payment order for all primary homes destroyed by the volcano, the Ministry of Presidency began, on 31 July, the removal of the first two empty wooden houses in El Paso. On 19 August, the removal of empty container houses started in Los Llanos de Aridane. This process will continue as the temporary dwellings owned by the ICAVI are vacated.
From now on, through the ICAVI, occupants of these temporary units will be given a reasonable period to find their own permanent housing. Those who, despite receiving compensation, cannot afford a new home will be eligible—based on social criteria—to rent any of the 53 newly purchased houses financed by the Ministry of Presidency and built in Los Llanos de Aridane. Construction is underway and the units are expected to be completed within 15 months.
The Ministry of Presidency has transferred €24 million to the Cabildo of La Palma for the construction or purchase of public housing, €28.7 million to the municipality of Los Llanos de Aridane, €3 million to the municipality of Villa de Mazo, and €800,000 to the municipality of El Paso. An additional €22 million from the ICAV will also be used for housing construction on the island. These homes will serve both volcano‑affected families and other applicants registered in the Public Registry of Protected‑Housing Seekers.
Second Homes and Farms
With the primary‑home compensations completed, the Canary Islands government will begin, in September, processing applications to pay compensation for second homes in 2026. It will also continue to request that the Spanish Government provide the €100 million allocated for 2024 and another €100 million for 2025, needed to compensate for more than 1,300 farms lost under the lava flow.