After the occupation, the Castilians imposed a new economic model based on single-crop cultivation. First sugar cane then wine, an important item of trade with England. In this era the first institutions of colonial government were founded. Gran Canaria, a colony of Castilla since 1480 and Tenerife, a Spanish colony since 1495, had both separate governors.

The cities of Santa Cruz de Tenerife and Las Palmas de Gran Canaria became stopping points for the Spanish invaders, traders and missionaries on their way to the New World. This trade route brought great prosperity to some of the social sectors of the islands. The islands became quite wealthy and soon were attracting merchants and adventurers from all over Europe. Magnificent palaces and churches were built on La Palma during this busy, prosperous period. The Church of El Salvador survived as one of the island’s finest examples of the architecture of the 16th century.

The Canaries wealth invited attacks by pirates and privateers. Ottoman Turkish admiral and privateer Kemal Reis ventured into the Canaries in 1501, while Murat Reis the Elder captured Lanzarote in 1585.

The most severe attack took place in 1599, during the Dutch War of Independence. A Dutch fleet of 74 ships and 12,000 men attacked the capital Las Palmas. The city had 3,500 of Gran Canaria‘s 8,545 inhabitants. The Dutch attacked the Castillo de la Luz, which guarded the harbour. The Canarians evacuated civilians from the city and the Castillo surrendered. But the city did not. The Dutch moved inland but Canary cavalry drove them back to Tamaraceite, near the city.

The Dutch then laid siege to the city demanding the surrender of all its wealth. They received 12 sheep and 3 calves. Furious, the Dutch sent 4,000 soldiers to attack the Council of the Canaries, who were sheltering in the village of Santa Brígida. 300 Canarian soldiers ambushed the Dutch in the village of Monte Lentiscal, killing 150 and forcing the rest to retreat. The Dutch concentrated on Las Palmas, attempting to burn it down. The Dutch pillaged Maspalomas on the southern coast of Gran Canaria, San Sebastian on La Gomera and Santa Cruz on La Palma. Eventually they gave up the siege of Las Palmas and withdrew.

Another noteworthy attack occurred in 1797, when Santa Cruz de Tenerife was attacked by a British fleet commanded by the future Lord Nelson on July 25th. The British were repulsed losing almost 400 men. It was during this battle that Nelson lost his right arm.