Yes, it's a good place for digital workers, but don't expect some incredible tech scene. The expat community is alright. I recommend southern Tenerife, but many people are on Gran Canaria too.

Any company you start there will have to do business outside. There are excellent tax conditions, but not a lot of workers and very few customers, if any.

Same goes for freelancing, you'll have to work with clients outside the islands if you expect more than 10% of a usual tech salary.