Overnight co-leader Paul Casey carded a 68 to maintain his share of the lead along with Kenneth Ferrie, Soren Hansen, Simon Khan and Santiago Luna.
Martin-Benavides, playing in only his second professional event, collected five birdies on the front half at Golf Costa Adeje to make the turn at 16-under. He hit his third shot from off the green to six feet for a birdie at the par-5 11th and two-putted for birdie at the par-5 13th to match Casey atop the leaderboard.
The 17-year-old two-putted for birdie at the par-5 last to take the clubhouse lead. However, it wasn't long before Martin-Benavides had company.
Ferrie picked up his second eagle on the back nine at the 18th for his share of first. The tall Englishman shot a third-round 65 in search of his first career victory on the European Tour.
Hansen opened with a birdie at the first and parred his next six holes before an eagle at the par-5 eighth. The Dane picked up four birdies on the inward half for a 65 of his own.
Khan had a shaky start to his third round with two bogeys over his first four holes but he countered in remarkable fashion. After he got the blunders out of the way, Khan collected eight birdies the remainder of his round for a 66.
Luna, the elder Spaniard in the group tied for first, is seeking his first title since the 1995 Madeira Island Open. The 40-year-old amassed three birdies and a bogey on the front side before an eagle at the par-5 11th.
Luna birdied the 13th and converted a short putt at the closing par-5 for a round of 66.
Julien Clement of Switzerland carded a 66 to finish alongside England's Brian Davis in a tie for seventh at 18-under-par 198.
Miles Tunnicliff, who was tied for the 36-hole lead with Casey, managed only a round of 70 to finish two shots off the pace. Tunnicliff was joined by Peter Fowler, Peter Hedblom, Paul McGinley and Marten Olander at 17-under-par 199.
Jose Maria Olazabal, who has never won this tournament, finished alongside David Gilford, Charl Schwartzel, Fredrik Widmark, Miguel Angel Jimenez, Mikko Ilonen and Peter Lawrie at 16-under-par 200.
Defending champion Sergio Garcia remained quietly in contention after a bogey- free 66. The 23-year-old finished in a group at 14-under-par 202.