How to Get Ready for Upcoming Changes to Vacation Rental Laws in the Canary Islands

The Canary Islands has introduced a new regulatory framework for holiday rentals designed to balance tourism growth with local housing needs. Understanding these changes is essential for hosts to stay compliant. Here are the 7 key points you need to know.

1. Greater Role for Local Councils

Local councils (Ayuntamientos) will now determine which areas are suitable for holiday rentals. This aims to prevent over-tourism in densely populated zones and ensure adequate long-term housing for residents. Note that these zones have not yet been defined, so stay tuned for updates from your local council.

2. Limits on Holiday Rental Build-ability

New construction will face stricter limits with a maximum of 10% of new buildings allocated to holiday rental use. Additionally, stricter restrictions will apply to designated "Green Islands," though these have not yet been confirmed. Clarity on permit requirements and the 10-year minimum property age rule is still pending.

3. Prior Authorizations Required

All new holiday rental properties will require approval from the relevant Island Cabildo before operating. Properties must also comply with upcoming inspection plans to maintain their licenses and operate legally.

4. Protected Land Off-Limits

Properties in the following areas will not be eligible for holiday rental use: national parks, nature reserves, and areas of high environmental value. Note that existing holiday rentals in these areas will not be affected by this new prohibition.

5. New Sustainability and Quality Standards

New requirements will include a minimum surface area of 35 m² and accessibility provisions for people with reduced mobility. A comprehensive list of sustainability and quality standards is still pending approval but will likely cover environmental responsibility and guest comfort measures.

6. Rules for Existing Holiday Rentals

If you currently operate a holiday rental, you can continue indefinitely. However, your license cannot be transferred if the property is sold—it belongs to you, not the property. For property managers, existing operations can continue for 5 years, or up to 10 years if complying with new regulations. This point is still under discussion and may change.

7. Requirements for New Holiday Rentals

New holiday rentals will need municipal authorization from the local council, must be in buildings at least 10 years old (under discussion), and must comply with all new safety, health, and environmental regulations. Properties cannot be located in protected or restricted areas.

Stay informed about regulatory updates from your local Island Cabildo to ensure your property remains compliant with the new legal framework.