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 (Viviendas Vacacionales) designed to balance tourism growth with local housing needs. Here's what you need to know to stay compliant with these changes.

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 high-density zones and ensure adequate long-term housing for residents. Keep an eye on announcements from your local council, as these zones have not yet been officially defined.

2. Limits on Holiday Rental Build-Ability

New construction projects face stricter limits on holiday rental allocation. A maximum of 10% of new buildings may be designated for holiday rental use. Additionally, stricter restrictions will apply to "Green Islands," though which islands fall under this category remains to be confirmed.

3. Prior Authorizations Required

All new holiday rental properties must obtain approval from the relevant Island Cabildo before operation. You'll also need to comply with upcoming inspection plans. This is a key requirement for anyone looking to launch a new holiday rental business in the region.

4. Protected Land Off-Limits

Properties located in national parks, nature reserves, or areas of high environmental value are not eligible for holiday rental use under the new regulations. If you currently operate a holiday rental in these protected areas, you may continue indefinitely—the prohibition applies only to new rentals.

5. New Sustainability and Quality Standards

Higher quality and environmental standards are now expected for holiday rentals. Properties must meet a minimum surface area of 35 m² and include accessibility features for people with reduced mobility. A complete list of sustainability and quality standards is pending final approval.

6. Rules for Existing Holiday Rentals

If you already operate a holiday rental, you can continue indefinitely. However, your license cannot be transferred if the property is sold—it belongs to you personally, not the property itself. Property managers may continue operating existing rentals for 5 to 10 years, depending on regulatory compliance (this point remains under discussion).

7. Requirements for New Holiday Rentals

To open a new holiday rental, anticipate these requirements: the building must be at least 10 years old (under discussion), you'll need municipal authorization from your local Ayuntamiento, full compliance with all safety and health regulations is mandatory, and the property cannot be located in protected or restricted areas.

Stay informed by monitoring updates from your local council and the Island Cabildo to ensure your rental operation remains fully compliant with these evolving regulations.