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 Viviendas Vacacionales (VV) – the local legal term for vacation rental properties. These changes aim to balance tourism with the housing needs of local residents. Here are the 7 key points you need to know to stay compliant.

1. Greater Role for Local Councils

Local councils (Ayuntamientos) will determine which areas are suitable for vacation rentals. This helps prevent over-tourism in high-density zones and ensures enough long-term housing is available for residents. These specific zones have not yet been defined, so monitor updates from your local council.

2. Limits on Holiday Rental Build-ability

New construction faces stricter limits, with a maximum of 10% of new buildings allocated to vacation rental use. Stricter restrictions will also apply to designated "Green Islands," though confirmation of which islands fall under this category is still pending.

3. Prior Authorisations Required

All new vacation rental properties will need approval from the relevant Island Cabildo before operating. You must also comply with upcoming inspection plans as part of the authorization process.

4. Protected Land Off-Limits

Properties located in national parks, nature reserves, or areas of high environmental value will not be eligible for vacation rental use. Existing rentals in these areas will not be affected by the new prohibition.

5. New Sustainability and Quality Standards

New requirements include a minimum surface area of 35 m², accessibility for people with reduced mobility, and sustainability standards. A final list of all quality standards is pending approval.

6. Rules for Existing Vacation Rentals

If you currently operate a vacation rental, you may continue indefinitely. However, your license cannot be transferred if the property is sold – it belongs to you, not the property. Property managers may continue managing existing rentals for 5 to 10 years if operations comply with upcoming regulations.

7. Requirements for New Vacation Rentals

New vacation rentals must meet several anticipated requirements: the building must be at least 10 years old (under discussion), obtain municipal authorization from the local council, comply with all safety and environmental regulations, and not be located in protected or restricted areas.

Stay informed by regularly checking updates from your local Ayuntamiento and the relevant Island Cabildo to ensure your vacation rental business remains compliant with these new regulations.