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

The Canary Islands is implementing 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 seven key points you need to know to stay compliant.

1. Greater Role for Local Councils (Ayuntamientos)

Local councils will soon determine which areas are suitable for vacation rentals. Their goals include preventing over-tourism in high-density zones and ensuring enough long-term housing remains available for residents. Stay tuned for updates from your local council, as these zones have not yet been defined.

2. Limits on Holiday Rental Build-ability

New construction will face stricter limits. A maximum of 10% of new buildings may be allocated to vacation rental use. Additionally, stricter restrictions will apply to "Green Islands," though which islands fall under this category has not yet been confirmed.

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 to maintain your license.

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. Note that existing vacation rentals in these areas will not be affected by the new prohibition.

5. New Sustainability and Quality Standards

New requirements are expected to raise the overall quality and environmental responsibility of vacation rentals. These include a minimum surface area of 35 m², accessibility for people with reduced mobility, and additional sustainability and quality standards pending approval.

6. Rules for Existing Vacation Rentals

If you are already operating 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 vacation rentals for up to 5-10 years if operations comply with upcoming regulations.

7. Requirements for New Vacation Rentals

If you are opening a new vacation rental, be aware of these anticipated requirements: a minimum building age of 10 years (under discussion), municipal authorisation from the local council, full compliance with all new safety, health, and environmental regulations, and no location in protected or restricted areas.

Stay informed about these regulatory changes to ensure your vacation rental business remains compliant with the Canary Islands' new framework.