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 (vacation rental properties) designed to balance tourism growth with local housing needs. Understanding these changes is essential for hosts to remain compliant. Here are the 7 key points you need to know.

1. Greater Role for Local Councils

Local councils (Ayuntamientos) will soon determine which areas are suitable for holiday rentals. This aims to prevent over-tourism in high-density zones and ensure enough long-term housing remains available for residents. Stay tuned for updates from your local council about designated zones.

2. Limits on Holiday Rental Build-ability

New construction will face stricter regulations. A maximum of 10% of new buildings may be allocated to holiday rental use. Additionally, stricter restrictions will apply to "Green Islands," though the specific islands affected have not yet been confirmed.

3. Prior Authorisations Required

All new holiday rental properties will need approval from the relevant Island Cabildo before operating. You must also comply with upcoming inspection plans to maintain your authorization.

4. Protected Land Off-Limits

Properties located in national parks, nature reserves, or areas of high environmental value will not be eligible for holiday rental use. However, existing holiday rentals in these areas will not be affected by this prohibition.

5. New Sustainability and Quality Standards

To raise overall quality and environmental responsibility, new requirements are expected, including a minimum surface area of 35 m², accessibility for people with reduced mobility, and comprehensive sustainability standards. A final list of these standards is pending approval.

6. Rules for Existing Holiday Rentals

If you already operate a holiday 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 5 to 10 years, depending on compliance with upcoming regulations. This point is still under discussion and may change.

7. Requirements for New Holiday Rentals

If you plan to open a new holiday rental, anticipate the following requirements: a minimum building age of 10 years (under discussion), municipal authorization from your local council, full compliance with safety, health, and environmental regulations, and no location in protected or restricted areas.

Stay informed by regularly checking for updates from your local council and the Island Cabildo to ensure your property remains compliant with these evolving regulations.