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) – vacation rental properties. These changes aim to balance tourism growth with the housing needs of local residents. Here are the seven key points you need to know to stay compliant.

1. Greater Role for Local Councils

Local councils (Ayuntamientos) will now determine which areas are suitable for holiday rentals. This is designed to prevent over-tourism in high-density zones and ensure adequate long-term housing for residents. Keep an eye on updates from your local council, as specific zones have not yet been defined.

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 require approval from the relevant Island Cabildo before operation. You must also comply with upcoming inspection plans. This authorization process is essential before you can legally operate your rental.

4. Protected Land Off-Limits

Properties located in the following areas will not be eligible for holiday rental use:

• National parks
• Nature reserves
• Areas of high environmental value

Note: Existing holiday rentals in these areas will not be affected by this new prohibition.

5. New Sustainability and Quality Standards

To enhance overall quality and environmental responsibility, new requirements include a minimum surface area of 35 m² and accessibility for people with reduced mobility. A final list of sustainability and quality standards is pending approval, so stay tuned for further announcements.

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. For property managers, you may continue managing existing rentals for 5 years, or up to 10 years if your operations comply with new regulations. This point remains under discussion and may change.

7. Requirements for New Holiday Rentals

If you plan to open a new holiday rental, anticipate the following requirements:

• Minimum age of 10 years for the building (under discussion)
• Municipal authorization from your local council
• Full compliance with all new safety, health, and environmental regulations
• No location in protected or restricted areas

Stay informed about these regulatory changes and monitor updates from your local Cabildo to ensure your property remains compliant. The Canary Islands tourism board and local authorities will continue to provide guidance as these regulations are finalized.