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 growth with local housing needs. Here's what you need to know to stay compliant with the new regulations.

1. Greater Role for Local Councils

Local councils (Ayuntamientos) will soon determine which areas are suitable for vacation rentals. This approach aims to prevent over-tourism in high-density zones and ensure sufficient long-term housing for residents. Stay tuned for updates from your local council, as these zones have not yet been fully defined.

2. Limits on Vacation Rental Construction

New building projects will face stricter limitations. A maximum of 10% of new buildings may be allocated to vacation rental use. Additionally, stricter restrictions will apply to designated "Green Islands," though the specific islands have not yet been confirmed. Clarity on permit requirements and the 10-year minimum property age rule is still pending.

3. Prior Authorizations Required

All new vacation rental properties will require approval from the relevant Island Cabildo before operation. You'll also need to comply with upcoming inspection plans. This authorization step is essential for legal operation under the new framework.

4. Protected Land Restrictions

Properties located in the following areas will not be eligible for vacation rental use: national parks, nature reserves, and areas of high environmental value. However, existing vacation rentals currently operating in these protected areas will not be affected by this new prohibition.

5. New Sustainability and Quality Standards

The regulations introduce higher quality and environmental standards for vacation rentals. Properties must meet a minimum surface area of 35 square meters and provide accessibility for people with reduced mobility (standards still being defined). A comprehensive list of sustainability and quality standards is pending final approval.

6. Rules for Existing Vacation Rentals

If you already operate a vacation rental, you may continue indefinitely. However, your license cannot be transferred if you sell the property - it remains tied to you as the owner, not the property itself. Property managers may continue managing existing vacation rentals for 5 years, or up to 10 years if operations comply with upcoming regulations. This point remains under discussion and may change.

7. Requirements for New Vacation Rentals

To launch a new vacation rental, anticipate the following requirements: the building must be at least 10 years old (currently under discussion), you need municipal authorization from your local council, full compliance with all new safety, health, and environmental regulations is mandatory, and the property cannot be located in protected or restricted areas.

Staying informed about these regulatory changes will help you maintain compliance and adapt your vacation rental business accordingly. Monitor updates from your local Cabildo and Ayuntamiento for the most current information.