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). 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 soon determine which areas are suitable for holiday rentals. This regulation aims to prevent over-tourism in high-density zones and ensure sufficient long-term housing for residents. Note that specific zones have not yet been defined, so stay tuned for updates from your local council.

2. Limits on Holiday Rental Build-ability

New construction faces stricter limitations. A maximum of 10% of new buildings may be allocated to holiday rental use. Additionally, stricter restrictions will apply to designated "Green Islands," though the specific islands 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 rental license.

4. Protected Land Off-Limits

Properties located in national parks, nature reserves, or areas of high environmental value are not eligible for holiday rental use. However, existing holiday 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 additional sustainability and quality standards. A final list of these standards is pending approval.

6. Rules for Existing Holiday Rentals

If you are already operating 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 properties for 5 to 10 years, depending on compliance with upcoming regulations.

7. Requirements for New Holiday Rentals

If you plan to open a new holiday rental, be prepared for the following anticipated requirements: the building must be at least 10 years old, you need municipal authorisation 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.

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