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 vacation rentals (Viviendas Vacacionales) designed to balance tourism growth with local housing needs. If you operate or plan to start a vacation rental in the Canary Islands, understanding these changes is essential for staying compliant. Here are the 7 key points you need to know.

1. Local Councils Now Control Holiday Rental Zones

Local councils (Ayuntamientos) have gained the authority to designate which areas are suitable for holiday rentals. This decision aims to prevent over-tourism in densely populated areas and ensure sufficient long-term housing remains available for residents. Stay informed about updates from your local council regarding designated rental zones in your area.

2. Strict Limits on New Holiday Rental Construction

New buildings will face stricter limitations on holiday rental use. A maximum of 10% of new construction can be allocated to vacation rentals. Additionally, stricter restrictions will apply to "Green Islands," though the specific islands designated under this category have not yet been confirmed.

3. Prior Authorization Required Before Operating

All new holiday rental properties must obtain approval from the relevant Island Cabildo before operation begins. You will also need to comply with upcoming inspection plans. This authorization process is mandatory and should be completed before listing your property.

4. Protected Environmental Areas Are Off-Limits

Properties located in national parks, nature reserves, or areas of high environmental value cannot be used as holiday rentals. However, existing vacation rentals already operating in these protected areas will not be affected by this new prohibition.

5. New Sustainability and Quality Standards Apply

The Canary Islands is implementing higher standards for vacation rental properties, including a minimum surface area of 35 m², improved accessibility for people with reduced mobility, and comprehensive sustainability requirements. A complete list of these standards is pending final approval.

6. Existing Holiday Rentals Can Continue Operating

If you currently operate a vacation rental, you may continue doing so indefinitely. However, your license is tied to you as the operator, not to the property itself. If you sell the property, the license cannot be transferred to the new owner. For property managers, you may continue managing existing vacation rentals for 5 to 10 years, depending on regulatory compliance (this provision remains under discussion).

7. Requirements for Opening New Holiday Rentals

If you plan to launch a new vacation rental, be prepared to meet these anticipated requirements: the building must be at least 10 years old (under discussion), you must obtain municipal authorization from your local council, you must comply with all new safety, health, and environmental regulations, and the property cannot be located in protected or restricted areas.

Staying informed about these regulatory changes will help you maintain compliance and operate your vacation rental successfully in the Canary Islands. Monitor updates from your local council and the Island Cabildo for any additional guidance.