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 have the power to determine which areas are suitable for holiday rentals. This decision aims to prevent over-tourism in high-density zones and ensure enough long-term housing is available for residents. These zones have not yet been defined, so stay tuned for updates from your local council.

2. Limits on Holiday Rental Build-ability

New construction will face stricter limits. A maximum of 10% of new buildings may be allocated to holiday rental use. Additionally, stricter restrictions will apply to "Green Islands," though it is not yet confirmed which islands will fall under this category.

3. Prior Authorisations Required

Before operating, all new holiday rental properties will need approval from the relevant Island Cabildo and must comply with upcoming inspection plans. This is a mandatory step for new properties entering the market.

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 the new prohibition.

5. New Sustainability and Quality Standards

To raise the overall quality and environmental responsibility of holiday rentals, new requirements are expected, including:

• Minimum surface area of 35 m²
• Accessibility for people with reduced mobility
• Additional sustainability and quality standards pending approval

6. Rules for Existing Holiday Rentals

If you are already operating a holiday rental, you may continue doing so 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 vacation rentals for 5 years, or up to 10 years if your operations comply with the upcoming regulations.

7. Requirements for New Holiday Rentals

If you are looking to open a new holiday rental, be aware of the following anticipated requirements:

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

Stay informed about these changes by regularly checking updates from your local Cabildo and council. Preparing now will help ensure your property remains compliant with the new regulations.