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

1. Greater Role for Local Councils

Local councils (Ayuntamientos) will now determine which areas are suitable for vacation rentals. This approach aims to prevent over-tourism in high-density zones and ensure adequate long-term housing availability for residents. Keep checking with your local council for updates on designated rental zones, as these have not yet been finalized.

2. Limits on Holiday Rental Build-Ability

New construction faces stricter regulations. A maximum of 10% of newly built properties may be allocated for vacation rental use. Additionally, stricter restrictions will apply to designated "Green Islands," though these islands have not yet been officially confirmed. Stay informed about announcements from your local Cabildo.

3. Prior Authorizations Required

All new vacation rental properties will require approval from the relevant Island Cabildo before operation. You must also comply with upcoming inspection plans. Begin gathering necessary documentation now to streamline this process when regulations fully take effect.

4. Protected Land Is Off-Limits

Properties located in national parks, nature reserves, or areas of high environmental value cannot be used for vacation rentals. However, existing rentals in these areas are grandfathered in and remain unaffected by this prohibition.

5. New Sustainability and Quality Standards

Higher quality standards are coming. Expected requirements include a minimum surface area of 35 square meters, accessibility for people with reduced mobility, and compliance with new sustainability standards. A final list of these standards is pending approval, so monitor official announcements from your local authorities.

6. Rules for Existing Vacation Rentals

If you currently operate a vacation rental, you may continue indefinitely. However, your license is tied to you, not the property—it cannot be transferred if you sell. For property managers, you may continue managing existing vacation rentals for 5 years, or up to 10 years if your operations comply with new regulations. This timeline is still under discussion and may change.

7. Requirements for New Vacation Rentals

New vacation rental properties must meet several anticipated requirements: the building must be at least 10 years old (still under discussion), obtain municipal authorization from your local council, comply with all safety, health, and environmental regulations, and cannot be located in protected or restricted areas. Plan ahead to ensure your property meets all these criteria before applying for authorization.

Stay updated with your local council and Island Cabildo for the latest regulatory updates, as some requirements are still being finalized.