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 official term for vacation rental properties. These changes aim to balance tourism growth with local housing availability. Here's what you need to know to stay compliant with the 7 key requirements.

1. Local Councils Will Control Rental Zones

Local councils (Ayuntamientos) now have authority to designate which areas permit vacation rentals. Their goal is to prevent over-tourism in high-density zones and preserve long-term housing for residents. These zones have not yet been defined, so monitor updates from your local council regularly to understand which areas will be affected.

2. Strict Limits on New Holiday Rental Construction

New construction faces stricter regulations. A maximum of 10% of new buildings can be allocated to vacation rental use. Clarification is still pending on whether this requires a specific permit or relates to the 10-year minimum property age rule. Additionally, stricter restrictions will apply to designated "Green Islands," though which islands qualify remains unclear.

3. Prior Authorisation Required from Island Authorities

All new vacation rental properties must obtain approval from the relevant Island Cabildo before operation. You'll also need to comply with upcoming inspection plans. This authorisation is a mandatory step before you can legally begin renting your property.

4. Protected Areas Are Off-Limits

Vacation rentals cannot operate in national parks, nature reserves, or areas designated as having high environmental value. If your property already operates in these protected areas, you may continue indefinitely under existing rules – only new rentals in these zones are prohibited.

5. New Sustainability and Quality Standards Apply

Properties must meet enhanced environmental and quality requirements, including a minimum surface area of 35 m². Accessibility standards for people with reduced mobility are being defined and may require significant modifications. A final list of all sustainability and quality standards is pending official approval.

6. Rules for Existing Vacation Rentals

If you currently operate a vacation rental, you may continue indefinitely. However, your license belongs to you – not the property. If you sell, the new owner cannot transfer your license. For property managers, you can continue managing existing rentals for 5 years, or up to 10 years if operations comply with new regulations (this point remains under discussion and may change).

7. New Rental Requirements to Know

To open a new vacation rental, expect to meet these requirements: the building must be at least 10 years old (under discussion), 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 local council announcements to ensure your vacation rental business remains compliant with Canary Islands regulations.