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 local legal term for vacation rental properties. These changes aim to balance tourism growth with the housing needs of local residents. Here are the seven key points you need to know to stay compliant.

1. Greater Role for Local Councils (Ayuntamientos)

Local councils now have the power to determine which areas are suitable for vacation rentals. This decision-making focuses on:

• Preventing over-tourism in high-density zones
• Ensuring adequate long-term housing availability for residents

Note: Specific zones have not yet been defined. Stay updated with announcements from your local council.

2. Limits on Vacation Rental Development

New construction projects face stricter restrictions:

• A maximum of 10% of new buildings may be allocated to vacation rental use
• Stricter restrictions apply to "Green Islands" (specific islands still to be confirmed)

Clarification on whether a specific permit is required is still pending.

3. Prior Authorizations Required

All new vacation rental properties must obtain approval before operation:

• Approval from the relevant Island Cabildo is mandatory
• Properties must comply with upcoming inspection plans

4. Protected Land Is Off-Limits

Properties located in the following areas cannot be used for vacation rentals:

• National parks
• Nature reserves
• Areas of high environmental value

Important: Existing vacation rentals already operating in these areas are not affected by the new prohibition.

5. New Sustainability and Quality Standards

All vacation rentals must meet enhanced environmental and quality requirements:

• Minimum surface area of 35 m²
• Accessibility for people with reduced mobility (specifications still being finalized)
• Compliance with sustainability and quality standards (final list pending approval)

6. Rules for Existing Vacation Rentals

If you currently operate a vacation rental:

• You may continue operating indefinitely
• Your license is tied to you as the host, not the property itself – it cannot be transferred if you sell

If you are a property manager:

• You may continue managing existing vacation rentals for 5 years, or up to 10 years if your operations comply with upcoming regulations (this point is still under discussion)

7. Requirements for New Vacation Rentals

If you plan to open a new vacation rental, be prepared to meet these anticipated requirements:

• Minimum building age of 10 years (under discussion)
• Municipal authorization from your local council (Ayuntamiento)
• Full compliance with all safety, health, and environmental regulations
• No location in protected or restricted areas

Stay Informed: These regulations are still evolving. Regularly check updates from your local Island Cabildo and local council to ensure you remain compliant with all new requirements.