New Canary Islands Holiday Rental Rules – What Buyers Need to Know –

Buying a property in the Canary Islands to use as a holiday rental (vivienda vacacional or VV) is no longer just a lifestyle decision. It’s now clearly treated as a business activity, with rules, limits and expiry dates.

This short guide gives you the basics in plain English for property owners managing short-term rentals.

1. Holiday rentals now count as a business

If you rent your property to tourists on a short-term basis, such as through Airbnb, you are legally running a rental activity business, not just “helping friends” or “covering costs”. That means:

•  - You’ll need to follow the local regulations for short-term rentals to avoid penalties.

•  - You are exposed to inspections, fines and licence expiry.

•  - You must assume this income is not guaranteed forever.

  
  

2. Not every area will allow holiday rentals

Local councils (ayuntamientos) are now in charge of deciding where holiday rentals can exist.

•  - Each council must define zones where holiday rentals are allowed or restricted.

•  - Until these plans are approved, new licences for short-term rental properties may be suspended pending approval from the local town hall. 

•  - Two streets apart, the rules could be completely different.

If you’re buying, you must check:

•  - Is this area likely to be zoned for short-term holiday rentals, tourists, mixed, or residential-only?

•  - Has the council reached its percentage limit (10%) of holiday rentals?

  
  

3. Limits on how many homes can be holiday lets

To protect housing for residents, there are caps:

•  - In general, at least 80–90% of homes must remain for residential use.

•  - That means only up to 10% (sometimes 20%) of the housing stock can be used as tourist accommodation, depending on the island and area. 

Once that percentage is reached, no more licences will be issued unless the council justifies raising the limit.

4. Licence duration – not forever

•  - Standard licence validity: 5 years.

•  - In some areas (the so-called Green Islands or demographic-challenge zones): up to 10 years. 

Renewal will depend on:

•  - How your council has zoned the area.

•  - Whether the area is classified as having housing stress.

•  - Whether you continue to meet all technical requirements.

You should not base your financial planning on an assumption of “I’ll rent this holiday home forever.”

5. Key requirements for the property

Some of the minimum standards include:

•  - Minimum age of the building (normally 10 years; sometimes 5). 

•  - Minimum size – typically 35 m², with possible exceptions if you offer extras, such as parking or a pool.

•  - Energy rating – minimum F or D, depending on the case.

•  - Solar hot water systems can be a great addition to holiday homes, improving energy efficiency. 

•  - The property cannot be, or have been, protected public housing.

   - Your building’s community of owners can vote to block holiday rentals in the complex.

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6. This is a business – not a passive side-hobby

Before buying for holiday letting, ask yourself:

•  - Can I still afford this if rules change again or my licence isn't renewed?

•  - Am I ready for inspections, paperwork, community votes, and possible complaints?

•  - Do I have a plan B if tourist rentals are no longer allowed in this building or area?

  Treat this as a business with regulatory risk, not a guaranteed “easy money” scheme.

New Canary Islands Holiday Rental Rules – What Buyers Need to Know

Quick Q&A for Buyers in Tenerife, Canary Islands

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  Info. links: 
  https://www3.gobiernodecanarias.org/noticias/el-parlamento-de-canarias-aprueba-la-primera-ley-que-regulara-la-vivienda-vacacional-en-las-islas/
  https://www.idealista.com/news/inmobiliario/vivienda/2025/11/16/872235-canarias-aprueba-la-primera-ley-para-regular-las-viviendas-turisticas

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