At the beginning of 2026, the law was still being processed in the Parliament of the Canary Islands, after several postponements in the debate on amendments, so its entry into force was expected at least for the second half of 2026
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This new holiday rental law in the Canary Islands aims to maintain a balance between tourist and residential use of housing. The Law on Sustainable Planning of Tourist Use of Housing is expected to come into effect between April and May 2025 , in a context where the growth of holiday rentals in the area is beginning to cause some socioeconomic tension .
The new holiday rental law in the Canary Islands is still being debated among the different parliamentary groups, who are required to finalize details and tie up loose ends, generating uncertainty in the Canary Islands tourism sector. The ongoing delays make it unlikely that it will come into effect before the end of 2025. After the amendment period closes (June 30), the text will go to committee, then be debated, and finally voted on in plenary session.
During the final days of 2025, the text received over 250 amendments and moved to the committee stage in the Tourism and Housing Committee. Parliamentary groups continue to negotiate modifications regarding the role of the island councils and the limit on the number of housing units per municipality. Despite the urgency expressed by the Canary Islands Government, a definitive date for its approval has not yet been set.
Local councils will be responsible for deciding which areas are suitable for developing new tourist accommodations and which are not. They are expected to manage supply and demand, as well as handle high-demand tourist areas, ensuring a sufficient supply of residential housing.
One of the new features of this law is that a property can be designated as a consolidated tourist accommodation . This means that the property will be used exclusively for tourism and will never be used as a primary residence. The declaration of a property as a tourist accommodation will be valid for five years and can be renewed through a new declaration of responsibility . To declare a property as a tourist accommodation, owners must provide a series of documents demonstrating that the property was legally authorized for holiday rentals.
This new law provides stability for owners who wish to secure their property for hosting tourists in the medium to long term , thus allowing them to plan their tax and administrative management more easily.
Depending on the municipality and the criteria used by each local council, a building limit will be imposed on properties intended for holiday rentals. In some cases, only 10% of new buildings may be designated as holiday homes. This percentage could be reduced on certain islands due to the potential impact on natural resources, as is the case on El Hierro, La Gomera, and La Palma.
To rent out a property for vacation rentals in the Canary Islands, it must be at least 10 years old . But what happens after those 10 years? The goal is to adapt the property to the requirements of the legislation in force at that time.
If the bylaws of the homeowners' association prohibit holiday rentals in any property within the community, a tourist rental cannot be established , even if all requirements are met. Owners must review and adapt community agreements and bylaws if they intend to use a property for tourist purposes in a community where holiday rentals are prohibited.
As expected, urbanization for tourism purposes is completely prohibited on protected land due to the large amount of natural and scenic resources it contains.
The different island councils will have to draw up prior inspection plans for at least 5 years in order to enforce the new holiday home law.
Each property intended for tourist rental in the Canary Islands must be registered in the single tourist rental registry and display a unique number in advertisements.
This requirement is in addition to the obligations established by Royal Decree 933/2021, which regulates the communication of traveler data to the authorities, a process that can be automated through solutions such as Check-in Scan.
Owners and organizations affected by the new Canary Islands holiday rental law reacted immediately upon learning of the initial regulations.
They believe the law could seriously harm the local economy , negatively impacting small businesses and leading to a decrease in overnight stays on the islands.
Furthermore, owners fear that many permits could be easily revoked or modified. This will create uncertainty and discourage potential investors.
ASCAV (the Canary Islands Holiday Rental Association) warns that "the new law could devastate the Canary Islands economy" and has already filed appeals with the High Court of Justice of the Canary Islands (TSJC). It is estimated that around 25,000 properties, located in non-hotel complexes, could be left in a legal limbo or forced to change their use.
During 2025, the Canary Islands welcomed over 14 million tourists, but bookings for holiday rentals showed a slight slowdown (-7.3%) due to legal uncertainty. Platforms like Airbnb and Booking implemented new filters to verify regional registration, which reduced the visible supply in high-demand areas such as Tenerife South and Las Palmas de Gran Canaria.
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The new holiday rental law in the Canary Islands aims to balance tourist and residential use, but the lack of clear definitions is creating uncertainty in the sector , hindering planning for owners and investors. Furthermore, granting municipalities the power to decide where holiday rentals are permitted could lead to inequalities between towns, affecting supply and driving up housing prices in certain areas.
The restrictions imposed by the regulations could also negatively impact the local economy , as reduced investment in holiday homes could harm small businesses that depend on tourism and decrease the number of overnight stays on the islands. Although the "established tourist use" offers some stability to owners, the requirement for renewal every five years maintains uncertainty and could discourage new investment.
Another factor limiting the expansion of vacation rentals is the increased decision-making power granted to homeowners' associations , who can prohibit this activity within their properties, further reducing the supply and potentially generating conflicts between neighbors with opposing interests. Likewise, the requirement that properties be at least ten years old before they can be rented out hinders the modernization of the housing stock and discourages the construction of more sustainable accommodations adapted to the new demands of the market.
Although final approval of the Law could be delayed until the end of 2026, holiday home owners are advised to begin reviewing the legality of their activity, updating their records, and preparing documentation that proves prior tourist use. Tools like Check-in Scan facilitate ongoing compliance with future administrative requirements and reduce the risk of penalties when the regulations come into effect.
