Renting out vacation homes has become a business where profitability is often higher than any other investment. Currently, with the presence of vacation rental platforms aimed at a mass audience, such as Airbnb and Booking , it's relatively easy to find guests for tourist accommodations.
To start generating income from renting out a vacation home in the Canary Islands, a series of requirements must be met .
In 2025, regulations regarding vacation rentals in the Canary Islands underwent significant changes that directly affect the authorization, control, and operation of this type of accommodation. Owners must be aware of these modifications to ensure compliance with the law.
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For the purposes of Decree 113/2015 published in the Official Gazette of the Canary Islands, holiday accommodation is defined as “dwellings, furnished and equipped for immediate use and meeting the requirements set forth in this Regulation, that are marketed or promoted through tourist channels to be temporarily and entirely rented to third parties, on a regular basis, for holiday accommodation purposes in exchange for payment.”
It should be noted that several provisions of this decree have been overturned by the Supreme Court and are not applicable . These are the provisions related to the prohibition of renting by rooms and renting on land classified as tourist or mixed-use . It is worth highlighting that a new regional law is being processed that will bring greater controls, including limitations on permitted areas for tourist accommodation, stricter controls, and a 10% limit on new buildings intended for holiday rentals, especially on islands with sensitive ecosystems.
In addition to the requirements established by the definition itself, there are other requirements to operate legally in the holiday rental business. These are as follows:
A certificate of occupancy is an official document that certifies that a dwelling meets the minimum habitability requirements established by current legislation. These requirements refer to aspects such as hygiene, sanitation, and structural integrity, as well as the minimum services the dwelling must have, such as ventilation, lighting, and access to basic utilities like drinking water, electricity, and sewage.
To obtain the certificate, you must request the assistance of an authorized technician to issue the habitability certificate, and with this certificate, you must go to the town hall of the locality to request the licenses.
All holiday homes must generally have locks on both the inside and outside of the entrance doors, as well as a first-aid kit .
In bedrooms, single beds must be 90cm wide , and double beds must be 135cm wide . In addition, they must have blackout , individual lighting, hangers, and bedding (sheets, pillows, duvets, bedspreads, etc.) .
The kitchen must have dishes, a coffee maker, all necessary utensils, an oven or microwave, and an ironing board .
The bathroom must have mirrors, towels (one bath towel and one hand towel per guest), a shower screen to prevent water from escaping, a hairdryer, towel rails (heated or not), a toilet paper holder, and a hair dryer .
In addition to traditional elements, holiday homes must have safety and sustainability systems in accordance with new regulations, such as accessibility for people with reduced mobility.
First, you'll need to gather all the necessary documentation to register the property as a holiday rental, although this documentation will depend on the island council where the property is located. Some required documents are common to all councils.
From 2025, it's mandatory to register the property in the new National Tourist Rental Registry, in addition to the regional registry, and to have the corresponding municipal authorization certifying its legality to operate.
You must prove that you own the property or have the right to operate it. In the first case, you only need to provide the property purchase agreement or title deeds; in the second case, you need a power of attorney from the owner
You must submit form 400 to the IGIC (Canary Islands General Indirect Tax), in which you must register your tourist accommodation under heading 1685 “Extra-hotel tourist accommodations”.
It is mandatory to display the energy performance certificate in advertisements and include it in rental agreements. This document, issued by a qualified technician, details the energy efficiency rating of the property.
The Canary Islands Public Administration requires you to submit the property plans, showing their location in relation to public land.
civil liability insurance policy
is another document required to register a property in the Canary Islands. This policy is an insurance contract whereby an insurance company agrees to cover financial damages that the insured may cause to third parties, whether unintentionally or through negligence, resulting in legal liability. It is not the same as home insurance.
The final and most important document in the process is the declaration of responsibility, a document in which you declare and inform the public administration of your intention to rent the property for tourist use. This is necessary to register the property in the Register of Tourism Businesses and Activities of the Canary Islands Autonomous Community.
The new legislation aims to balance tourism growth with environmental protection and the quality of local life. Adhering to these requirements is essential for the legal and sustainable operation of holiday rentals in the Canary Islands.
Once the property is registered in the Register of Tourist Businesses and Activities of the Autonomous Community of the Canary Islands, before you start making money from it through rentals you must indicate the following:
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Holiday rental agreement template , which must be available in at least Spanish and English. More information about holiday rental agreements.
