The draft bill of the Canary Islands Law on the Sustainable Management of Tourist Use of Housing has introduced key changes that allow small owners currently operating holiday homes in the Canary Islands to continue doing so indefinitely, provided they comply with the law. In contrast, those who manage holiday rentals without owning the property can only operate for five years, which may be extended for another five years, or up to 20 years if they also offer an equivalent number of properties for long-term rental.
This update comes after the period of allegations and has been communicated by the Canary Islands Ministry of Tourism and Employment. The law also includes a relaxation of some technical requirements initially outlined, such as the need for an electric vehicle charger, paved road access, and strict energy efficiency criteria, which had faced criticism from the holiday rental sector.
Changes in Requirements for Holiday Homes
The draft law now lowers the minimum usable surface area for tourist use from 39 to 25 square metres, provided certain conditions are met, such as having a linked car park, a private or communal swimming pool, or generating employment.
Miguel Ángel Rodríguez, Director General for Organisation, Training, and Tourism Promotion, explained that the new regulations would incorporate transitional provisions to differentiate between current holiday home operators based on whether they own the property.
For owners who currently operate their properties as holiday rentals, the new law allows them to continue indefinitely if they comply with existing regulations. However, this right is non-transferable and would cease if the property is sold or if the activity is abandoned.
For non-owner operators, the law provides a five-year period for continued operation, extendable by another five years if they comply with the new regulations. This period could extend up to 20 years if they convert the same number of holiday homes into long-term rentals.
Local Councils’ New Role
Under the new law, local councils will be given greater freedom to regulate holiday rentals within their jurisdictions. They will set the specific requirements and guidelines for new tourist rental operations established after the law’s approval.
Rodríguez highlighted that this regulatory change will enhance the capacity of local governments in managing and inspecting holiday rentals without altering their existing competencies and obligations. Local councils will have six months to draft their inspection plans for holiday homes, which must be implemented within four years. Following this, they will provide reports on the situation in their territories.
No “Pseudo-Hotels” Allowed
The draft bill maintains certain provisions, such as requiring newly built homes to be used for residential purposes for at least ten years and prohibiting so-called “pseudo-hotels” from being included in municipal planning. Properties currently operating under such conditions will have different options depending on ownership, including transitioning to urban hotels or converting to long-term rentals.
Next Steps for the Law
Tourism Councillor Jéssica de León emphasized that this law is a “continuation” of existing regulations and called for ongoing collaboration with local governments. She announced plans to request an urgent processing of the law once it enters the Canary Islands Parliament, which is expected to occur in the coming weeks following the necessary reviews by relevant bodies such as the Economic and Social Council and the municipal and island Coordination Committees.
