After years of consideration and several false starts, the new holiday letting law, which is aimed at adding some regulation to the private letting sector, was finally approved by The Canarian Parliament in November.
The aim is to have better control of the numbers of homes on the short term letting market and to create sustainable management of tourist housing in the islands.
Key Points
Control
Control moves from The Cabildo into the hands of each municipality, who will be responsible for administering licences, numbers and any sanctions required. Most councils have already started contacting registered owners.
Moratorium
As of 12th November 2025, there is a 5 year moratorium on new licences being granted, but the exception is where a municipality has approved its new plan and designated areas where holiday rentals are allowed, new applications can be accepted again.
10% Limit
Each municipality must ensure that no more than 10% of the housing stock in it’s area is licensed for short term letting, leaving 90% for residential use. Municipalities have six months to implement an inspection and control plan to enforce this rule. Currently several areas of the island have substantially higher percentages of properties in this sector.
More Local Responsibility
Municipalities must create an inspection plan within six months to combat illegal rentals, reduce neighbourhood disturbances and protect compliant owners.
Property Age
New properties cannot be used for holiday rentals until they are at least ten years old.
Pseudohotels Banned
The law prohibits buildings in which all units are used as holiday rentals, often owned by a single investor. These so-called “pseudohotels” function as hotels without regulation and remove entire buildings from the residential market.
Location
Each municipal council will decide which areas of the municipality can be used for holiday letting.
Responsible Declarations Valid For 5 Years
The responsible declarations that owners make can be renewed every five years as long as they are meeting all their requirements.
New Licenses Require Authorisation From Ayuntamiento Before Starting Lets
When applying for a licence to let, homeowners must get approval from the ayuntamiento before starting to offer their property.
Sustainability & Quality
Properties intended for use as vacation rentals must meet basic requirements for safety, quality, sustainability, and accessibility . For example, they must have a minimum surface area of 35 square meters and be accessible to people with reduced mobility. However, the final list of requirements will be communicated via the municipalities.
Existing Licences Are Not Transferable
Owners with existing VV or touristic licenses can continue to operate, as long as they meet all the requirements of their town hall, but the licenses are not transferable to new owners.
