The Canary Islands Parliament approved on Wednesday this week, after an 18-month process, a law on the sustainable management of tourist housing in the Canary Islands. The document included votes in favor of the Union of Canaries, the People’s Party, the La Gomera Socialist Group, and the Independent Eleña Group (parties supporting the government coalition), and against the PSOE, Nueva Canarias, and Vox. As defended by the government group, this is a “law that commands and regulates” private lodging, a spokesperson for the government’s parliamentary group argued. “This law is not prohibitive, declared City Councilor Jessica de Leon (Popular Party). Opposition parties and the industry’s main business associations have criticized the law for favoring large shareholders.
According to data from the Canary Islands Statistical Institute (ISTAC), there were 49,840 holiday homes available on the Canary Islands in April, representing a 6.4% increase compared to the previous year. Most of this housing type is located in Tenerife, accounting for 41%. 22% are located in Gran Canaria, followed by Lanzarote (16%) and Fuerteventura (13%).
The most notable point of this passage is that not just any house can be converted into a tourist apartment. The law states that only properties of at least 35 square meters that can be accessed independently without the use of portals, stairs or common areas can be used for tourist purposes. The role of ownership communities has also been strengthened, with legislation potentially prohibiting or restricting vacation rentals, in line with Supreme Court doctrine that recognizes the ability to restrict the economic use of residential properties.
Residential uses by tourists are prohibited in protected rustic lands, natural spaces and areas integrated into the Natura 2000 network, unless expressly permitted in the environmental management plan or protected space planning documents. Areas where tourist and urban pressures exceed the sustainability limits defined in carrying capacity studies are also excluded.
The law also introduces a minimum age requirement before a house can be used for tourist purposes, to ensure that the house has served its purpose for a certain period of time. City councils may adjust this requirement depending on the realities of each municipality, but always with the aim of preventing new developments from being built for tourism purposes. Urban planning should also include a carrying capacity study that analyzes housing availability, services, mobility, and environmental impacts before allowing new development.
In urban areas, this standard requires that a minimum of 90% of residential land be reserved for residential use, with only 10% available for tourism purposes. so-called green islands In La Palma, La Gomera and El Hierro, the difference increases to 20%, given lower demographic and tourist pressure. The City Council may adjust these proportions, but always with technical justification and respecting the principles of sustainability and social balance.
In a squeezed housing market, another important limitation emerges. If a municipality or region is so declared, the approval of new tourism facilities will be automatically suspended as long as the situation remains tense. The measure is aimed at preventing the conversion of residential buildings into holiday homes from worsening supply shortages for residents and causing rental prices to soar. The law also explicitly prohibits the use of publicly protected housing (VPO), i.e. housing subject to public promotion or limit price schemes, for tourism purposes.
The document approved this Wednesday no longer requires prior municipal permission, as with other sensitive activities. Instead, a responsible declaration system is maintained that simplifies procedures and is subsequently administered through the Island Council, which is responsible for managing registration and inspections. This declaration must ensure that housing complies with urban planning, safety and accessibility requirements. Misrepresentation or non-compliance will be considered a material violation and may result in sanctions and/or loss of eligible titles.
Tourism Minister Jessica de Leon acknowledged that the rules were “internalized, difficult to explain and difficult to manage” during the process, and praised ASG and AHI for “serving the public interest and not being held hostage by political tactics in this Parliament.”
Meanwhile, PSOE councilor Gustavo Santana declared this morning that the approved text “does not take into account the residents or the general interest,” adding that the number of holiday homes will increase by more than 32,000 since September 2023. He pointed out that the law was “advantageous to large holders” and lamented the lack of decorum in Parliament, as few amendments from opposition parties were approved. Giving “profits” to tourism businessmen and “displacing” residents.
The industry has both vehemently rejected and welcomed the law. The Canary Islands Vacation Rental Association (ASCAV) declared on Monday that this would mean “the virtual eradication of holiday homes in the hands of the archipelago’s thousands of private owners”, with only large owners and investment funds benefiting.
“We finally have clear rules,” said Jorge Marichal, president of Santa Cruz de Tenerife’s Hotel and Non-Hotel Association (Achotel), outlining the steps investors should follow. He, who is also president of the Spanish Confederation of Hotels and Tourist Accommodations (Cehat), believes that this activity is “interfering” with housing and emphasizes the need to organize the sector. “We’ve been saying for 10 years that this is not a competitive issue because hotels remain open, but on the other hand, this is also a social issue.”
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