Introduction Ascav Canary Islands Holiday Rental Law
Discover how the ASCAV Canary Islands holiday rental law is changing the game for holiday property owners and rental agents alike. If you’re a landlord or investor in the Canary Islands, understanding these legal shifts is essential to stay compliant and competitive.
When Is the New Holiday Rental Law Expected to Come into Force?
A new autonomous Canary Islands law addressing “Touristic Housing” entered the regional parliament on January 16, 2025, aiming to bring balance between tourism and residential needs. However, its full implementation is still pending and unlikely to take effect before the end of 2025, as amendments continue in the legislative process Check-in Scan.
Meanwhile, on April 3, 2025, Spain’s Horizontal Property Law was amended, requiring three-fifths approval from homeowners’ communities before establishing new holiday rentals within residential buildings.
Key Highlights of the New Vacation Rental Law in the Canary Islands
Municipal power increases:
Local councils will determine where holiday rentals are appropriate to protect residential supply and manage tourism pressure.
Consolidated Tourist Use:
Owners may apply for a status that classifies a home strictly as tourist-use, valid for five years and renewable—with conditions.
Building and age restrictions:
Only a limited share of new construction may be allocated to holiday rentals. Homes must be at least ten years old to qualify—subject to further compliance over time.
Protected land ban:
Holiday rentals are prohibited on protected or environmentally sensitive land.
Mandatory registration:
Every holiday rental must be registered in the Single Tourist Rental Registry and display its official number in all listings
Community approval required::
The April 2025 reform mandates that at least 3/5 of homeowners—and 3/5 of voting power—must approve a new holiday rental setup
Main Criticisms from the Sector
ASCAV’s warning:
The Canary Islands Vacation Rental Association (ASCAV) argues the law could devastate the local economy. It may endanger over 25,000 homes, particularly those in extra-hotel complexes, leaving them in a legal gray zone
Barrier to small owners:
ASCAV calls the community-approval requirement “absolutely impossible,” asserting it unfairly penalizes individual owners—especially those using their property personally or seasonally—while favoring large hotel operators.
Threat to existing rentals:
ASCAV has pledged to appeal to the Constitutional Court, arguing that the law risks removing the rights of established operators and undermining legal stability.
The ASCAV Canary Islands holiday rental law is on its way—but with much still undecided. It represents the region’s ambitions to regulate tourism responsibly, but it also risks sidelining small owners and destabilizing investments. For property investors and rental agents in Lanzarote, staying informed and legally compliant is more critical than ever.
At Lanzarote Agents, we understand these complexities and are here to guide you through the new legal landscape—so you can operate confidently, legally, and effectively in the Canary Islands.
