This guide provides a detailed overview of the current and new regulations for Vivienda Vacacional (VV) licenses and short-term rentals in the Canary Islands. It is intended for property owners, investors, and prospective rental managers seeking to understand the legal landscape.
Get Legal Advice on VV LicensesThe current framework is primarily governed by the Decreto 113/2015, which established the legal basis for holiday rentals in the Canary Islands.
The property must be classified as a Vivienda Vacacional, defined as a furnished property rented as a whole, for short-term stays.
To legally operate, you must submit a Declaración Responsable (a sworn declaration of compliance) to the relevant local authority. The property must then be registered in the Registro General Turístico of the Canary Islands.
The application requires a comprehensive set of documents, including:
The property must meet specific standards, including a minimum habitable surface area (often 25m² for studios), a visible identifier plaque (placa-distintivo), and an emergency information board in multiple languages.
A new law, effective from April 3, 2025, introduces significant changes aimed at regulating the market and addressing the housing crisis. These regulations mark a major shift from the previous framework.
Any new VV license application for properties must be for a building that is at least 10 years old.
From July 2, 2025, a new national, unified registry system, the Ventanilla Única, will be implemented. This system is designed to create a single point of registration for all tourist accommodation in Spain.
The new law introduces the concept of zonas tensionadas, where local municipalities can suspend the issuance of new licenses for up to five years to protect residential housing.
This new provision allows municipalities to recognize specific areas where tourist use is already well-established. This could potentially protect existing rentals in certain locations from the new restrictions.
Beyond the initial license, owners must adhere to continuous compliance requirements.
All guests must be registered with the relevant authorities. The new national online platform for this is SES. HOSPEDAJES, which replaced older regional systems as of December 2024. Property owners are required to submit the personal details of all guests to the authorities (National Police or Guardia Civil) within 24 hours of check-in.
Short-term rental income is subject to the Canary Islands' General Indirect Tax (IGIC) at a rate of 7%.
Owners must pay income tax on their rental earnings. The rate is 19% for EU residents, Norway, or Iceland, and 24% for non-EU residents.
The regulatory landscape is highly dynamic and subject to ongoing political debate.
The current law has been subject to legislative discussion, with proposals for further restrictions being considered. For example, some political parties have proposed limiting the number of VV licenses to a maximum of three per owner to curb speculation, although this has not been adopted as of now.
There is a clear divide between different interest groups. Rural tourism associations are advocating for stricter enforcement to protect their businesses, while a platform of small owners feels targeted by regulations that favor large tourist operators.
The evolving legal framework requires expert interpretation to ensure full compliance with current and upcoming regulations.
Non-compliance can result in heavy fines and license revocation. Professional guidance protects your investment.
Proper structuring of your rental business can minimize tax obligations while maintaining full legal compliance.
Regulations continue to evolve. Professional legal support ensures you stay compliant as laws change.
Our experienced bilingual lawyers specialize in Canary Islands holiday rental law. We guide property owners through VV license applications, community approvals, tax compliance, and ongoing regulatory requirements.
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