New law puts brake on holiday rentals in Canary Islands

It's official: on 12 November 2025, the Canary Islands' parliament gave the go-ahead for the "Ley de Ordenación Sostenible del Uso Turístico de Viviendas".. This law replaces the old 2015 decree and significantly limits the granting of new rental licences.

For Belgian and Dutch owners and investors on Tenerife, Gran Canaria, Lanzarote or Fuerteventura, we list the key points.

1. Immediate stop on new rental licences (moratorium)

A period of 5 years in which there no new licences for holiday rentals (Vivienda Vacacional) is issued.

This pause is intended to give municipalities time to adjust their zoning plans. Only when a municipality has explicitly stipulated in its urban development plan where and how many rental is allowed, licences can again be granted on a piecemeal basis.

2. The '90/10' rule and municipal powers for holiday rentals in Canary Islands

The philosophy of the law is that housing takes precedence over tourism. Therefore, it stipulates that at least 90% of housing stock residential must remain; only 10% may be used for tourism purposes.

Municipalities determine whether a street or neighbourhood is suitable for letting. Until your municipality has done this homework (which they now have 5 years to do), the door will remain closed to new applications.

3. Limited access for prospective investors

Should the licence freeze be lifted in a municipality in the future, strict requirements will apply to new start-ups:

  • The 10-year rule: For a property to serve as a holiday home, it must be at least 10 years old is. Buying new buildings to rent out directly through platforms like Airbnb is thus definitely a thing of the past.
  • Ban on 'Pseudo-hotels': It is illegal for property developers or large owners to buy up entire residential buildings and 100% them for holiday rentals.
  • Social housing (VPO): Housing with social status is strictly prohibited for tourist use.

4. Good news for existing small owners?

For whom already have a legal licence has and complies with the old 2015 decree, there is relative reassurance. The law states that small owners who already rent out legally can "continue their activity normally".

This is not a free-for-all. The transitional regimes remain complex and municipalities will have six months to launch inspection plans. It remains important to make sure your current letting activity is done in accordance with the rules, as inspections will increase.

Note: the new legislation was not yet published at the time of publication of this article (20/11/2025). Therefore, the points quoted in this article may still change based on the final published legal text.

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