Holiday rentals have been an important part of the property market in Tenerife for many years. More and more owners rent out their property (temporarily) to tourists, while many buyers also take this possibility into account when purchasing a home. This evolution has its advantages, but it also creates challenges, such as increasing pressure on the housing market, rising rental prices and reduced availability of homes for permanent residents.
In response, the Canary Islands government has introduced new regulations for holiday rentals. These rules determine where, when and under which conditions a property may still be rented out for tourist purposes.
For owners and buyers alike, it is therefore important to understand what exactly is changing and what this means in practice.
Holiday rentals are treated differently from permanent residential use
A key principle of the new law is the distinction between residential use and tourist rentals. When a property is used as a holiday rental, the law no longer considers it as ordinary residential use, but as an economic activity.
This means that:
- holiday rentals may be subject to different rules than permanent residential use;
- authorities may regulate or restrict this activity in order to safeguard housing availability and quality of life;
- holiday rentals may be restricted or excluded in certain areas.
Property ownership rights remain fully intact, but the use of a property for tourist rentals may be subject to additional conditions when this is necessary to maintain a balance between housing and tourism.
Local regulation: more powers for municipalities and island councils
The law places strong emphasis on local decision-making. Municipalities and island councils (cabildos) are granted broad powers to:
- define zones where holiday rentals are not (or no longer) permitted;
- designate areas where no new holiday rental properties may be added (zero growth);
- suspend holiday rentals temporarily or permanently in so-called stressed housing markets.
These measures may also apply in residential neighbourhoods, and not only in traditional tourist areas.
Not every property remains eligible (with concrete figures)
The law introduces clear suitability and quality criteria for properties used as holiday rentals.
Minimum surface area
As a general rule, a holiday rental property must have at least 35 m² of usable floor space.
Exception for smaller properties
Properties from 25 m² (the minimum habitability standard) may only be authorised if they include at least one additional qualifying feature, such as:
- a private parking space on the same plot;
- a private or communal swimming pool;
- sports facilities (gym, tennis, padel, …);
- wellness or health facilities;
- private outdoor space:
- urban areas: at least 9 m² per sleeping place;
- rural areas: at least 100 m² per sleeping place;
- an electric vehicle charging point.
Without at least one of these elements, tourist rental is not permitted.
Capacity and bathrooms
The law directly links facilities to the number of guests:
- more than 4 persons → at least 2 full bathrooms;
- more than 8 persons → at least 3 full bathrooms.
Other quality requirements
In addition, every holiday rental property must comply with the applicable regulations regarding:
- safety and fire prevention;
- accessibility;
- noise control;
- environmental protection and sustainability.
These requirements are assessed in accordance with existing building, planning and tourism regulations.
Registration remains required, but is not a guarantee
Anyone wishing to rent out a property as a holiday rental must still officially notify this through a declaración responsable (responsible declaration). By submitting this declaration, the owner confirms that the property meets all legal requirements for tourist rental.
This registration:
- allows the rental activity to commence;
- is not subject to prior approval by the authorities;
- may be checked afterwards.
In practical terms, this means that:
- the information provided must be accurate and complete;
- authorities may carry out more targeted and regular inspections;
- registration does not grant a permanent or unconditional right to continue renting.
If an inspection shows that the property no longer meets the requirements, or that the declaration is incorrect or incomplete, the holiday rental activity may be suspended immediately, potentially followed by administrative sanctions.
Transitional regime for existing owners
The law establishes a transitional regime for owners who were already legally operating their property as a holiday rental before the new legislation entered into force. This regime aims to prevent abrupt cessations, but does not provide an unlimited guarantee.
Who does this regime apply to?
The transitional regime applies to properties that:
- were legally operated as holiday rentals before the law entered into force;
- were correctly registered;
- and were operated effectively and without interruption.
Properties that were registered but not actively rented out for an extended period may fall outside this regime.
Specific additional regime
For properties that were already covered by a valid responsible declaration before 1 January 2024, the law provides an additional option under which the effects of that declaration may, under strict conditions, be extended for up to twenty years, in exchange for compensation (including, among others, long-term rental of newly built residential properties).
What does this mean in practice?
Owners falling under the transitional regime may, in principle, continue their tourist rental activity without the new rules being applied retroactively. The law does not recognise an acquired right, but rather the continuation of an existing situation, provided that:
- the property continues to meet all quality, safety and usage requirements;
- and there is no conflict with new local planning or zoning regulations.
No absolute guarantee
The transitional regime:
- is neither automatic nor unlimited;
- does not protect against future urban planning or zoning decisions;
- remains subject to inspections and enforcement.
It prevents an immediate suspension, but does not exclude the possibility that holiday rentals may be restricted or even prohibited in the longer term by local regulations.
No reason for unnecessary concern
It is important to stress that this new legislation is not intended to target owners who operate correctly. The law recognises that holiday rentals have long been an established reality in Tenerife, and that owners who operate their property legally, transparently and in accordance with the rules should not be arbitrarily excluded.
Those who currently:
- are correctly registered;
- meet the applicable quality and safety standards;
- and manage their holiday rental property with due care,
are unlikely to experience immediate problems as a result of the new regulations.
The focus lies mainly on guiding future developments and limiting uncontrolled growth. Existing, properly operated holiday rentals remain, in principle, possible, although they continue to be subject to local regulations, inspections and potential future planning decisions.
What does this mean for buyers and investors?
For new purchases, the context changes significantly:
- holiday rental is no longer automatic;
- local planning and zoning rules are decisive;
- future restrictions remain possible.
Anyone investing with the aim of tourist rental should seek legal and planning advice in advance. Profitability and regulation are more closely linked than ever.
Conclusion
The new regulations make it clear that holiday rentals in Tenerife remain possible, but within clearly defined boundaries. The focus shifts from unlimited growth towards a balanced relationship between tourism, housing and quality of life.
For owners and buyers, this primarily means clarity, responsibility and the importance of proper guidance.
Source
This article is based on the official legislation published in the Boletín Oficial del Estado, reference BOE-A-2025-26358 – Ley de ordenación del uso turístico de viviendas en Canarias (23 December 2025).
Personal guidance and advice
Buying, selling or operating property in Tenerife requires accurate information and local knowledge more than ever. Regulations differ from one municipality to another.
We guide our clients personally and transparently, from the initial orientation to well beyond the purchase. Thanks to our local presence and close cooperation with partners, we can advise you in a realistic, clear and tailor-made manner on living, investing and (holiday) renting in Tenerife.