The Moment of Truth for Vacation Rentals

Thousands of small and medium‑sized owners of vacation homes are facing a “no‑living” situation after learning they may have to abandon their tourism business. All signs point to the Parliament approving the so‑called Housing Law this Wednesday, which, according to the Canary Islands Vacation Rental Association (ASCAV), will push 90 % of current operators out of the market. Why? Almost none will be able to meet the main requirement: holding a classified‑activity certificate.

“The new law will effectively eradicate the sector in the hands of small owners,” says ASCAV.

The imminent approval of the Housing Law, which introduces new restrictions on vacation rentals, is being denounced by those affected as a text that will end the activity for the overwhelming majority of private individuals. The Canary Islands government plans to give the green light to the Sustainable Regulation of the Tourist Use of Housing during the plenary session on Wednesday. ASCAV warns that this measure will “practically eradicate” the sector for small property owners.

The Main Conflict

ASCAV highlights the most contentious point: the mandatory municipal Classified Activities certificate. This requirement was designed in 2011 for other types of activities and did not contemplate vacation homes, which have only been regulated since Decree 113/2015. The association says it has been requesting a modification from the executive for years to accommodate this activity, but criticises the government—backed by the CC and PP—for pushing the law forward “without consensus” and ignoring sector proposals.

Accusations of Undermining Vacation Homes

ASCAV also reproaches the executive for “demonising” vacation rentals in the islands while, at the national level, it participates in the Seville Declaration signed by thirteen autonomous communities. That declaration argues that the housing‑access crisis is a “structural problem unrelated to tourism” and recognises the role of tourist homes in revitalising urban centres.

The association claims this view is supported by reports from the College of Economists of Las Palmas, the Economic and Social Council, and various legal experts. In its opinion, approving the law in its current form would have “catastrophic consequences” for thousands of families and companies managing vacation accommodations.

Data and Criticisms

• 67 % of vacation homes “were never and could not become” residential rentals because they are located in residentialised tourist complexes.
• The government has done nothing about the more than 211,000 empty homes identified across the archipelago.
• A public programme aimed at acquiring affordable housing, funded with over €8 million, managed to incorporate only a single property.

Potential Economic Impact

ASCAV argues the law favours large owners and investment funds at the expense of the families that have sustained the model so far. It urges the government, at the last minute, to “show sensitivity” toward those who depend on this activity for their livelihood. Otherwise, the sector could disappear, resulting in an economic impact exceeding €2 billion annually and a significant drop in IGIC and IRPF tax revenues.