The New Law on Viviendas Vacacionales in the Canary Islands: End of the Era of Rogues and the Need for Professional Management
What may change with the new law on Viviendas Vacacionales in Gran Canaria?
Lately, many people have been asking me what I think about the new law on short-term rentals(Viviendas Vacacionales) that will soon be introduced in the Canary Islands, and what the possible consequences will be. This long-awaited legislation will bring significant changes, especially in Gran Canaria, where the tourism sector is one of the main economic sources.
Increased controls and penalties
The central goal of the new law is to combat squatting in the short-term rental sector. All landlords who rent their homes on a short-term basis will be obliged to officially register by obtaining a Vivienda Vacacional license. This license will be essential to operate legally and can only be applied for if the property meets a number of specific requirements under the law. Owners will have to register their guests through the police system, complying with all legal regulations regarding security and tourist registration
One of the key points of the law is also the obligation to maintain properties in perfect condition. Accommodations for short-term rentals will have to meet high standards of safety and hygiene, as well as comply with all applicable zoning regulations. Only properties that meet these criteria will be able to obtain or maintain a license. Homes that do not comply with the new standards will not be able to be rented out legally, and in the case of illegal rentals, owners will be subject to heavy penalties
The role of the Model 179
One control measure that has already been introduced, but is little known to many landlords, is the use of Form 179. This tool, which is used by the Spanish Internal Revenue Service, collects information on income from short rentals. Booking portals, such as Airbnb or Booking, are obliged to periodically report data on short rentals, including amounts earned and information about the property and the owner. In this way, those who rent irregularly are easily detected and risk tax penalties
Consequences for those who rent illegally
For those who rent illegally, the new law represents a call to action: it will be necessary to come into compliance. This means obtaining a Vivienda Vacacional license, registering guests regularly, and ensuring that the property complies with all regulations required by law. Failure to do so will result not only in heavy fines, but also the possibility of losing the right to rent the property. The regulations are designed to improve the quality of short rentals, reduce unfair competition, and ensure that all owners contribute fairly to the tax system
End of the era of "smart people"
With the coming into force of the new law, the era of “furbies” who improvisedly managed their properties in Vivienda Vacacional will end. No longer will it be possible to rent apartments independently and loosely, without speaking Spanish or having a local reference. The law will impose more responsibility: renters will have to be prepared for possible inspections by tourist authorities or the police. In addition, it will be impossible to continue evading taxes without having a Spanish bank account, with the practice of sending profits abroad. The new regulations aim to combat precisely this type of abuse
An additional aspect concerns agencies or the friend of the friend who loosely manages Viviendas Vacacionales. Those who manage a property will have to regularly issue invoices for commissions, cleaning, and guest stays, indicating precisely the dates of the stay. This will put an end to “housekeeping” by unskilled people, often recommended without real experience. The danger for owners lies in the fact that the Spanish Internal Revenue Service will cross-check these people’s bank accounts and then trace them back to the owners. This could lead to hefty fines for those who entrust their Vivienda Vacacional to individuals or agencies that do not manage the property in a way that complies with the law
My advice? Before entrusting the management of your Vivienda Vacacional to an agency, it is essential to make sure that the agency handles not only operational management, but also fiscal management. This is the only way to avoid ending up in complex legal and tax situations. Making sure that management is done properly is an essential step in protecting your investment
Future prospects
With the introduction of the new law and the controls already in place through Model 179, the short-stay rental market in Gran Canaria will undergo a significant increase in transparency and regularity. For landlords operating legally, this could represent an opportunity to emerge in a fairer and more regulated environment. On the other hand, those who do not comply will be exposed to increasing risks, not only in terms of penalties, but also in terms of losing the right to rent the property.
My thoughts on Vivienda Vacacional and its future in Gran Canaria.
In my opinion, despite tight regulation, it is very unlikely that we will ever completely eliminate the Viviendas Vacacionales market. This type of rental represents one of the biggest sources of income for the islands, and tourism is the engine that keeps the archipelago’s economy going. If no one were to invest in short-rent properties anymore, it would create a ripple effect that could lead to a significant economic crisis.
Real estate investments generate a vital flow of money: from buying homes to renovating them, from maintenance to paying taxes and fees. In addition to this, short rentals feed many other sectors: catering, transportation, trade and local services. If this system were dismantled, the impact would ripple through all these activities, creating a vicious cycle that would drastically reduce the inflow of outside capital. Less real estate investment would mean fewer jobs and less growth for the local economy.
In conclusion, regulation is important to ensure that the sector operates in a fair and sustainable manner, but eliminating Vivienda Vacacional altogether would not be realistic or desirable. The Canary Islands need a steady flow of investment and tourists to keep its economy alive, and the real estate and short-rental sector is an essential part of this
Trust us for safe and legal management of your Vivienda Vacacional
If you own a property for rent and want to ensure that it is managed in compliance with the law, without the risk of penalties or bureaucratic complications, you can contact us. Our team will take care of all aspects related to the management of your Vivienda Vacacional, including registration, issuing invoices, tax management and compliance with all regulations under the new law. With our experience, we will help you turn your investment into a quiet and secure success.
