If you are considering investing in a property in Lanzarote with the aim of offering it as a holiday rental, it is important to understand the current legal landscape. Over the past year and a half, two draft laws have been presented regarding vacation rentals in the Canary Islands, but neither has been approved due to political disagreements. This lack of consensus has created uncertainty for both homeowners and investors seeking to comply not only with the existing Canary Islands Vacation Rental Law but also with the upcoming regulations that are expected to be passed in the near future.
Written by Lanzarote Agents
The New Sustainable Tourism Law: What Could Change?
The Law on the Sustainable Regulation of Tourist Use of Housing is a draft bill designed to balance the booming holiday rental sector with the protection of residential housing availability. If approved, this law could introduce significant changes for property owners and investors in Lanzarote, including:
- Municipal restrictions on where holiday rentals can operate.
- New technical and legal requirements for properties to qualify as vacation rentals.
- A stronger framework to ensure sustainable tourism growth while avoiding residential housing shortages.
Although the law is not yet approved, discussions suggest that a final decision may be made by late 2025 or early 2026. However, as this debate has been ongoing since early 2024, there is still uncertainty about when – or if – it will officially come into effect.
Community Regulations: The Impact of the Horizontal Property Law Reform
Beyond regional legislation, property owners must also consider the Reform of the Horizontal Property Law, which came into effect on April 3, 2025. This reform gives homeowner associations (communities of neighbors) the authority to regulate or even prohibit holiday rentals within their buildings or residential complexes.
What Does This Mean for Investors and Owners in Lanzarote?
The combination of the upcoming vacation rental law and the new community regulations makes it clear that obtaining a VV license is no longer a straightforward process. Property owners must carefully evaluate not only the legal requirements but also the dynamics within their communities.
For investors, this means carrying out due diligence before purchasing a property—not just in terms of location and amenities but also regarding the community’s stance on holiday rentals and the potential impact of future legislation.
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