Canary Islands court rules against private holiday rentals in tourist complexes
The High Court of Justice of the Canary Islands (TSJC) has issued three rulings that prohibit owners of apartments within tourist complexes from renting them out as holiday homes or using them as private residences themselves. Instead, the properties must be handed over to a single authorised tourism operator, in line with the Canary Islands Tourism Law.
The rulings affect properties in the Waikiki complex (pictured above) and Tisalaya Park in San Bartolomé de Tirajana, Gran Canaria. They uphold earlier decrees from the Cabildo of Gran Canaria which rejected applications from owners seeking to operate independently on platforms such as Airbnb.
At the heart of the dispute is the principle of “unidad de explotación” (single operator rule), set out in Article 38 of the 2013 Tourism Law, which requires that all units in a designated tourist complex be managed by one professional operator.
The TSJC argued that this model ensures higher quality standards and better consumer protection, even while acknowledging the “significant social, economic and legal debate” about whether the rule is too rigid or disproportionate.
Owners’ arguments rejected
Owners involved in the cases argued that the law violates their property rights and restricts free enterprise by preventing them from letting their properties as holiday rentals. One owner claimed he had offered his apartment to the official operator, Servatur, but his terms were rejected, leaving him no alternative but to rent independently.
Others argued that their complexes no longer had an active operator, or that the land had been reclassified as residential under planning law. The court dismissed these claims, ruling that the properties remain under tourist designation until officially changed by the authorities.
A controversial law
The Canary Islands’ 2013 Tourism Law has long been controversial. It prevents owners from living in their own apartments or renting them out independently, obliging them instead to cede control to an authorised operator.
Earlier this year, the Canary Islands Government announced a freeze on fines imposed on owners who had not placed their properties under official tourist exploitation. However, the Canary Islands Holiday Rental Association (ASCAV) recently denounced that sanctions are still being applied in practice, even for owners who only use their properties occasionally at weekends or during holidays.
The rulings reinforce the legal weight of the single-operator model, highlighting once again the deep divide between authorities, tourism operators, and private owners over the future of holiday rentals in the Canary Islands.
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