The Canary Islands have long been a sun-drenched paradise for travellers seeking budget-friendly and convenient accommodation options — many of which are found through platforms like Airbnb. But this hotspot for international tourism is now at the centre of a major reform, as the Spanish government and Airbnb work together to crack down on illegal listings across the archipelago.

Following growing concerns about housing shortages and community disruption, the Spanish authorities are taking significant steps to regulate the vacation rental market more tightly. As part of this effort, Airbnb has pledged to identify and remove illegal short-term rental properties across the Canary Islands as part of a new agreement with the government. Here’s what hosts, investors, and travellers need to know about these changes — and how they could reshape the landscape for short-term lets in Spain.

Under new measures announced in June 2024, hosts on Airbnb in the Canary Islands will be required to display a valid registration number to continue listing their properties. Any hosts who fail to comply will have their properties delisted. This rule is part of a growing trend across Europe aimed at curbing unregulated vacation rentals, which some argue are contributing to unaffordable housing and the erosion of local communities.

According to Spain’s Ministry of Housing, there are around 49,000 tourist accommodations in the Canary Islands alone — many of which operate without the proper authorisation. This new partnership with Airbnb marks a significant push to bring transparency and legality to the market.

Spain’s Housing Minister, Isabel Rodríguez, said the move was “an important step forward in increasing transparency in tourism rentals” and promised that “working with platforms like Airbnb” would help “guarantee access to housing for residents.”

For vacation rental hosts who operate legally, this shift could be a welcome one. The mass removal of unauthorised competitors may actually benefit compliant hosts by levelling the playing field. However, for unregistered operators, the message is clear: either get regulated or get delisted.

These developments echo broader changes across the short-term rental landscape, including similar regulations introduced in cities like London and Amsterdam. In fact, London’s 90-day rule already restricts hosts from renting out entire homes for more than 90 nights per year without planning permission.

For property investors looking at international markets, understanding local regulations has never been more important. With rules tightening, it’s crucial to work with experienced Airbnb management services to ensure compliance and maximise returns.

Spain’s crackdown on illegal rentals is deeply connected to issues of housing affordability and availability. In popular tourist destinations like the Canary Islands, there’s growing frustration among locals struggling to find long-term accommodation at reasonable prices. Many blame short-term rentals for shrinking the available housing stock.

According to official figures, over 220,000 homes in Spain are currently being used as tourist rentals — a massive increase in just a few years. This has fuelled community protests and political pressure for stricter regulation. By targeting unregistered rentals on platforms like Airbnb, officials hope to return more homes to the long-term rental market and reduce housing pressure.

Similar policies have been implemented in other regions, including Valencia and the Balearic Islands. But with the popularity of the Canary Islands soaring due to year-round sunshine and affordable flights, the region has become a focal point for reform.

Travellers planning a trip to the Canary Islands via Airbnb aren’t likely to see immediate disruption. In fact, this move may benefit future visitors by increasing the quality and legitimacy of available listings. With mandatory registration, guests may enjoy safer and more standardised accommodation experiences.

That said, travellers are encouraged to check their booking carefully, ensuring their chosen property displays all the required licensing information before confirming a reservation. Booking a legal rental helps ensure a smoother trip without unexpected issues — especially since unregistered listings are now likely to be removed without notice.

For anyone unsure of the pros and cons of Airbnb vacations, check out our guide on what you should know before booking an Airbnb for your next holiday.

Spain isn’t alone in its efforts to clamp down on illegal short-term lets. Other countries across Europe, including Italy, Portugal, and France, have introduced or are considering similar crackdowns. Cities like Florence and Lisbon have already banned new Airbnb-style listings in designated zones due to escalating rent prices pushing locals out.

The European Commission is also working on an EU-wide framework to regulate short-term accommodation services more effectively. These proposals aim to ensure fair taxation, consumer protection, and compliance with local laws while maintaining the economic value of platforms like Airbnb.

Hosts looking to grow or maintain their business in a tightly regulated market will have to adapt quickly. Working with an experienced short-let management company can help ensure legal compliance while boosting profitability. For investors in cities like Bath, Bristol, and London, where rental regulations already exist, effective management is key.

Whether you’re operating in Spain, the UK or beyond, staying up to date with your legal obligations is essential for long-term success. Our guides on how to manage Airbnb properties and selecting the best management partner are excellent places to start.

The move by Airbnb to remove illegal listings in the Canary Islands represents a growing shift toward greater regulation and accountability in the vacation rental industry. While these changes may present challenges for unregistered hosts, they also open the door to a more stable, compliant, and guest-friendly ecosystem for short-term stays.

For hosts everywhere, the message is clear: transparency and legal compliance are no longer optional. And for travellers, the reassurance of a verified and registered stay may pave the way for a more reliable and enjoyable vacation experience.

Are you a UK-based host looking to future-proof your Airbnb business? Learn more about our expert Airbnb management in London and other key cities today.