Spain is taking a hard stance against unregulated short-term rental properties, particularly in popular tourist hotspots like the Canary Islands. As part of a broader initiative to protect affordable housing and preserve local culture, Airbnb is now under pressure to remove thousands of listings that fail to comply with regional government regulations.

In a move that could significantly alter the vacation rental landscape, the Canary Islands’ government has ordered Airbnb to de-list properties that are operating without a permit — declaring them illegal. Approximately 30,000 listings are at risk of removal, creating uncertainty for both hosts and travellers.

The Canary Islands, which include popular destinations like Tenerife, Gran Canaria, and Lanzarote, have seen a steady rise in short-term holiday accommodations. While profitable for many property owners, the unchecked growth of vacation rentals has exerted pressure on the local housing market, pushing up prices and making it increasingly difficult for residents to find affordable long-term homes.

The regional government believes that illegal tourist rentals have reached unsustainable levels, and this new crackdown aims to balance the demands of tourism with the needs of local communities. Part of a broader effort underway across Europe to regulate holiday rentals, Spain’s action reflects growing concerns about the disruptive impact of mass tourism.

Under current Canary Island regulations, property owners must obtain specific permits to rent out homes to tourists. This includes meeting safety, zoning, and quality requirements. Failure to comply results in listings being classified as illegal — a label that now has serious consequences as platforms like Airbnb are ordered to purge these listings from their sites.

Spain’s tourism ministry is also encouraging compliance by collaborating with hosting platforms and offering regulatory guidance for those willing to legitimise their operation. However, thousands of hosts continue to operate without the necessary licences, either due to confusion over complex rules or in an attempt to avoid taxes and fees.

For local hosts, especially those who rely on Airbnb income, this crackdown could be financially devastating. Additionally, guests who have already booked illegal rentals may face cancellations or last-minute changes to their accommodation.

Hosts who wish to continue renting legally may face tough decisions: either stop offering their property on platforms like Airbnb or go through the often complicated and time-consuming process of becoming fully compliant. These challenges highlight the growing need for professional Airbnb management services that can help hosts navigate changing legal landscapes and avoid costly mistakes.

In response to the crackdown, Airbnb has stated that it is committed to working with governments across Spain and Europe to ensure proper regulation and support for responsible tourism. The platform is also pushing for clear, fair, and consistent rules so that hosts can easily follow the law.

Airbnb’s cooperation could involve deploying stricter verification mechanisms, compliance tools, and steps to educate hosts about their obligations. This aligns with the company’s broader efforts to reform itself amid global scrutiny — similar moves have already been seen in cities like Amsterdam, Barcelona, and New York City.

With regional governments taking firmer stands and enforcement measures becoming more common, Spain’s regulatory trend suggests that future growth in the short-term rental market will come with tighter controls. Hosts in regions such as Madrid and Barcelona may soon face similar pressures to acquire proper licensing or risk removal from popular platforms.

For those venturing into hosting, this is a pivotal moment. Partnering with experienced management companies can help ensure listings remain compliant, competitive, and profitable. If you’re exploring short-term rental opportunities, our in-depth guide on how to manage Airbnb properties offers practical insights to stay ahead in this evolving regulatory climate.

Legal compliance is non-negotiable when running a short-term rental, especially in high-demand locations like the Canary Islands. Hosts must:

• Apply for the appropriate local permits or licences
• Understand rental limits (some regions cap the number of days a property can be rented)
• Follow safety, hygiene, and insurance protocols
• Accurately represent their listings to avoid fines

Whether you’re managing an Airbnb in Oxford or launching one in Bristol, staying informed is the first step towards sustainable and legal hosting. Learn more about best practices in our article on maintaining your Airbnb property.

The Canary Islands case reveals a wider challenge: how to maintain thriving tourism economies without displacing local communities. Holiday rentals offer perks to property owners and tourists alike, but they must be managed within the bounds of law and local interest.

The United Nations World Tourism Organization advocates for responsible tourism that protects housing affordability and local livelihoods — a goal echoed by Spanish regulators. Balancing these competing interests will be key as short-term rentals continue to grow globally.

Spain’s Airbnb crackdown in the Canary Islands is a wake-up call for short-term rental hosts around the world. Operating illegally is no longer a risk-free decision, and listing platforms are now being held accountable. As this regulatory wave continues to roll through Europe, hosts must adapt or step away.

Fortunately, the right help exists. At Moa & Kin, we are industry leaders in Airbnb management in Oxford and beyond, offering tailored support for hosts who want to stay compliant and successful. Whether you’re just starting or re-evaluating your strategy, let’s ensure your listing thrives in a legal, sustainable way.