The Canary Islands, one of Spain’s most popular tourist destinations, is now at the forefront of a national crackdown on illegal short-term rentals that are exacerbating the housing crisis for local residents. In a move that could have widespread implications for hosts and tourists alike, Airbnb has announced it will begin removing thousands of listings deemed illegal by local government authorities.

Spain’s effort to regulate the booming short-term rental market is part of a broader strategy to restore balance between tourism and resident welfare in places overwhelmed by visitors. And in the Canary Islands—where tourism accounts for over 35% of the GDP—the pressure has mounted for authorities to act quickly.

The surge in short-term rentals, particularly through platforms like Airbnb, has drastically pushed up rent prices in the Canary Islands, leaving many locals unable to afford housing. Complaints have poured in over the years from residents, activists, and even government officials who argue that residential properties are being commercialised at the expense of community stability.

The Canary Islands Government recently introduced new legislation that requires all short-term rental properties to obtain proper licensing and comply with a strict set of rules, including zoning requirements and health and safety standards. Properties that don’t meet these standards risk being delisted, fined, or worse.

Madrid has backed the Canary Islands’ position, citing the importance of ensuring that residential housing is accessible to residents and not solely for profit-driven holidaymakers. This move is not isolated; across Europe, cities such as Amsterdam, Paris and Berlin have also enforced stricter regulations on Airbnb-style platforms in an attempt to curb overtourism and prioritise local housing needs.

Airbnb has confirmed it is cooperating with Canary Islands authorities to eliminate listings that breach the law. A spokesperson for Airbnb stated that the company is working to “promote responsible and sustainable tourism” aligned with local regulations. This includes ensuring that all hosts are registered and that their properties meet the newly introduced regulatory requirements.

This isn’t the first time Airbnb has had to alter its approach. In London, the platform has already implemented the 90-day rule, which prevents properties from being rented out for more than 90 days a year without a specific permit. Similar policy shifts are now becoming the norm in other popular travel hotspots around Europe.

The changes pose significant challenges for many hosts operating in the grey zone between legality and convenience. Those who rely on Airbnb rental income but have yet to register or comply with the new standards may see their listings removed, severely impacting their earnings. For tourists, this may mean fewer choices when booking accommodation on the island, potentially driving up prices and shifting demand towards hotels or formally licensed rentals.

For property owners in regions like Bath, Bristol, or London, this situation offers a cautionary tale. Staying ahead of regulatory compliance is not just smart—it’s essential for long-term viability in the short-let market.

The complexities of these evolving regulations emphasise the benefit of professional Airbnb management services. Expert guidance helps hosts stay compliant with property laws, avoid fines, and provide a consistent experience for guests. As authorities continue to scrutinise short-term rentals, having a knowledgeable partner for everything from licensing to guest communication is rapidly becoming a must-have.

In fact, turning to experienced Airbnb management companies can relieve property owners of the hassle while maximising profitability through dynamic pricing, professional cleaning, and expert marketing—a far cry from the DIY hosting once popular on the platform.

Spain has always been a major drawcard in Europe’s tourism sector, and with rising concerns over resident welfare, tourism sustainability has become a top priority. The Canary Islands’ initiative to regulate illegal listings could serve as a blueprint for other Spanish regions facing similar pressures from overtourism.

Moreover, this isn’t just about housing. Authorities see it as a way to promote fairness in tourism, with legally compliant hosts enjoying the benefits of a regulated market while tourists can trust the legitimacy and safety of the properties they book.

The removal of illegal Airbnb listings in the Canary Islands underscores a significant turning point in the global discussion around tourism versus liveability. It suggests that short-term rental regulations will only grow tighter as governments grapple with housing shortages, sustainability, and the long-term consequences of mass tourism.

Whether you own a flat in London or a villa in Tenerife, the days of unregulated short-term holiday letting are rapidly coming to an end. Knowledgeable property owners who align with local laws, utilise professional services, and prioritise sustainable practices will not only survive—but thrive—in this evolving market.

To read more about how professional management is shaping the future of Airbnb hosting, check out this article on Airbnb in London.

For more insights on European tourism policy and regulations, refer to this Euronews guide to overtourism policies.