Spain is tightening the reins on its burgeoning short-term rental market, and Airbnb is in the spotlight once again. With increasing pressure from local authorities and rising tensions among residents, the Canary Islands have become the latest battleground in the fight against illegal holiday rentals. This new crackdown could shift how tourists book their Spanish holidays—and how hosts operate their properties.

In this article, we’ll break down the developments in Spain’s rental market legislation, the implications for Airbnb hosts and holidaymakers, and what property owners must do to stay compliant in an evolving landscape.

The Canary Islands, a popular vacation destination known for their volcanic landscapes and year-round sunshine, have recently garnered attention for the wrong reasons. Faced with an increasing housing crisis and growing discontent from locals about rising rents and overcrowding, regional authorities are launching a campaign to root out illegal short-term rental listings operating without proper licences.

Airbnb has responded by pledging to remove these unlicensed listings, but tension is high. Over 65,000 apartments are thought to be operating illegally across the Canary Islands—nearly 50 percent of all listed properties. This not only disrupts the housing supply for locals but creates a competitive imbalance for legitimate hosts.

Spain’s local authorities—particularly in tourist-heavy areas like Tenerife and Gran Canaria—are levying fines, updating legislation, and demanding greater transparency from platforms like Airbnb. The islands have announced an “inspection campaign” with significant fines expected for offenders.

The core issue? A loophole exploited by many renters—neglecting registration requirements set by tourism councils. These requirements vary between municipalities, often causing confusion. The response from platforms has ranged from warnings to delisting non-compliant properties. But as the Spanish government clamps down, hosts now face a binary choice: comply or be removed from the platform.

Spain is not alone. Across Europe, cities are implementing restrictions on holiday lets to address issues such as housing shortages, transient overcrowding, and the hollowing-out of residential neighbourhoods. Barcelona, a pioneer in such regulation, is banning Airbnb-style short-term private room rentals by 2028.

In the Canary Islands, such sentiments are echoed through local activism, protests, and escalating demands for change. Towns like Lanzarote have already announced plans to limit the number of tourist beds across the island. This reevaluation of tourism models is prompting Airbnb hosts and property managers across Spain to think strategically and proactively.

For holidaymakers, the policy changes might mean fewer Airbnb options in hot destinations like Tenerife and Fuerteventura. With Airbnb beginning to filter out unregistered listings, travellers will need to be more vigilant—booking only with vetted, legal properties to avoid cancellations or fines.

Meanwhile, hosts across Spain need to ensure their properties comply with local rules, from obtaining the correct licences to following safety and quality standards. Proactive, professional property management is becoming critical to ensure listings not only stand out but remain on platforms like Airbnb legally and effectively.

Managing an Airbnb in such a fast-changing legal landscape is no easy task. That’s why many homeowners are turning to Airbnb management services in London and other major UK cities to help navigate complex regulations, maximise returns, and ensure a smooth guest experience.

At Moa & Kin, we specialise in turning your short-term rental into a thriving business while maintaining compliance with local and national regulations. Whether you’re managing a primary residence or multiple investment properties, we streamline operations from check-ins to cleaning, smart pricing, and guest communication.

For example, if you’re operating in a regulated market like Bath, our guide to maintaining your Airbnb in Bath can help you stay ahead of changing rules while enhancing guest satisfaction.

Airbnb has stated that it supports “clear and proportionate rules” and wants to collaborate with governments to implement fair tourism models. However, with local pressure intensifying and significant fines on the horizon, there is growing urgency for platforms to take proactive steps in monitoring illegal activity and notifying hosts of legal requirements.

As hosts, relying solely on Airbnb for compliance might no longer be enough. Setting up your property for long-term success involves a deep understanding of market dynamics, local legislation, and guest expectations—something platforms alone can’t guarantee.

If you’re a property owner considering entering or expanding in the holiday rental market, now is the time to understand the full picture of short-let regulations and sustainable practices. With cities like Oxford, Barcelona, and now key regions of Spain enforcing stricter controls, forward-thinking hosts are already adapting their models.

Learn how professional support can help you maintain profitability and peace of mind in a changing landscape. Explore our tips on managing Airbnb properties or discover how policy changes like the 90-Day Rule in the UK might influence your investment or hosting strategy.

Spain’s crackdown on unregistered Airbnb listings in the Canary Islands is a significant signal to hosts across Europe. As authorities seek to rebalance the housing market and manage overtourism, both travellers and landlords must remain informed and adaptive. Whether you’re hosting in Tenerife or thinking of unlocking your property’s potential in Bristol or London, staying compliant is key to long-term success.

Professional Airbnb management ensures your property not only complies with the law but delivers the highest standard of guest experience—ultimately safeguarding your investment and unlocking returns.