European Law Provides Path to Limit Vacation Rentals in Favor of Residential Use

The president of the Canary Islands Economic and Social Council, Sergio Melián, suggests that European jurisprudence offers a method to prioritize residential use of properties over vacation rentals when there’s a proven need to protect housing access.

He notes that the European Court of Justice recognizes general interest objectives that can justify such restrictions, provided they are necessary, proportionate, and based on objective criteria.

Melián emphasizes the importance of maintaining a permanent population and reducing reliance on second homes or tourism. He argues that measures focusing on the actual use of properties have a stronger legal basis than a blanket ban on purchases by non-residents.

He recalls a 2020 European Court of Justice ruling that upheld a French regulation requiring prior authorization for repeatedly renting out furnished properties for short stays, aimed at preserving long-term residential rental supply.

Melián stresses the need for detailed information on property prices, availability, and the impact of different uses on the housing market in the Canary Islands.