Court Overturns Granadilla de Abona’s Vacation Rental Ordinance

The Canary Islands’ Superior Court has invalidated Granadilla de Abona’s vacation rental ordinance because it bypassed a necessary strategic environmental assessment. This procedural misstep impacts more than 1,900 vacation homes, constituting over 9% of the area’s housing stock. The ruling underscores the importance of thorough planning in municipal regulations.

Challenged by the Canary Association of Vacation Rentals (Ascav), the ordinance was criticized for insufficient justification. The court’s stance aligns with the Supreme Court’s precedent that such regulations must undergo environmental evaluations. This oversight in municipal planning has now been highlighted.

With the ordinance annulled, Granadilla de Abona falls under the transitional provisions of a regional law effective since December 2025. This law mandates explicit municipal approval for vacation rentals on residential land, complicating new license issuances. Property owners and investors face a five-year window to adjust to these regulatory shifts.

As the municipality navigates these changes, there may be a temporary pause in new vacation rental licenses. However, the demand for vacation properties remains robust, and investors should stay informed about regulatory updates that could influence their interests in the Canary Islands.