Canary Islands Court Annuls Granadilla de Abona Vacation Rental Regulations

The High Court of Justice of the Canary Islands (TSJC) has struck down provisional regulations for vacation rentals in Granadilla de Abona, setting a significant precedent for urban planning across the islands. The court ruled in favor of the Canary Islands Vacation Rental Association (Ascav), citing a fundamental legal error that cannot be fixed.

The core issue was the city’s failure to conduct a strategic environmental assessment. While Granadilla de Abona officials argued that their rules were covered by the 2005 General Urban Development Plan and therefore didn't need a new environmental review, the court disagreed. Citing Supreme Court doctrine, the judges ruled that such regulations act as "complementary planning," making environmental oversight mandatory. They noted that internal administrative assessments or external consultations—which the previous local government relied upon—are not sufficient substitutes for this legal requirement.

The ordinance, which was finalized in February 2025, is now void. This leaves the status of 1,918 vacation homes—roughly 9% of the town’s housing stock—in uncertainty. The now-annulled rules had previously set specific limits on where rentals could operate, banning them in public housing and high-demand areas while allowing them in certain single-family or mixed-use properties.

This ruling comes as the region adapts to Law 6/2025, which mandates that residential land no longer automatically permits vacation rentals; owners must now obtain express municipal approval. Consequently, the municipality must now follow regional transitional rules, which include a five-year freeze on new licenses while the local government drafts a new ordinance that meets the court’s environmental standards. While the ruling can still be appealed to the Supreme Court, it highlights the ongoing difficulty of balancing tourism growth with housing sustainability in a strained market.