Tenerife Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Tenerife, Spain?

Tenerife, the largest of Spain's Canary Islands, is a popular tourist destination known for its stunning beaches, vibrant nightlife, and year-round warm climate. With the rise of STR booking sites like Airbnb and Vrbo, many property owners are looking to capitalize on the island's tourism boom by offering short-term rentals. However, navigating the complex web of regulations governing vacation rentals in Tenerife can be challenging.

Starting a Short-Term Rental Business in Tenerife

To legally operate a short-term rental in Tenerife, property owners must follow several key steps:

• Obtain a Vivienda Vacacional (VV) license: This involves submitting a sworn declaration (Declaración Responsable) affirming that your property meets all the requirements for tourist rentals. The application must include various documents, such as proof of property ownership, a habitation certificate, and an urban planning report.
• Register with the police: Hosts are required to register their guests' details with the police within 24 hours of check-in using the Alloggiati Web portal.
• Comply with safety standards: Properties must meet certain safety requirements, including having fire extinguishers, smoke alarms, and emergency contact information prominently displayed.
• Collect tourist tax: Hosts are responsible for collecting the tourist tax (Impuesto sobre las Estancias Turísticas) from guests and remitting it to the tax authorities. The current rate is €0.50-€2.00 per person per night, depending on the type of accommodation.

It's important to note that in some areas of Tenerife, such as tourist zones, short-term rentals may be prohibited altogether unless the property is located within a designated "turistic complex". These complexes must have a management company that has registered at least 50% of the units with the tourism authorities.

Failure to comply with these regulations can result in hefty fines. In 2018, the Canary Islands government launched a crackdown on illegal vacation rentals, with inspectors issuing over €2 million in penalties. Common violations included operating without a VV license, failing to register guests with the police, and exceeding occupancy limits.

Despite the strict rules, many property owners continue to offer short-term rentals in Tenerife, often flying under the radar of authorities. On Reddit and BiggerPockets forums, some hosts report operating without all the necessary permits and taking advantage of lax enforcement in certain areas. However, as the government ramps up efforts to regulate the market, the risks of non-compliance are growing.

For those looking to start a short-term rental business in Tenerife, it's crucial to carefully research the specific rules and restrictions in your local area. Consulting with a lawyer or specialized property management company can help navigate the complex legal landscape and ensure full compliance with all applicable regulations.

Short-Term Rental Licensing Requirement in Tenerife

To legally operate a short-term rental property in Tenerife, owners must obtain a specific license known as the "Vivienda Vacacional" (VV) license. This license is mandatory for any property being rented out to tourists for periods of less than three months.

The process of obtaining a VV license involves submitting a sworn declaration (Declaración Responsable) to the Cabildo de Tenerife, affirming that the property meets all the necessary requirements for tourist rentals. This declaration must be accompanied by various documents, such as:

1. Proof of property ownership (e.g., title deed or nota simple)
2. First Occupancy License (Licencia de Primera Ocupación) or Habitation Certificate (Cédula de Habitabilidad)
3. Technical report from an architect confirming the property's suitability for tourist use
4. Floor plan of the property
5. Photographs of each room
6. Proof of payment of the Impuesto sobre Bienes Inmuebles (IBI) property tax
7. Certificate from the community of owners (if applicable) stating that short-term rentals are permitted

Once the declaration and supporting documents are submitted, the property will be automatically inscribed in the General Tourist Register and assigned a unique registration number. This number must be prominently displayed in all advertising and at the entrance of the property.

It's important to note that properties located in tourist complexes or urbanizations are generally not eligible for VV licenses, as they are required to operate under a different licensing regime with a sole designated management entity. VV licenses are primarily intended for standalone properties or those in residential buildings without express prohibitions against short-term rentals in their statutes.

Failure to obtain a VV license and comply with the associated requirements can result in significant fines and penalties. In recent years, Tenerife authorities have cracked down on unlicensed holiday rentals, with inspectors issuing millions of euros in fines for violations such as operating without a license, failing to register guests, and exceeding occupancy limits.

While the VV licensing process may seem daunting, it is a necessary step to ensure the safety and quality of tourist accommodations and to support the regulated growth of the vacation rental market in Tenerife. Owners are encouraged to seek guidance from local professionals, such as property managers or legal advisors, to navigate the application process and ensure full compliance with all regulations.

Required Documents for Tenerife Short-Term Rentals

To legally launch a short-term rental in Tenerife, property owners must provide several key documents to the authorities:

1. Vivienda Vacacional (VV) License: This is the most important document required for short-term rentals in Tenerife. To obtain a VV license, owners must submit a sworn declaration (Declaración Responsable) affirming that their property meets all the necessary requirements for tourist rentals. This declaration must be accompanied by various supporting documents, such as proof of property ownership, a habitation certificate, and a technical report from an architect.
2. First Occupancy License (Licencia de Primera Ocupación) or Habitation Certificate (Cédula de Habitabilidad): These documents certify that the property is suitable for habitation and meets all necessary safety and quality standards. If the property is newly built, the First Occupancy License should have been issued when construction was completed. For older properties, a Habitation Certificate may be required.
3. Property Title Deed (Escritura): Owners must provide a copy of the official property ownership document, which proves their legal right to rent out the property.
4. Nota Simple: This is a land registry document that summarizes the property's legal information, such as ownership details and any encumbrances or charges.
5. Community of Owners Certificate: If the property is located within a complex or building with shared facilities, owners must provide a certificate from the community of owners stating that short-term rentals are permitted under the community statutes.
6. Complaint Forms: Owners must have official complaint forms (Hojas de Reclamaciones) available for guests to fill out if they wish to make a complaint about the property or service.
7. Valid ID or Passport: Owners must provide a copy of their own valid identification document, such as a passport or national ID card.

In addition to these documents, owners must also register their guests' details with the police within 24 hours of check-in using the Alloggiati Web portal. This is a mandatory requirement for all tourist accommodations in Spain.

Failure to provide the necessary documentation or comply with the registration requirements can result in significant fines and penalties for short-term rental operators in Tenerife. Fines for operating without a VV license or failing to register guests can range from €1,500 to €30,000.

Given the complexity of the short-term rental regulations in Tenerife, many owners choose to work with specialized property management companies or legal advisors to ensure they have all the required documents and are fully compliant with the law. While the process may seem daunting, having the proper paperwork in place is essential for running a successful and legal vacation rental business on the island.

Tenerife Short-Term Rental Taxes

Short-term rental owners in Tenerife are subject to various tax obligations, including income tax and the Canary Islands General Indirect Tax (IGIC).

Income earned from short-term rentals is considered rental income and must be declared on the owner's annual tax return. For tax residents of Spain, this income is taxed at the progressive rates applicable to their total income, ranging from 19% to 45%.

Non-resident owners are subject to the Non-Resident Income Tax (IRNR) on their rental income. The tax rate is 19% for residents of other EU/EEA countries and 24% for residents of non-EU/EEA countries. Non-EU/EEA residents cannot deduct expenses and must pay tax on gross rental income.

In addition to income tax, short-term rental owners in Tenerife must charge and remit the IGIC, which is similar to VAT but specific to the Canary Islands. As of 2023, the IGIC rate for short-term rentals is 7%.

Owners must register with the Canary Islands Tax Agency, submit quarterly IGIC returns, and issue invoices, including the 7% IGIC to their guests. If using platforms like Airbnb or Booking.com, owners must ensure the 7% IGIC is added to the rental price and remitted to the tax authorities.

It's important to note that there are no longer any IGIC exemptions for non-resident owners offering short-term rentals in Tenerife. This change, effective January 2023, is estimated to result in a 7% increase in nightly rates for guests.

Failure to comply with these tax obligations can result in significant penalties. Owners must keep accurate records of their rental income and expenses and file tax returns within the prescribed deadlines.

Given the complexity of the tax system, many short-term rental owners in Tenerife choose to work with local tax advisors or property managers to ensure full compliance. While the tax burden may seem high, it's a necessary cost of doing business in this popular tourist destination.

As the short-term rental market continues to evolve, it's crucial for owners to stay informed about any changes to the tax regulations and seek professional advice when needed. By understanding and fulfilling their tax responsibilities, owners can operate their rentals legally and contribute to the sustainable development of Tenerife's tourism industry.

Spain Wide Short-Term Rental Rules

In addition to the specific regulations in Tenerife, there are also several nationwide rules in Spain that apply to short-term rentals:

1. Tourist Accommodation Registration: All properties used for short-term rentals must be registered with the regional tourism authority. The exact process varies by autonomous community, but generally requires submitting a declaration of responsibility affirming the property meets all standards for tourist accommodations.
2. Guest Information Reporting: Hosts are required to provide certain information about their guests to the police, including their full names, passport or ID numbers, and dates of stay. This must be done within 24 hours of check-in via the online "Alojamientos Turísticos" platform.
3. Minimum Stay Requirements: Some regions and cities have introduced minimum stay requirements for short-term rentals to combat the negative impacts of "touristic use" on local housing markets. For example, the proposed national law would enforce a two-night minimum in Spain's 14 metropolitan areas and other high-demand locations.
4. Occupancy Limits: Many regions cap the maximum number of guests allowed in a short-term rental based on the property's size and number of bedrooms. Exceeding these limits can result in fines.
5. Safety and Quality Standards: Short-term rentals must meet certain safety requirements, such as having fire extinguishers, smoke detectors, and emergency contact information clearly displayed. Some regions also have quality standards for furnishings, amenities, and maintenance.
6. Insurance Requirements: While not always mandatory, it is highly recommended that short-term rental hosts have appropriate insurance coverage, including liability insurance. Some regions may require proof of insurance as part of the registration process.
7. Tax Obligations: Income from short-term rentals is subject to taxation in Spain. Hosts must declare this income and pay the applicable taxes, which may include income tax, VAT, and local tourist taxes. The specific tax treatment can vary depending on the region and the host's individual circumstances.

These nationwide rules provide a general framework for short-term rentals in Spain, but the specific details and implementation can still vary significantly between autonomous communities and even municipalities. The regulatory landscape is complex and constantly evolving as authorities seek to balance the economic benefits of tourism with the need to protect local housing markets and quality of life.

For hosts, staying informed about both the national and local requirements is crucial to operate legally and avoid potential fines or legal issues. Consulting with local experts, such as property managers or legal advisors, can help navigate this challenging environment and ensure compliance with all applicable rules and regulations.

Does Tenerife Strictly Enforce STR Rules?

Based on discussions from Airbnb hosts on Reddit and BiggerPockets, it appears that Tenerife is becoming increasingly strict about enforcing short-term rental regulations, especially compared to other popular Spanish destinations.

Many hosts report a growing sentiment of "hostility" towards vacation rentals and digital nomads in Tenerife. They feel the government is unfairly blaming them for issues like rising rents and housing shortages for locals. However, most acknowledge that some level of regulation is needed to balance tourism with residents' needs.

In the past, many hosts operated STRs in Tenerife without obtaining all necessary permits, often viewing the rules as "suggestions" that were loosely enforced. But this is changing rapidly. The Canary Islands government is proposing a new law to crack down on unlicensed rentals, with plans to enlist up to 1,300 police officers to help inspectors shut down illegal listings.

Under the draft bill, using a home for short-term tourist lodging without a Vivienda Vacacional license could lead to fines exceeding €30,000. Hosts will need to submit sworn declarations and technical reports to register their properties, and many homes, especially in residential areas, may no longer be eligible for tourist rental at all.

The general consensus among hosts on BiggerPockets and Reddit is that Tenerife is no longer as Airbnb-friendly as it used to be compared to other Spanish vacation spots. While the island once had more lax enforcement, allowing many hosts to operate in a gray area, this is coming to an end as Tenerife rolls out some of the strictest STR laws in Europe.

Unlike in the past, hosts continuing to operate unlicensed STRs in Tenerife are facing huge financial penalties. Obtaining and maintaining a tourist rental license is becoming increasingly complex and cost-prohibitive for most casual hosts.

In summary, based on the experiences shared by hosts online, Tenerife is cracking down hard on short-term rentals and can no longer be considered Airbnb-friendly, especially compared to other Spanish markets. The days of operating unlicensed vacation rentals with few consequences appear to be over as Tenerife ramps up enforcement of its strict new rules. Hosts looking to start or continue Airbnb rentals on the island will need to carefully navigate the challenging new regulatory landscape.

How to Start a Short-Term Rental Business in Tenerife

If you're considering starting a short-term rental business in Tenerife, here are the key steps to follow:

1. Research local regulations: Familiarize yourself with the specific rules and requirements for operating a short-term rental in Tenerife. This includes obtaining the necessary permits, such as the Vivienda Vacacional (VV) license, and registering with the police. Stay informed about any proposed changes to regulations, such as the draft law that could limit rentals in certain areas.
2. Choose a suitable property: Select a property that meets the legal requirements for short-term rentals in Tenerife. Ensure it is located in an area zoned for tourist rentals and has the necessary amenities to attract guests. Keep in mind that under the proposed new rules, new-build properties may be barred from the short-term rental market.
3. Obtain a Vivienda Vacacional (VV) license: Submit a sworn declaration (Declaración Responsable) affirming that your property meets all the requirements for tourist rentals. This includes providing various documents, such as proof of ownership, a habitation certificate, and a technical report from an architect.
4. Register with the police: Register your property and guests' details with the police using the Alloggiati Web portal. You'll need to provide guest information within 24 hours of check-in.
5. Comply with safety standards: Ensure your property meets all required safety standards, including having fire extinguishers, smoke alarms, and emergency contact information clearly displayed.
6. Set up your listing:Create a professional listing on popular vacation rental platforms like Airbnb and Vrbo. Include high-quality photos, detailed descriptions, and competitive pricing. Highlight any unique features or amenities that set your property apart.
7. Manage your bookings and guests: Establish a system for managing bookings, communicating with guests, and coordinating cleaning and maintenance. Consider using property management software to streamline these tasks.
8. Collect and remit taxes: Register with the tax authorities and obtain any necessary tax identification numbers. Collect the tourist tax (Impuesto sobre las Estancias Turísticas) from your guests and remit it to the government. Consult with a local tax professional to ensure compliance with all tax obligations.
9. Provide excellent customer service: Respond promptly to guest inquiries and be available to address any issues that arise during their stay. Encourage guests to leave reviews to help build your reputation and attract future bookings.
10. Stay informed and adapt: Keep up-to-date with any changes to local regulations and market trends. Be prepared to adapt your business strategy as needed to comply with new rules and remain competitive in the evolving short-term rental landscape.

By following these steps and staying informed about the specific requirements in Tenerife, you can successfully launch and operate a short-term rental business on the island. However, be aware that the regulatory environment is becoming increasingly strict, with authorities cracking down on illegal rentals and proposing new limits on the industry. It's essential to work closely with local professionals, such as lawyers and property managers, to navigate this complex and changing landscape.

Who to Contact in Tenerife about Short-Term Rental Regulations and Zoning?

If you have questions or need guidance regarding short-term rental regulations and zoning in Tenerife, there are several key government offices and associations you can contact:

1. Cabildo de Tenerife - Tourism Department:

Phone: +34 901 501 901
Email: turismo@tenerife.es
Website: www.tenerife.es

2. Canary Islands Government - Vice Ministry of Tourism:

Phone: +34 922 475 394
Email: viceconsejeriat.ctt@gobiernodecanarias.org
Website: www.gobiernodecanarias.org/turismo/

3. ASCAV (Canarian Association of Holiday Home Owners):

Phone: +34 928 354 991
Email: info@ascav.es
Website: www.ascav.es

4. FEVITUR (Spanish Federation of Holiday Home Associations):

Phone: +34 965 856 364
Email: info@fevitur.com
Website: www.fevitur.com

5. Tenerife Tourism Corporation:

Phone: +34 922 080 769
Email: info@webtenerife.co
Website: www.webtenerife.co.uk

For specific zoning and urban planning questions, it's best to contact the local town hall (ayuntamiento) where your property is located. They can provide detailed information on land use classifications, permitted activities, and any local regulations that may apply.

Some key local government contacts include:

1. Ayuntamiento de Adeje
   Phone: +34 922 756 200
   Email: info@adeje.es
   Website: www.adeje.es
2. Ayuntamiento de Arona
   Phone: +34 922 761 600
   Email: arona@arona.org
   Website: www.arona.org
3. Ayuntamiento de Puerto de la Cruz
   Phone: +34 922 378 400
   Email: sac@puertodelacruz.es
   Website: www.puertodelacruz.es
4. Ayuntamiento de Santa Cruz de Tenerife
   Phone: +34 922 606 000
   Email:sctenerifeopina@santacruzdetenerife.es
   Website: www.santacruzdetenerife.es

Remember, regulations can vary between municipalities, so it's crucial to check with the relevant local authorities for the most accurate and up-to-date information. These contacts can guide you through the process of obtaining the necessary licenses and permits, ensuring your short-term rental complies with all applicable laws and zoning requirements in Tenerife.

What Do Airbnb Hosts in Tenerife on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions from Airbnb hosts in Tenerife on Reddit and Bigger Pockets, there are mixed feelings about the local short-term rental regulations:

On the Tenerife subreddit, one host expressed frustration with the strict new rules proposed by the Canary Islands government. They feel the regulations, such as requiring a VV license and limiting rentals in certain areas, make it very difficult for casual hosts to operate legally. However, some commenters acknowledged the need to balance the economic benefits of tourism with the housing needs of local residents.

In a Bigger Pockets thread about investing in vacation rentals in Spain, a Tenerife host shared their experience navigating the complex regulatory landscape. They emphasized the importance of thoroughly researching the specific rules in each municipality, as they can vary significantly across the island. They also advised having a contingency plan, such as pivoting to long-term rentals, in case short-term rental regulations become too restrictive.

Another Bigger Pockets discussion focused on the impact of the proposed 60-day annual cap on short-term rentals in the Canary Islands. A Tenerife-based host commented that while the limit would reduce their earning potential, they understand the government's goal of preserving housing stock for locals. They suggested savvy investors could still make it work by focusing on high-demand periods and using the property for other purposes during the rest of the year.

On the AirbnbHost subreddit, a Tenerife host vented about the strict enforcement of occupancy limits and noise regulations by local authorities. They felt the rules were overly burdensome and made it challenging to meet guest expectations. Other hosts chimed in with similar complaints, but some argued that the regulations help maintain neighborhood quality of life.

Overall, while Airbnb hosts in Tenerife have concerns about the increasing regulations, there seems to be a general acceptance that some level of oversight is necessary. Many hosts appear to be searching for ways to adapt their business models to comply with the new rules while still providing great experiences for guests. The key themes are the need for clearer and more consistent regulations, and a desire to find a balance between supporting tourism and protecting local communities.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.