Tenerife Plans Limiting Property Sales to Non-Residents

The Canary Islands government, together with the Federation of Municipalities (Fecam), has revealed plans to give local councils more power over the property market. The move is aimed at protecting residents in places like Tenerife South, where the cost of housing has risen sharply in recent years.

Rising Demand in Tenerife South

Tenerife South has long been a favourite destination for international buyers. Holiday homes, investment properties, and the popularity of short-term rentals have all increased demand. As a result, prices have climbed, leaving many local families struggling to find affordable housing.

What the New Rules Could Mean

The proposal includes changes to Spain’s Local Government Act, which would give municipalities greater control over real estate, tourism, and local taxes. A draft of the reform will first be prepared and then debated at both national and regional levels before reaching parliament.

Regional president Fernando Clavijo confirmed that the Canary Islands are also in discussions with the European Union about setting limits on property purchases by non-residents. The aim is to slow down speculative buying and ease pressure on the housing market in Tenerife South and across the islands.

Inspired by Other European Cities

Similar rules already exist in places such as Berlin, Hamburg, and Amsterdam, where authorities have stronger tools to control rising prices. The Canary Islands are now looking to apply these lessons to protect their own communities.

Stronger Local Powers for a Fair Market

According to Mari Brito, head of Fecam, councils need more influence over urban planning, taxation, and tourism if they are to tackle housing problems effectively. In Tenerife South, this could mean tighter restrictions on holiday rentals and more investment in affordable housing projects.

Public Pressure for Change

Protests over high rents and property prices have become more common on islands like Lanzarote and Tenerife South. Many locals argue that tourism-driven demand and platforms such as Airbnb have made it almost impossible to rent or buy at a reasonable cost. The proposed law is designed to give councils real power to respond to these concerns.

Looking Ahead for Tenerife

If the reforms go ahead, they could help restore balance in the housing market of Tenerife South. Residents may benefit from greater access to affordable homes, while investors may face new rules when buying property.

Although change won’t happen overnight, the Canary Islands government is taking clear steps to make sure housing remains accessible for the people who live and work here all year round.