Spain’s Supreme Court has struck down the government’s planned national register for holiday rental properties, handing a major boost to the Canary Islands Government as it continues regulating the sector locally.
The ruling cancels the so-called Single Register for Short-Term Rentals, introduced under Royal Decree 1312/2024, after judges concluded that the Spanish Government had overstepped its powers by imposing a nationwide system that duplicated regional controls already in place.
Canary Islands position strengthened
The case was originally brought by the Valencian regional government, but the decision has direct implications for the Canary Islands, which had also challenged the decree on the grounds that tourism regulation falls under regional authority.
The Supreme Court agreed that the State cannot create a fully centralised registration system for holiday lets when autonomous communities already regulate the activity themselves.
For the Canary Islands Government, the ruling represents an important legal and political victory at a time when holiday rentals remain one of the region’s most controversial issues, particularly regarding housing shortages, rising rents and pressure on residential neighbourhoods.
What changes — and what stays
The court’s decision does not cancel the entire decree. Spain’s Digital Single Window system for holiday rentals will remain in place, as will obligations requiring online platforms to share rental data with authorities for statistical and monitoring purposes.
However, the State can no longer force property owners across Spain to comply with one single national registration system as the central mechanism for regulating holiday rentals.
Instead, regional governments such as the Canary Islands will continue using their own systems based on tourism licences, declarations of responsibility and local oversight.
Housing concerns remain central
In its ruling, the Supreme Court acknowledged growing concern over the impact of short-term holiday lets on Spain’s housing market, particularly the reduction of long-term rental properties and increasing prices for residents.
But judges stressed that these concerns do not give the central government the right to override regional tourism powers.
Ongoing debate in the Canaries
The holiday rental sector remains under intense scrutiny in the Canary Islands, where local authorities continue working on stricter regulations aimed at balancing tourism with access to housing for residents.
While the final legal framework may still evolve following the court’s decision, the ruling clearly gives the Canary Islands greater control over how holiday rentals are managed across the archipelago.
