Last Updated on 14th February 2025
The Canaries have long been one of the most popular holiday destinations throughout the European Union. They offer incredible weather, pristine beaches, volcanic landscapes, and a relaxed atmosphere, with activities ranging from exploring Timanfaya National Park in Lanzarote to relaxing on Maspalomas Beach in Gran Canaria.
Expatriates have also caught onto the unique appeal of the islands, often in preference to mainland Spain, whether they are looking for lower tax burdens, more affordable property prices, or the island lifestyle.
Unfortunately, the ever-growing influx of international visitors has put a strain on the island’s resources, accommodation capacity, and infrastructure. Protests last summer attracted thousands of residents demanding action.
Here we look at why some Canary Islands residents want to see stricter caps, explore the issues related to the cost of living, and examine the impacts of taxation when tourist numbers rise above those the islands can sustain.
Challenges and Issues Around Over-Tourism and Demand in the Canary Islands
Spain is the world’s second-most visited country, second only to France, with an estimated 83.7 million tourist arrivals in 2024. However, its economy is also more dependent on the tourism industry, and it receives a higher number of visitors per capita than anywhere else.
A difficulty for the government is that the numbers are undeniably high—15.5 million tourists travelled to the Canary Islands last year, an island region with a population of just 2.24 million. However, tourism also makes up around 35% of the archipelago’s GDP and was worth around €22 billion to the economy, making it key to the Canaries’ economic interests.
The protests last year stemmed from years of pressure. Residents claim that infrastructure like roads and public transport are becoming unviable, that gradual tax hikes to maintain resources used by tourists are unfair, and that unwanted behaviour, the commercialisation of cultural and historic sites, and a lack of availability within local housing markets are all related to tourism.
While efforts to control tourism have been made, and the Canary Islands introduced a ban on new construction projects in tourist areas in 2001 to manage developments, residents are now calling for enforceable limitations on arrival numbers.
Many are also citing the increases in living costs. Data from the Spanish National Statistics Institute show that 22.8% of people living in the Canaries are at risk of poverty, the highest in any Spanish region aside from Andalucia.
The Canarias tiene un límite – the Canaries have a limit – action was supported by some charities and organisations with similar but separate concerns about the effects of crowded beaches, parks and green spaces on ecosystems and rare native seabirds that live or migrate to and from the islands.
Proposals and Reforms to Manage Tourism in the Canaries
As a result of this long-sustained debate, the Canary Islands government has considered various measures to tackle housing shortages and limit the strain on local economies, although, as yet, these stop short of introducing the visitor cap that protestors have asked for.
Some of the many changes either confirmed or in consultation by The Canary Islands Department of Tourism and Employment include:
- Reforms to the regulations applied to holiday lets include dropping the minimum living space requirement to 25 square metres and removing several requirements regarding paved access roads and energy efficiency criteria.
- Changes that give localised municipalities greater control over how they regulate holiday rentals – with autonomy over levies, surcharges or restrictions on the proportion of homes that can be used for tourism rentals in each area.
- Stricter rules about the usage of newly built residential properties, which will be required to act as a genuine residence for 10 years from completion, without being permitted for use as Airbnb style apartments.
- New regulations about the use of existing residential homes and converting them into holiday lets, with options for properties currently used as unauthorised holiday lets to either become compliant, change into a long-term residential let, or face enforcement action.
Individual towns and attractions are also introducing tourist taxes this year to raise revenues to support their maintenance and upkeep and ensure that local residents aren’t expected to finance these costs.
The town of Mogán, Gran Canaria, is launching a €0.15 tax per person per night this year, the first to be introduced at the municipal level. Sites like Roque Nublo and Mount Tiede are also considering a tourist tax, which would not apply to residents living in Gran Canaria or Tenerife who wish to visit.
The Impacts of Canaries Tourism on International Expatriates
The biggest side effects of tourism for those intending to relocate to the Canary Islands or already living in the archipelago are associated with the cost of renting or buying a property, especially in key tourist areas. They also affect living costs, where a larger proportion of businesses, such as shops, restaurants and travel providers, gear their services, and pricing, towards a more affluent visitor demographic.
However, there are hopes that the attention gained through protest action and the initial steps taken to manage tourism and its financial impacts on local economies will help reverse these pressure points and free up more homes for families and residents that were previously used as unapproved holiday lets.
Overall, the Canary Islands remain a tax-efficient and relatively low-cost destination for retirees, families, and professionals who choose to move overseas. Despite the complaints about the steadily increasing cost of living, utilities and housing remain more affordable than on the mainland.
Likewise, the lower sales tax, or VAT rate in the Canaries, called the IGIC, and the presence of the Zona Especial Canaria (ZEC) or Canary Special Zone, which offers lower tax rates and incentives for businesses, make the islands an attractive destination with clear tax advantages over other locations in Spain.
The hope is that reforms will calm tensions, but expatriates planning a move may need to remain conscious of the potential for new tax levies to be imposed on international visitors, and fluctuations in living costs and housing availability that could impact their plans.
Our previous guide to The Cost of Living in the Canary Islands provides further information and pointers to help with personal budgeting and forecasting. You are also welcome to contact our local Chase Buchanan team in Tenerife for more tailored advice.
*Information correct as at February 2025