Holiday-let owners in the Canary Islands have been caught in a new regulatory dispute after Spain's competition watchdog questioned whether they should have to complete two separate administrative procedures to operate their properties legally.

The National Markets and Competition Commission (CNMC) has concluded that requiring holiday-let operators to submit an additional prior notification relating to a classified activity can amount to an unnecessary administrative burden.

The issue is particularly important for thousands of existing holiday-let owners navigating the Canary Islands' new regulatory framework, including British and Irish property owners.

However, owners should not interpret the CNMC's intervention as meaning they can immediately ignore the existing Canary Islands requirements.

The Canary Islands Government has responded by insisting that the regional holiday-let legislation remains fully in force and that affected owners must continue complying with the procedures and deadlines that currently apply.

What has the CNMC actually said?

At the centre of the dispute is the administrative process required to operate a property as tourist accommodation.

The CNMC examined a complaint concerning a requirement for owners to make a prior communication to their local council relating to classified activity, in addition to the responsible declaration used for the tourist-accommodation activity.

The watchdog concluded that demanding this additional procedure represents an unnecessary administrative burden and breaches the simplification principle contained in Spain's Law guaranteeing market unity.

It is not simply a complaint from a holiday-let association or an interpretation from property owners: it is the conclusion of Spain's independent competition and market regulator.

The case was identified as UM/045/26.

The CNMC published its position on 31st July, but the issue has now moved firmly back into the spotlight following renewed reporting and a direct response from the Canary Islands Government.

Canary Islands Government says law remains in force

The regional Tourism Department has moved to clarify the position because of concern that owners could interpret the CNMC report as overturning the Canary Islands' holiday-let legislation.

It says that is not what has happened.

The Government maintains that Law 6/2025 on the Sustainable Regulation of the Tourist Use of Homes remains in force.

It also argues that the regulatory system created by the law is supported by national market-unity legislation, including the responsible declaration and the deadlines established for operating legally.

That creates an important distinction for property owners.

The CNMC has challenged the additional administrative requirement, but it has not struck down the Canary Islands holiday-let law.

Nor does its report, by itself, amount to a court judgment cancelling the requirement.

What should existing VV owners do?

For existing holiday lets falling within the relevant provisions of the legislation, the Canary Islands Government says the deadline to submit the prior communication concerning classified activity remains 31st July 2027.

That date has not been cancelled by the CNMC report.

Owners should therefore be extremely cautious about claims suggesting that the additional paperwork can simply be ignored.

Until the legal or administrative position changes, the safest interpretation is that affected owners should continue working to the requirements and deadlines currently set by the Canary Islands authorities, while taking professional advice where necessary.

The disagreement could nevertheless become important because it raises a fundamental question about whether owners are being required to complete an administrative procedure that Spain's competition regulator believes should not be necessary.

Another complication for holiday-let owners

The latest disagreement adds another layer to what has already become a complicated regulatory landscape for holiday lets across the islands.

Law 6/2025 introduced a substantially different framework for the sector, affecting existing operators as well as people considering entering the holiday-rental market.

For British owners in particular, understanding the distinction between what the CNMC has challenged and what the law currently requires is essential.

For now, the key message is straightforward:

The CNMC has challenged the additional requirement, but the Canary Islands Government says the law and its current deadlines remain in force.

Unless that position changes through legislation, administrative action or the courts, affected owners should not assume that the CNMC report has removed their existing obligations.