There are three ways of renting out Gran Canaria property;
Short-term tourist rentals
This is perfectly legal if your property is on land classified as residential (everywhere except the tourist resorts). In resort areas, it is more complicated as you have to have a tourist license or rent it out via a central management company.
Until recently you needed a Tourist Rental License to do this and only certain properties were eligible (rural houses, villas, etc). However, the law has now changed and any residential property can now be rented to tourists on a short-term basis (anything under three months).
You do not need the permission of the Comunidad to rent out a private apartment (although a Comunidad can vote to ban all touristic rentals in a building or complex) and you don’t need a plaque or license. All you have to do is pay tax on the income you receive and advertise it honestlyRates vary depending on location on
Rates vary depending on location and property specifications. Cleaning costs are often added as a one-off extra charge for tenants.
NOTE: Please speak to a quality estate agent before buying a rental investment property in Gran Canaria’s resorts. The law for resort properties is currently in flux and you need expert advice.
Long-term residential rentals
Renting out property in Gran Canaria is fairly easy. You can either do it privately by advertising in the local papers or on websites like Segundamano and FotoCasa, or by advertising it via an estate agent. Agencies traditionally charge the tenant one month’s rent, but some are now asking the property owner to pay this fee, or to split it with their new tenant.
Most owners ask for a month’s rent as a deposit and return it once the tenant has left, minus any costs for repairs (reasonable wear and tear cannot by law be deducted from the deposit).
One advantage of renting via an agent is that they handle the contract, but you can download example contracts.
If you are a non-resident, some agencies will manage your property (they arrange for plumbers if there’s a problem, etc) for a monthly fee of around €50.
Renting out Gran Canaria property the middle way
Many owners take a middle road between touristic rentals and residential lets by renting their property to people who spend several months a year living in Gran Canaria. They are often retired Brits and Scandinavians escaping the winter back home (known as snowbirds) but digital nomads are also flocking to Gran Canaria.
The benefits of renting to snowbirds are that you can charge more per month than for a residential let and don’t have to handle frequent keys and cleaning.
To advertise your property to snowbirds, post it on websites like AirBnB and specify a long minimum stay.
Renting and taxes
Non-resident property owners pay 24% income tax on rental income of all types while residents have to pay income tax. Residents pay income tax.
Most non-residents use a local Gestoria to handle their tax and paperwork.