Canary Islands: Tenant Disclosures, EPC & Info

Before advertising a residential rental property in the Canary Islands, landlords must comply with specific documentary and disclosure requirements mandated by both state and regional authorities. Governed primarily by the Spanish Urban Leases Act (LAU), effective 1 January 1995, along with recent updates from Law 12/2023 on the Right to Housing and Royal Decree 390/2021, landlords are legally obligated to provide clear, upfront information to prospective tenants to ensure market transparency and consumer protection.

1. The Energy Performance Certificate (EPC)

Under Royal Decree 390/2021, every property owner in the Canary Islands must obtain an Energy Performance Certificate (EPC) before offering a property for rent. This certificate must be registered with the regional Registry of the Canary Islands.

• Every real estate advertisement or web listing must display the energy efficiency rating label (ranging from A to G).
• Listing a property with the excuse that the EPC is "in process" is not legally compliant and can result in significant fines from consumer protection entities, ranging from €300 to €6,000.
• A reliable copy of the certificate and its official registry document must be annexed to the lease agreement and delivered to the tenant upon handing over the keys.

2. Prior Information on Rent and Property Conditions

In accordance with Law 12/2023 on the Right to Housing, landlords must expose clear and transparent property and lease information to any formal candidate during the preliminary visit to the rental property:

1. Rent Breakdown: Clearly clarifying to the prospect how much of the monthly payment constitutes the base rent versus any community of owners fees or other imputable expenses.
2. Property Title: A declaration of the landlord's title (e.g., full owner or legal usufructuary).
3. Cadastral Reference: Exhibition of the official cadastral document or reference number of the residential property.

3. Prohibition of Agency Fees for Residential Tenants

Law 12/2023 introduced a strict prohibition against charging real estate agency fees to residential tenants.

For leases intended as a habitual, fixed residence, the tenant does not pay any pre-commission, intermediary fees, or VAT to the real estate agency or API.

The landlord or property investor who utilizes real estate agency services to lease their property is legally obligated to absorb all real estate commission costs. Only commercial (B2B) leases or strictly temporary/seasonal leases (contratos de temporada) remain exempt from this rule, allowing agency fees to be negotiated differently in those non-habitual contexts.

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