Canaries: landlords can no longer pass IBI tax to tenants

What changes for the IBI property tax?

The most important change concerns the Impuesto sobre Bienes Inmuebles, or IBI for short. This is the Spanish property tax that every municipality levies on real estate.

Until now, the rental contract could stipulate that the tenant pays this tax in addition to the monthly rent. Real Decreto-ley 29/2026 amends Article 20 of the Spanish tenancy act, the LAU.

In new contracts, the landlord may not impose housing-related taxes on the tenant if the tenant is not the taxpayer themselves. Since the owner is usually the taxpayer for the IBI, they can no longer pass the property tax on to the tenant.

The rule applies to all residential tenancies that fall under the new provision. It therefore also affects residents and long-term renters on Gran Canaria, Tenerife, Lanzarote, Fuerteventura, La Palma, La Gomera and El Hierro.

What applies to existing rental contracts?

The decree came into force on 8 October 2026. However, it does not automatically invalidate all clauses in older contracts.

If the landlord makes a demand, tenants should ask for a copy of the municipal assessment and check the contract clause that transfers the IBI to them.

Who pays the rubbish fee in the Canary Islands?

The rubbish fee, in Spanish tasa de basura, follows different rules from the IBI. There is no single Canary Islands regulation.

The user of the waste collection service is often considered the person liable for the fee. The owner can act before the municipality as a substitute taxpayer and subsequently pass the fee on.

Whether the tenant bears the rubbish fee depends on the local bylaw of the relevant Ayuntamiento. This is the municipal authority that sets the tasa de basura by means of an ordenanza fiscal.

The amount of the fee is not stated in the available sources. It is therefore not possible to give reliable euro figures for the Canary Islands.

What applies in strained housing markets?

Additional restrictions apply in officially designated zonas de mercado residencial tensionado. These are areas with a particularly strained housing market.

There, in a new contract, certain fees, taxes or other costs may not be transferred to the tenant for the first time if they were not included in the previous contract.

The rule is intended to prevent landlords in these areas from shifting additional costs onto tenants. The sources do not show whether individual Canary Islands municipalities are designated as strained.

What should tenants and landlords do now?

Tenants should check whether a new contract contains an IBI clause. Under the new legal position, such a clause is generally no longer permitted.

For the rubbish fee, both sides must check the ordenanza fiscal of the relevant Ayuntamiento. The bylaw determines who is liable for the fee vis-à-vis the municipality.

Landlords should treat the IBI and the rubbish fee separately in the contract. A blanket statement that the landlord always pays everything is not supported for the rubbish fee.

Agency and contract signing costs may not be imposed on the tenant. The new rule also makes this clear.

What remains open?

The full text of Real Decreto-ley 29/2026 in the Spanish official state gazette, the BOE, is not directly linked in the available sources.

The parliamentary confirmation of the decree also remains open. Likewise, there is no overview of the rubbish fee bylaws of all Canary Islands municipalities.

For a specific case, the date of the rental contract, the type of tenancy and the current municipal rubbish fee bylaw are decisive. The sources do not mention any special Canary Islands deadline or application procedure.