Imagine this: swaying palm trees, endless blue waters, and your laptop – isn’t that an idyllic workplace? Spain’s Digital Nomad Visa is making this dreamy scenario possible for remote workers across the globe. However, as the phrase goes, every coin has two sides, and the impact of this exciting shift on the Canary Islands, a popular choice among digital nomads, is worth a deeper look. While Spain’s new Digital Nomad Visa comes with potential perks, it’s essential to consider the multifaceted impacts on local communities and the environment.
Local Press and (Some) Opinions on Digital Nomadism
It is fair to say that many people are currently taking a rather dim view of the idea of yet more ‘imports’ into the Islands. In simple terms, there is a suggestion that as digital nomads flock in, there could be a surge in short-term rentals, further hiking property prices and making housing less accessible for locals.
This claim does have merit as over the past ten years, rents have spiked by an alarming 85.9% in the Canary Islands, while salaries lag with a modest 6% growth. Some suggest that the arrival of more digital nomads will create an affordability crisis for locals.
Deeper Issues connected to Digital Nomadism in Canary Islands
Although this is a real concern, and one that must be catered for, it is fair to say that the suggestion that digital nomads alone could send the Island into oblivion is at best a simplistic view.
12.3m tourists visited the islands in 2022 – The Digital Nomad Count, is around 60,000.
You must ask yourself “How does an Autonomous Community, that ranks near the top of Spain’s GRDP table, rank as the second poorest region in the country and have an ongoing housing crisis?”.
Well, let’s not forget that the Islands cover under 7500km square in total, and with a rising population the population density is high. Less land, less space, less building.
Over-tourism is also a major issue, with locals staging protests and calling for a tourist moratorium, an eco-tax, and a new residence law.
Concerns span from environmental degradation to traffic congestion and stress on local resources such as affordable housing and research reveals that short-term rentals, particularly through Airbnb, have significantly altered the local real estate market along with the continued purchases of properties by non-residents.
Unlike Digital Nomads, people who buy summer homes and those who buy properties in the Islands to rent them are not residents, and a majority are not taxpayers within Spain, but even if they are it is suggested that these homes should be used for the community and not tourism. This view, combined with the fact that most of the profits from Tourism are making their way off the Islands is causing frustration locally, again causing protests in tourist areas.
There is also a severe lack of affordable homes being built in the Islands and when you live here is striking that, despite the housing crisis, very little housing development is happening. According to ISTAC, just 3200 building permits were issued in 2022 and when you search for new housing on various property sites, the majority are expensive Villas and Apartments in the more touristic areas of the Islands.
Also, another thing that you notice when you travel the Islands over a long period is the huge levels of vacant or unfinished housing. Properties are abandoned by banks after taking possession due to mortgage debts and others remain abandoned by a combination of people simply leaving the islands or passing away with nobody to inherit them.
All these issues combined have placed a huge squeeze on the Market and locals who then rely on historically lower-paid jobs, such as (you guessed it) tourism-based roles.
So – Why are Digital Nomads ‘different’?
Now, we may be biased, but Digital Nomads under the Visa are not tourists and contribute significantly more to the economy than someone on their holidays. Digital nomads are required to be residents, pay taxes, and give back to the local community. Most of the money they earn, bring and spend is likely to stay in the local economy and does not end up in the pockets of international hotel chains and landlords.
You could argue that Digital Nomads on the VISA are the perfect kind of import for places looking to boost tax income and the local economy. They are required to meet earnings thresholds and other criteria, in order to give to the economy, not take from it.
Also, the ‘Unofficial’ Digital Nomads that come to the Islands, such as traveling EU residents, not using the VISA, are credited with staying longer and dropping over 4 times the amount of money into the local economy than someone on their vacations, with a majority of these funds going to smaller, local businesses and not international hotel chains.
Possible Canary Islands’ Government Reactions to the rise of Digital Nomadism
However, considering recent developments, it’s plausible that the local government might introduce radical countermeasures to safeguard the interests of the local population and the environment.
One idea that has been suggested for many years is that the government could institute an outright ban on Airbnb and similar platforms to curb the trend of homes being converted into short-term rentals, thus preserving the local housing supply for residents.
Many attempts have been made to legislate the market and all have, embarrassingly, failed. Attempts to tighten up rentals were made around 2018, but the legislation only covered ‘tourist areas’ and was roundly shot down, mostly as it could have led to higher prices in ‘non-tourist areas’, incredible when you think about it to propose such a half-measure. The rental issue for locals in Tenerife is not in tourist areas, it’s in urban areas such as Santa Cruz, Candalaria and the North of the Island, where a ban would be more welcome. The subject has come up again recently, just in time for the election cycle.
Another policy that could be implemented is whereby locals are given priority for rentals, with strict regulations to ensure a certain percentage of housing is made available to residents before being opened to tourism, this is probably more viable than an Airbnb ban but is again unlikely due to legal challenges by those with a vested interest in tourism and the fact that it feels unworkable.
And finally, the suggestion that the Islands could Ban non-residents from buying homes in the territory has been met with suggestions it could infringe EU Law, but there is a suggestion that the Islands could be classified differently to other EU locations, giving it a special status. However, this will only work in the long term if more homes are built in the short term.
Digital Nomads and the Canary Islands – conclusions
We think that Spain’s Digital Nomad Visa is a good thing, but there will be unseen impacts on local communities if other issues are not tackled.
Carefully crafted strategies and regulations are necessary to balance the influx of digital nomads and tourists with the well-being of locals, ensuring that the vibrancy and liveability of these beautiful islands are preserved.
Unless there is a total overhaul of regulation and actions relating to tourism, housing, corporate profits, and affordable housing then the Islands will be forever stuck in a loop with the locals feeling the pinch.
If you’re a resident of the Canary Islands, what are your thoughts about the impacts of digital nomads, tourism, or sites like Airbnb on local life? What do you think about potential countermeasures?
And if you’re a digital nomad or planning to become one, how do you see your role in these dynamics?