If you run a bar or restaurant in the Canary Islands, the terrace is probably your greatest asset. But it’s also the most regulated space. Knowing the regulations helps you avoid penalties and get the most out of it.

General regulatory framework

Hospitality terrace regulation in the Canary Islands combines three levels:

Regional legislation: Land Planning Law and public entertainment legislation
Municipal ordinances: each town hall regulates public space occupation, awnings, and structures
Horizontal Property Law: if the premises are in a residential building

Terrace license

To install a terrace in public space (sidewalk, square) you need:

Public space occupation license: granted by the town hall, with an annual fee
Awning/pergola installation authorization: usually included in the license but may require a technical annex
Civil liability insurance: mandatory, covers possible third-party damage

Pergolas and awnings on hospitality terraces

Most Canarian municipalities allow pergolas and awnings on hospitality terraces as long as:

They are demountable (no foundations)
They don’t exceed maximum height (generally 3-3.5 meters)
Open sides don’t encroach on pedestrian passage
Color and design harmonize with the surroundings (especially in historic centers)

2026 updates: heat law

In 2026, regulations protecting workers from extreme heat have been strengthened. Hospitality terraces must have adequate shaded areas and, in cases of extreme temperatures, allow workers cooling breaks. A bioclimatic pergola helps you comply with these regulations fully.

Common fines (and how to avoid them)

Infraction	Estimated penalty
Occupying more space than authorized	€300 - 3,000
Installing awning/pergola without permission	€500 - 5,000
Not complying with terrace closing time	€200 - 2,000
Not having liability insurance	€600 - 6,000

At Pergolas Canarias we know Canarian regulations well and advise you so your installation meets all legal requirements.