The party was to be held on Los Patos, a nudist beach, in the municipality of La Orotava, in the north of the island, according to website Las Provincias.
The beach is currently closed due to the threat of landslides.
Police were alerted to news of the party after it was shared on Twitter and discovered over people camping out on the beach in preparation for the illegal party.
According to Canarias7, the Civil Guard and local police cleared Los Patos beach, where they found 62 people camping and managed to shutdown the party.
Talking to Canarias7, the authorities said that police “intercepted a meeting on the beach with the aim of spreading Covid-19 in an area with prohibited access”.
Police say they are taking this very seriously, particularly after Spain has recorded a high spike in Covid-19 cases during the first two weeks of August and is now has the highest total number of cases in western Europe.