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Is Your Spanish Holiday Home Now Illegal to Rent?

07 Apr
2025
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Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

Spain’s New Tourist Rental Regulations: What Foreign Property Owners Need to Know

April 2025 marks a turning point for tourist rentals in Spain with sweeping regulatory changes that affect millions of foreign property owners.

Spain has implemented significant changes to its tourist rental regulations, creating a dual regulatory framework that significantly impacts how properties can be offered for short-term stays. With approximately 2.5 million properties owned by foreigners in Spain—representing about 10% of all properties in the country—understanding these new rules is essential for anyone with real estate interests in Spain. Foreign ownership is mainly concentrated in tourist-heavy regions like Valencia (where foreigners own nearly 30% of properties in some municipalities), the Balearic Islands (20-25% foreign ownership), the Canary Islands, Andalusia’s Costa del Sol, and parts of Catalonia.

New Community Authorization Requirement in Effect

As of April 3, 2025, property owners in Spain must obtain explicit authorization from their homeowners’ association (comunidades de vecinos) to legally offer tourist rentals in residential buildings. This modification to the Law of Horizontal Property (LPH) represents a fundamental power shift, giving local communities greater control over tourism in their buildings.

“This modification empowers residents and has been developed in collaboration with local municipalities and autonomous communities,” explained Isabel Rodríguez, Spain’s Minister of Housing and Urban Agenda. The law aims to provide residents with greater decision-making capacity regarding regulating these rentals, which have generated intense debate in major Spanish cities due to their impact on community living and housing access.

The approval process requires a three-fifths (60%) majority vote of the total number of property owners and the total ownership quotas in the community. This ensures that decisions have broad support and aren’t made unilaterally.

However, properties legally operating before April 3 with proper tourism licenses are grandfathered in and may continue renting without obtaining new community authorization, provided they don’t change their activity.

Aerial view of an expansive cityscape in Spain, where a prominent cathedral rises amidst densely packed buildings and lush greenery, captured during sunset. This vibrant scene is popular among travelers seeking temporary rentals and exploring local holiday rental regulations.

Barcelona City in Spain seems to rise from the air, showing the impressive architecture and block systems of the apartments and offices in the busy Spanish metropolis.

National Registry System Coming in July

Complementing the community authorization requirement, Spain established a unified national registry system for short-term rentals. This “Ventanilla Única Digital de Arrendamientos” (Digital Register for Rentals) creates a centralized platform fully operational in July 2025, though property owners can already begin the registration process.

The system was established by Royal Decree 1312/2024, which went into effect on January 2, 2025. Spain is the first EU country to implement the European regulation requiring member states to create an information system for short-term rentals.

 

The registration process requires property owners to:

  1. Access the digital system through the College of Registrars
  2. Complete a detailed form with property information
  3. Submit required documentation, including:
    • Property title
    • Energy efficiency certificate
    • Tourist license specific to the relevant autonomous community
    • Details about maximum guests and rental type

As of March 2025, authorities reported more than 18,000 registration applications nationwide, of which 49% were approved, 41% were under evaluation, and 11% were rejected.

Colorful mosaic tiles on a curved bench overlook gingerbread-like buildings and a cityscape in Park Güell, Barcelona, under a clear blue sky—a perfect spot to ponder the ins and outs of Temporary rentals in Spain.

Beautiful Unique Architecture of Park Guell. Amazing Tourist Attraction. Sightseeing. Excursion. Traveling to Barcelona. Spain.

Tourist rental platform Responsibilities and Enforcement

Online booking platforms like Airbnb, Booking.com, and Rentalia now face strict requirements to verify that listings include valid registration numbers. Platforms must ensure that advertisements published on their sites include the corresponding registration number.

Platforms must also periodically report rental activity data to authorities, and non-compliant listings must be removed. This collaborative approach between government and technology companies aims to create a more transparent marketplace for tourists and property owners.

Spanish Regional Variations and Specific Requirements

While the national framework establishes basic requirements, Spain’s autonomous communities maintain significant regulatory authority over tourist rentals, resulting in varying rules and penalties across regions.

Maximum Fines by Region

Non-compliance penalties vary dramatically by location:

  • País Vasco: up to €100,000
  • Andalucía: up to €150,000
  • Madrid and Canarias: up to €300,000
  • Baleares: up to €400,000
  • Cataluña and Comunidad Valenciana: up to €600,000

Specific Regional Requirements

Some regions have implemented detailed specifications for rental properties. For example, on the Costa del Sol, requirements include:

  • Maximum 4 people permitted per bedroom
  • Mattresses must be at least 18cm thick
  • Kitchens must have specific equipment, including two cooking plates, an oven, a microwave, a coffee machine, a blender, and toaster.
  • Properties accommodating more than five guests require at least two bathrooms.
  • Properties with more than eight guests require at least three bathrooms

These are part of the increasing regulation of tourist apartments across Spain.

Where are foreigners buying in spain? Infograhic

Foreigners have been active in the Spanish real estate markets for many years. Here is one of our previous infographics on the subject (current statistics remain very close).

Impact on Foreign Property Owners in Spain

The changes significantly affect foreign property owners, many of whom purchase Spanish real estate as a personal vacation home and a rental investment. With foreigners owning approximately 2.5 million properties across Spain, the impact of these regulations is far-reaching, especially in coastal regions and tourist hotspots, where foreign ownership can reach up to 30% of all properties.

Market surveys indicate that approximately 40-50% of foreign owners rent their properties for part of the year, with most offering rentals for 6-8 weeks annually (17.8%) or 18-20 weeks (12.3%).

At HowtobuyinSpain.com, we think it is essential for our customers to know all the details of their real estate purchase. While many real estate agents and rental agencies tend to minimize the challenges of renting property in Spain to attract investors, we believe in full transparency. We want our clients to enter the Spanish property market with open eyes, understanding the opportunities and potential difficulties. In our view, foreign buyers should primarily invest in Spanish property for their enjoyment rather than solely for financial returns, and we’re committed to providing all the information needed to make an informed decision.

The regulatory changes are already influencing behavior, with recent surveys showing that approximately 14% of foreign owners are considering stopping their rental activities or switching to a different rental model not covered by the new regulations.

 

Short-term rentals regulation in Spain video

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Advice for Current and Future Property Owners in Spain

As Spain’s regulatory landscape evolves, market experts anticipate that three main profiles of foreign property buyers will emerge:

Advice for Current and Future Property Owners in Spain

As Spain’s regulatory landscape evolves, market experts anticipate that three main profiles of foreign property buyers will emerge:

1. Spanish Holiday Home Owners

The most sustainable option in the new regulatory environment is purchasing primarily for personal use.

Don’t count on rental income to cover your mortgage; with community authorization requirements, buying primarily for enjoyment provides the most certainty.

This approach avoids the complications of seeking community approval and navigating complex rental regulations altogether. For these buyers, location can be selected based entirely on personal preference rather than rental potential.

2. Long-Term Rental Investors in Spain

Investors focused on traditional long-term rentals (typically annual contracts) will face fewer hurdles, as these arrangements aren’t subject to the exact community authorization requirements as tourist rentals.

Long-term rentals offer more stability and less regulatory complexity. This investment approach aligns better with residential communities resistant to tourist rentals.

For this profile, urban locations and areas with year-round resident demand may offer better opportunities than seasonal tourist destinations.

3. Niche Temporary & Tourist Rental Owners

This smaller category will only be viable under specific conditions:

  • Standalone villas: Properties not subject to community voting requirements
  • Purpose-built tourist complexes: Where all owners share an interest in allowing rentals
  • Existing high-concentration tourist buildings: “Properties in buildings already dominated by tourist rentals will find it easier to obtain the necessary three-fifths majority,” advises Cocquyt.
  • Regions with favorable regulations: Consider locations like Calpe, Marbella, or Tenerife, which maintain tourism throughout the year

Industry observers expect other rental arrangements to become increasingly tricky as community associations exercise their new authority to restrict tourist rentals.

We believe communities with high percentages of permanent residents or retirees are unlikely to approve new tourist rental operations.

Regardless of which profile fits your objectives, staying informed about continuously evolving local regulations remains essential.

Gran Vía street view in Madrid, featuring the Metropolis Building with its ornate dome under a clear blue sky; a perfect spot to admire while considering temporary rentals in Spain for your next getaway.

MADRID: The Gran Via in Madrid marked its 100 year history in 2010 and is the city’s main commercial streets with a length of 1,316 meters. Gran Via on July 12, 2012 in Madrid, Spain.

Why do we get those rental regulation changes in Spain today?

These regulatory changes reflect Spain’s efforts to address several challenges related to the growth of short-term rentals:

  • Rising housing costs for residents due to tourist rental pressure
  • Quality of life issues for permanent residents (noise, excessive tourist traffic)
  • Pressure from the hotel sector arguing against unfair competition
  • Recent protests against mass tourism in cities like Barcelona
  • Not enough supply of housing (fewer developers than in 2008, and banks are less aggressive to support the sector in general)

As Spain balances its vital tourism industry with the needs of local communities, these regulations represent a significant shift toward greater oversight and community control in the tourist rental market.

For the millions of foreign property owners who rent their Spanish properties, adapting to these changes will be essential for continued legal operation in Spain’s evolving real estate landscape.

 

With our team of more than +100 local real estate partners, HowtobuyinSpain helps foreigners to buy real estate in Spain.

The experts from our network are active in all the fields you need:

  1. Property finders
  2. B&B
  3. Spanish property lawyers
  4. Spanish tax advisors
  5. Architects
  6. Money Transfer
  7. Mortgage
  8. Holiday rental management
  9. Ensure your Spanish property
  10. Property survey
  11. Renovation

 

 

Are you looking for a property lawyer in Spain? Follow the link and get one of our local lawyers. Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Contact one of our 100+ local partners!

 

Stéphane, Senior analyst and strategist at HTBIS

Stéphane, with over 20 years of experience in real estate, finance, and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector, strong analytical skills, and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge-sharing to master any subject.

Check the entire HTBIS team here

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