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New legislation is in force for tourist rentals in Valencia as well as Spain, with tightened rules, but also new opportunities for investors and second home buyers. In this blog, we tell you everything you need to know.
Disclaimer: The information in this blog is based on the details provided to us by our local real estate lawyer. We do not have any additional information beyond what is included in this blog. For specific questions, we recommend contacting your lawyer.
Update 2025: new legislation tourist rental Spain
From April 3, 2025, Spanish homeowners’ associations (HOAs) will have more authority over short-term vacation rentals in their complexes. This means that apartment owners will now need prior approval from the HOA to rent out their property to tourists for short stays (less than 11 days).
Main changes summed up:
- At least 3/5 of owners must agree
At least 3/5 of owners and 3/5 of quota rights must agree to tourist rentals.
- Not retroactive
The law does not apply retroactively: if you were renting legally before 3 April 2025, you may continue to do so.
- Higher fines
Without proper permits, you risk fines of up to €600,000, depending on the region.
- Medium-term letting remains allowed
Medium-term rentals (between 11 days and 11 months) will continue to be allowed without HOA approval.
What does this mean for you as a landlord?
Do you want to offer your property as holiday accommodation? Then it is crucial to:
- Find out whether your owner's association allows short-term rentals.
- Apply for approval in time.
- Consider alternative forms of letting, such as medium-term letting.
New law for rentals to tourists in the Valencia region
As of August 2, 2024, the new legislation will be in effect for tourist rentals in the Comunidad Valenciana, the region that includes the provinces of Alicante and Castellon, as well as, of course, the province of Valencia including Valencia City. The new law has the following guidelines:
- All rentals shorter than 11 days are considered tourist rentals
Rentals of 11 days or longer are classified as seasonal rentals and are not covered by this law.
- Tourism licenses are valid for 5 years as per new law
After that, they must be renewed again for 5 years. The renewal must be submitted to the municipality no later than one month before the end of the 5-year term, and the municipality will re-evaluate the application.
- A property may only be rented out to tourists as a whole
Renting out per room is not allowed.
- Cadastral reference on official documents and contracts
It is important to include the cadastral reference on official documents and contracts.
- A new application must be submitted in the event of a change
In case of renovation, new construction, sale, donation or inheritance, a new application for tourist rental must be submitted for the property in question.
- Combination rentals not permitted
If you have a property that you rent out to tourists, you are not allowed to rent out the property for other types of rentals, such as medium or long-term rentals.
- Rent out within 2 months
After obtaining your tourist rental license, you must start the rental within 2 months, otherwise the license will expire.
What are the legal requirements for a tourist rental property?
In addition to the above guidelines, the home itself must meet some basic characteristics as well.
- There should be an evacuation plan on the inside of the front door.
- An elevator must be provided for a building with 4 or more floors.
- Power outlet(s) in all rooms.
- Hot water supply available.
- A list of emergency and important phone numbers in a visible place.
- Cooling (at least in the living room/dining room or kitchen).
- Heating (at least in the living room/dining room or kitchen).
- Internet connection, unless the home is in an area without coverage.
- First aid kit.
- Detailed information on the nearest medical center.
- Key service. Delivery of keys through lockers on public roads is prohibited.
- A cleaning service must be used.
- Linen should be changed on a regular basis.
- Repairs and maintenance must take place on a regular basis.
What should be a minimum presence in a tourist rental property?
The home must be equipped with furniture, cutlery, kitchen utensils and linens. All bedrooms must have a closet, either inside or outside the room. The home must have internet connection and a television except in areas without coverage.
The kitchen must include at least:
- Refrigerator
- Iron
- Oven/microwave
- Extractor
- Minimum 2-burner electric cooktop (homes for up to 4 people*).
*For homes that accommodate more than 5 people, the kitchen must have at least a 3-burner electric stove.
Fines for non-compliance
The new law institutes fines for failure to follow the new law, ranging from €10,000 to €600,000, depending on the severity of the offense. Fines can be imposed for failure to correctly state the exact location and registration details of the property in advertisements, failure to report property transfers, or illegally offering tourist rental rooms.
Existing tourist rental licenses
The new law is in effect as of August 2, 2024. There are three types of transitional arrangements for existing rental licenses:
- For properties licensed before July 1, 2018: These may keep their license without adjustments.
- For homes licensed between July 7, 2018 and introduction of new law: These may keep their license, but must meet new requirements within five years and renew their approval before 2030.
- For new homes after the new law is introduced: These must meet the new rules immediately and renew their approval and other paperwork every five years.
Why this new law for tourist rental?
The new law aims to balance tourism with livability for local residents. Tourism figures reached record numbers in 2023 and 2024. With this law, they want to make sure that tourist rentals are done in an organized way so that it remains balanced with other types of tourist accommodations. This ensures a sustainable and quality supply.
In addition, the law helps combat unfair competition from people who rent out their homes illegally. These illegal rentals harm the regulated tourism industry and escape government control. It also leads to black money circulation and can cause conflicts with local residents. The law protects the compliant tourism industry, thereby countering unfair competition.
Rental for 11 days or more
The above guidelines belong to the new law introduced for the entire autonomous region of Comunidad Valenciana. Here they refer to tourist rentals for anything 10 days or shorter. This obviously opens up opportunities for medium-term rentals, which is now from 11 days to 11 months. No specific license is needed for this. The same of course applies to long-term rentals from 11 months. So ideal if you want to invest in a house in Valencia.
Do you have more questions on this subject, or do you have another question or want advice on what in this market is now interesting as an investment and/or rental? Feel free to contact us.
