Important changes to the law on tourist rentals in Spain. Update
Do you want to rent out your property on the Iberian Peninsula? Good idea — it can be a great source of income. But first, you need to understand the legal regulations that apply to the local rental market.
What you will find in the article:
The grey area is already history
Rental income is subject to taxation, currently at a rate of 19%. Property owners are not required to register as a business; they can rent out their property as private individuals. You can deduct rental-related expenses (e.g. community fees and utilities) from the 19% income tax — proportionally to the time the property was rented. The private rental market in Spain has become a massive business, although until recently it operated in a legal grey area, turning into a kind of El Dorado for investors — especially those not too keen on paying taxes. A few years ago, the fact that someone was making money from rentals was nearly impossible to detect, especially if the owner was a foreigner and not a Spanish tax resident (i.e. not spending more than 180 days a year in Spain and not paying income tax there).
The authorities decided to eliminate this grey area and regulate the holiday rental market. There were several reasons: apart from the obvious one — taxation — there was also a desire to control tourist flows, primarily for public safety. For example, terrorist organizations could easily use short-term rentals, since guests were not officially registered. The new regulations introduced a requirement to register guests — just like in hotels. Besides tax and security reasons, another motive behind the legal reform was the need to reduce the number of tourists coming to Spanish cities during the peak season.
Authorization requires 60% approval from the community of owners
Law No. 1/2025, which came into force on April 3, 2025, introduced major changes to short-term tourist rentals. Property owners who want to offer their property for short-term rental must first obtain explicit approval from the homeowners’ association (comunidad). Owners must submit a formal request for a meeting and include on the agenda a vote to authorize short-term tourist rentals. A majority of at least 3/5 of the votes is required. Without this explicit authorization, renting out your property to tourists is not allowed.
What about existing tourist licenses?
Owners who already held valid tourist licenses before April 3, 2025, do not need to obtain additional authorization. However, if the property is sold, the new owner must apply for a new license. It is no longer possible to simply change the name on an existing license.
What else changed on April 3, 2025?
The new law also allows homeowners’ associations to increase community fees for properties used for tourist rentals. The increase can be up to 20%.
Important change coming July 1, 2025
Property owners who already have a tourist license (VFT number) and rent out through platforms like Airbnb or Booking — i.e., platforms that handle payments — will be required to complete an additional formality starting July 1, 2025.
Spain is aligning its legislation with a new EU directive that mandates the registration of rental properties in a centralized European system. The goal of this system is to improve transparency in the short-term rental market and reduce the risk of fraud.
The property owner will need to register their property through an official platform, providing documentation and the tourist license number. The platform will then issue a unique registration number, which will be required to continue listing the property on platforms like Airbnb, Booking, and any others that manage transactions.
The aim is to protect local housing and reduce pressure on the housing market resulting from the sharp increase in short-term rentals (from 144,000 to 368,000 apartments in 2021-2024).
Final Note
Before deciding to purchase property in Spain with the intention of short-term rental, make sure to check the stance of the homeowners’ association on tourist rentals — because now, the process of applying for a tourist license starts with their approval.