Important Changes to Tourist and Short-Term Rental Properties in Spain
Spain has been battling a housing crisis for a long time. After months of protests across the country, government ministers proposed new measures to a full cabinet last week (16th October 2024) in a bid to free up more long-term accommodation for younger renters.
It comes as no surprise that Spain is a popular tourist destination. Whether by the beach or in one of the amazing cities, tourists go to the country all year long for a bit of sunshine and to enjoy the culture. But with this, comes expensive, short-term and tourist accommodation that’s leaving locals struggling to find affordable housing.
The government has decided to address this issue by regulating tourist and short-term rentals (more than a month and less than a year) to ensure that properties and their owners comply with existing laws and regulations which, up until now, have been largely overlooked.
So, Why Exactly Is There a Housing Crisis in Spain?
Several factors have contributed to Spain’s housing crisis. Two important ones are the lack of affordable social housing and that mortgage payments or rent tend to be a much higher proportion of a household’s income than in other EU countries. In fact, it’s so difficult that 60% of 18-34-year-olds have to live at home as wages don’t stretch to cover rent.
Another big one is the seasonality aspect of Spain’s economy. It’s not uncommon, especially in popular areas such as Barcelona, Malaga and the Costa del Sol, for landlords to rent out property from October to May for a set price, and increase the rent dramatically over summer. This either leaves people unable to afford to live somewhere long-term or paying well over the norm for the same property.
Similarly, renting out on platforms such as Airbnb and Booking means landlords can charge much more per night than they’d receive renting long-term to a local. There’s more monetary incentive to rent out property, either short term or to tourists, than there is long term. This means there are fewer long-term rentals in the market for locals and the ones that are available are much more expensive. This has led to nationwide protests in recent months.
The New Plans for Tourist and Short-Term Rental Properties in Spain
If you want to legally rent your property in Spain, you need a tourist licence. However, various sources suggest that up to 90% of properties that should have a tourist licence actually don’t. This, naturally, has led to unregulated renting at unregulated prices.
Isabel Rodríguez, the Minister for Housing and Urban Agenda, informed government ministers last week about the ruling to regulate tourist and short-term rentals all over the country.
Landlords who want to advertise renting their properties online for short periods of time will have to register the property on a single register. Each property will then get an identification number. Landlords will need this number if they want to market the property on an online platform such as Airbnb, Booking, Idealista, or any other form of short-term rental platform.
What Will The Registration Process Entail?
In order to register the property and receive the code, property owners will need to provide several pieces of documentation, including proof of ownership and proof of compliance, both locally and regionally. They’ll have to send these to the central electronic office of the Colegio de Registradores. Landlords will also have to openly communicate with the register and answer any requests for information. They’ll have to provide online platforms, such as Airbnb and Booking, with the identification number assigned to them by the register for real estate.
Another big difference is that these online platforms will be required to ensure that properties on their website have an identification code and it will need to be displayed on their advertisements. It won’t just be the responsibility of the landlord, which is the case now with tourist licences.
Through the registration, authorities will then be able to know what portion of the property can be rented (entire or just a room), the type of rental agreement, how many people can stay there and whether or not the property has a tourist licence. This, therefore, will prevent illegal short-term and tourist rents that are driving up prices.
The land registry will also be able to certify that the residents’ association has approved the property and it is allowed to be rented out to tourists. If the apartment block as a whole decides to ban tourist rentals, then you won’t be able to get a registration code.
How Long Is the Registration Number Valid?
If you receive a registration number, it's valid for 12 months. After one year, you’ll need to apply for it to be renewed. In order to do that, you’ll have to provide a list of the different types of leases that occurred in the last year, for example, if it was longer term, short-term, or tourist if you have a licence.
You’ll also need to provide a legal declaration if you did rent the property out short term. This is called a ‘declaración responsable’. In this statement, you’ll be asked to justify why the rentals were short-term, for example, if someone was working, for an academic year, or if they were receiving medical treatment.
When Will The New Plans Come Into Effect?
The changes will begin in January 2025. However, it’s important to note that there will be a voluntary test phase for a couple of months. During this time, landlords can register their property and receive the code without it being mandatory. The exact date when it becomes a legal requirement is yet to be determined, but it’s thought that it will be towards the end of 2025.
What Happens if You Don’t Register Your Property?
If you want to rent your property to tourists on a short-term basis and advertise the property on an online platform, you’ll need to register it. If you don’t, you’ll likely get a fine from the local council, regional authorities or consumer law enforcement.
What Else Is The Government Doing to Help The Crisis?
In the same address last week, ministers also approved the renewal of the Bono Alquiler Joven grant scheme. Younger renters will receive 250€ per month for the first two years of renting to go towards the costs of living outside the family home. While this seems like a good incentive, it was met by some resistance from the left political parties. They believe that landlords will be aware of this grant, know that renters have extra money and put the rental prices up accordingly.
So, How Are These Changes Going to Affect You?
If you have a tourist licence, then only a couple of things will change with the new laws. You’ll need to apply to the register for your identification code and renew it every year, but that’s about it.
Those who rent out property short-term, so for more than a month and less than a year, will also need to apply for a registration code and justify the short-term rentals.
Landlords who have been renting to tourists without a tourist licence will need to get one if their property qualifies. In many cities, however, such as Barcelona, Madrid, Alicante and Valencia, very few – if any – licences are being given out. In this case, landlords will need to start renting out short or long-term.
Overall, these changes are being implemented to try and regulate the increasing rental prices for locals due to tourist and short-term rentals. Those with property in Spain can still rent it out, they just need to make sure to register it first.