Spain’s 2025 Short-Term Rental Reform: A Textbook Guide for Investors and Owners

What every property owner, buyer, and investor must know — and how the law impacts the Costa del Sol & Costa Blanca differently

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1. The Legal Framework: What Has Changed Nationally

Key national changes

• As of 3 April 2025, the national law Organic Law 1/2025 (of 2 January) amended the Ley de Propiedad Horizontal (LPH) so that new tourist uses (i.e., short-term rentals of entire furnished homes) in multi-owner buildings now require express approval from the community of owners (comunidad de propietarios). 

• The amendment adds Article 7.3 to the LPH: “The owner of each dwelling who wishes to carry out the activity referred to in letter e) of Law 29/1994 (Urban Leases Act) as regulated by the tourism regulations, must first obtain express authorisation of the Community of Owners, in accordance with section 12 of Article 17."

• The majority required: a favourable vote of three-fifths (3/5) of the owners, who must also represent three-fifths of the ownership quotas (participación) in the community. 

• Communities can also impose special higher common fees (up to +20 %) on units used for tourist rentals to cover extra wear and tear in common areas. 

• The law is not fully retroactive for properties already legally operating under tourist-rental licences before 3 April 2025. They may continue under prior conditions, but transfers of ownership or new licences may trigger the new rules. 

• Registration regimes and other compliance steps: Though the community-approval rule is the headline, owners still must comply with regional and municipal tourism/licensing laws, and platforms listing short-term rentals must ensure correct registration numbers appear.

Why the law was introduced

• There has been pressure to protect housing availability for long-term residents and to give communities greater control over tourist accommodation. 

• The supply of short-term rentals has been seen as contributing to housing scarcity and noise/turnover issues in residential buildings, especially in popular coastal zones.

Summary checklist for compliance

Before you list a property for short-term rental in a building with a community of owners:

1. Request the community minutes showing a vote authorising tourist use (3/5 owners + 3/5 quotas).

2. Confirm your property has or can obtain the required tourist licence / registration number with the regional tourism authority.

3. Verify your building’s statutes (estatutos) and whether any prior prohibition exists.

4. Update the listing to include the official registration number.

5. Be aware of any decision by the community to apply higher fees or specific conditions for units used as tourist rentals.

6. If purchasing for investment, include a clause in the contract making the purchase conditional on community approval and licensing.

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2. Impact and Specifics on the Costa del Sol

The Costa del Sol (Andalusia region) is among Spain’s most mature tourist-rental markets and the new rules have specific implications here:

Local/regional context

• The region of Andalusia continues to enforce its existing tourism accommodation statutes (e.g., Decree 28/2016 for tourist homes). Owners must comply with both the national reform and regional requirements.

• In municipalities such as those along the Costa del Sol, local governments have frozen new tourist-rental licencesin certain zones where the proportion of holiday lets is high. This adds another layer of risk.

Practical implications for owners and investors

• If you own (or intend to buy) an apartment in Marbella, Fuengirola, or Torremolinos that is part of a community of owners, you must check if the community has already approved tourist rentals. Without such approval your property may be unusable for short-term letting despite market demand.

• Properties already licensed before 3 April 2025 may continue—but if you transfer ownership or apply for a new licence you may be treated under the new regime.

• Because the market is competitive and licensing stricter, compliant properties (those with community approval, licence, registration) may gain a premium or enjoy lower competition.

• Investors must consider mid-term or long-term rentals (e.g., 6-11 months) as alternatives when short-term is blocked by community or zoning restrictions.

Key questions for due diligence

• Ask for the minutes of the general meeting (junta de propietarios) in the building that show the vote on tourist rentals.

• Check the status of the tourist-rental licence (Vivienda de Uso Turístico – VUT / VFT depending on region) and whether it is transferable with ownership.

• Verify whether the community has raised common charges for units used for tourist rentals (up to +20 %).

• Confirm the building’s statutes (estatutos) do not include a prohibition or restriction on tourist use that cannot be overruled.

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3. Impact and Specifics on the Costa Blanca

The Costa Blanca (province of Alicante and parts of Valencia region) has a slightly different profile and some different risks:

Local/regional context

• The Valencian Community and Alicante province have their own licensing regimes for tourist accommodations. As with Andalusia, the national reform now overlays on top of those regional laws.

• Some municipalities in the Costa Blanca have been slower to impose large-scale licensing freezes compared to the Costa del Sol, which may give slightly more flexibility in the short term.

• However, the community-approval requirement remains mandatory for properties in a community of owners from 3 April 2025 onward. 

Practical implications for owners and investors

• When buying a property with the intention of short-term rental in the Costa Blanca, you may find that zoning or municipal licensing is still favourable—provided the community of owners approves rentals.

• Because competition may be less intense than in the ultra-high-demand zones of the Costa del Sol, there could be opportunities to secure properties with tourist rental potential—but the key remains community approval and proper licensing.

• If a community votes against tourist rentals (which is more likely in buildings where owners are full-time residents rather than holiday-renters), you may need to shift strategy, e.g., to seasonal rentals (3-11 months) or permanent lettings.

Key questions for due diligence

• Request the community meeting minutes and verify whether the community has formally authorised tourist use.

• Confirm the property’s registration number for tourist use under the Valencian/Alicante regime and check transferability.

• Verify local municipal policies: some towns may have moratoria or stricter rules developing.

• Assess the building’s occupant profile: more full-time residents may lead to stronger opposition to short-term rentals and thus a higher risk of future community vote prohibiting them.

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4. Risk Assessment & Strategic Recommendations

Risks

• If the community does not approve tourist use, your property may be limited to long-term or seasonal rental, which may reduce income potential compared to short-term letting.

• Licensing delays or denial: even with community approval, regional or municipal authorities might delay or restrict new tourist-rental licences in saturated areas.

• Transfer issues: Buying a property with a licence doesn’t always guarantee continuity if ownership changes and the community vote wasn’t updated.

• Increasing costs: Communities can impose higher charges for tourist-use units; local authorities may increase fines or add stricter zoning.

• Market shift: A reduction in supply of short-term holiday lettings could alter projected rental yields.

Strategic recommendations

• Include rental-licence and community-approval checks in purchase contracts. Make your offer conditional on receiving documented evidence of both.

• For portfolios or large investments, favour properties in buildings where tourist use is already approved and documented, and registration/licence is in place.

• Consider alternatives: seasonal rentals (3-11 months) or hybrid models (owner use + long-term let) may become more attractive.

• Work with a bilingual lawyer familiar with both Andalusian and Valencian/Alicante regulations.

• Monitor evolving regulations: The national law sets a baseline, but municipal and regional rules continue to change.

• Communicate with the community of owners: introducing a tourist-use proposal at a meeting and obtaining approval proactively reduces risk of later conflict.

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5. Outlook and What This Means for the Market

• The reforms give more power to communities of owners; the “default assumption” of tourist letting is no longer valid in multi-owner buildings.

• In both the Costa del Sol and Costa Blanca, properties that are fully compliant (licenced, registered, community-approved) may gain a competitive edge, potentially improved yields and resale value.

• For new buyers, the importance of due diligence has never been greater—market demand is still strong, but legal barriers are higher.

• For buildings and developments, there may be shifts away from mixed holiday-resident blocks towards properties where short-term letting is either prohibited or tightly controlled.

• The balance between tourism and housing availability is a political priority; expect further local interventions (tax changes, caps, zoning shifts).

• Opportunities remain strong, especially for those who adapt their strategy and align with the legal environment rather than ignore it.

6. Comparison Table: Costa del Sol vs. Costa Blanca 

7. Tourist apartments on the Costa Blanca and Murcia: a different model to consider

We must throw in a little curveball here into our analysis, and that is the category of tourist apartments which exists in both Alicante (Costa Blanca) and the Murcia region. These are purpose built property developments that are suitable for short term rentals, often the complexes are managed by a property management company which will take a share of the rental income while the rest is paid out to the property owner. 

In Alicante the law allows for the owner to use their apartment for a maximum of four months each calendar year, often there are limits on how many weeks one can use the apartments in peak holiday season (July-August). The law in Murcia is more flexible and gives the owner more power to decide over the use of their apartment, with some complexes even allowing owners to live permanently. 

There is also a difference in the development when you look at the ROI, some developments guarantee a fixed ROI to buyers, often in return for them allowing the property to be rented out throughout the whole year. Others will allow the owner to choose their own property management company or even to manage the rentals themselves if they wish. 

At present, these are a selection of the tourist rental developments that we have for sale: 

Oasis Laguna. El Raso (Costa Blanca)

Oasis Laguna, located in El Raso on the Costa Blanca, an expansive and beautiful area that looks onto the saltlakes just inland from Guardamar and its sandy beaches. The apartments are priced competitively and will be fully managed by a property management company that will manage the whole complex. Predicted returns can be provided on request. See the development here. 

Belich apartments. Los Alcazares (Murcia)

These apartments are located in the sunny coastal town of Los Alcazares in Murcia region, they are made up of three bedrooms and two bathrooms and all have large terraces, many of which enjoy sea views. The developer has simulated an impressive 11% yield on the apartments. There are only a handful left and they are key ready so interested investors should contact us. Find information about the development here.

Higuericas Beach. Torre de la Horadada (Costa Blanca) 

This development is located just a couple of hundred metres from the stunning Las Higuericas beach in Torre de la Horadada on the Costa Blanca. The large apartments are made up of three bedrooms and two bathrooms and, as you can imagine, almost all of them have beautiful sea views. The developer guarantees a net pre-tax yield of €25,000 on the apartments. The complex includes lovely pool areas, gardens, a playground, gym and even a spa area. For more information, click here. 

Santa Rosalia Tourist Apartments (Murcia)

If you haven't heard of it already, Santa Rosalia is one of the most ambitious and breathtaking macrodevelopments in Spain this decade. It is a resort built around a huge artificial lake at its centre with stunning villas and apartment blocks providing modern, Mediterranean living with a location that puts you just a few minutes' drive from the sea and traditional beach towns such as San Javier and San Pedro del Pinatar. This development is made up of apartments and has great communal facilities. For more information, see here. 

Conclusion

The 2025 reform to the Horizontal Property Law marks a turning point for short-term rentals in Spain. It raises the bar for compliance, shifts power to homeowner communities and makes due diligence essential.
On the Costa del Sol and Costa Blanca, the market remains attractive—but the rules of the game have changed.

For property owners, investors and buyers the message is clear: check the licences, obtain the approvals, understand the community stance and adapt your strategy accordingly. Doing so will not only protect your investment but may also position you ahead of the curve. As ever, your Spanish property advisors Portfolio Deluxe are always here to help with any real estate related enquiry.