Are you considering purchasing a property in Spain and interested in learning how you can rent out your apartment or villa in Costa del Sol for additional income? You are not alone! Renting to tourists is a popular option for property owners to generate extra revenue. However, before taking the leap, it is wise to ask yourself a few questions before deciding to rent out in Spain.

Please note: This blog only discusses the new regulations for renting in the Costa del Sol. Each region in Spain has its own rental rules, and below you can find information about the regulations that have been in effect in Andalusia since February 22, 2024.

If you are planning to rent out a property to tourists in Spain, it is important to be aware of the recent changes in regulations for tourist rentals. These regulations, which will come into effect from August 2024, bring about some significant changes, such as stricter licensing requirements and increased responsibilities for owners.

What is tourist rental?

Tourist rental refers to the act of renting out your property to vacationers for a limited period of time, ranging from a few days to a few weeks.

In order to rent a property in Spain, a rental license is required. This license is necessary when renting out a property, including basic services such as receiving guests, providing bedding and towels, pool maintenance, and cleaning at the beginning and end of the rental period, for a fee and for a period of less than two months.

You do not require a rental license when only family members or friends are staying for free.

1. Basic rules for renting on the Costa del Sol

If you are planning to rent out your property to tourists on the Costa del Sol, there are a few basic requirements that you need to consider.

1. Ensure that your property has a First Occupation License (LPO). This is a certificate from the municipality that proves the property meets all requirements in the building permit and is suitable for occupancy.
2. Verify if your property complies with all local regulations and laws regarding tourist rentals. In other words, are you allowed to rent out your property for tourism in the municipality or neighborhood where you are purchasing the apartment?
3. Consult the deed of division to determine if economic activities such as rentals are permitted. The Higher Court in Spain confirmed in November 2023 that renting is considered an economic activity.
4. Obtain permission from the Association of (Co-)Owners (VME or VVE) to rent out the property.

2. What are the requirements for the apartment or villa?

Your apartment or villa must meet certain minimum standards in order to legally rent it out to tourists on the Costa del Sol. These standards include things like safety, hygiene, and basic comfort. (Read more about the energy label (EPC) in Spain here) It is also important to ensure that your property is equipped with all necessary amenities, such as bedding, towels, and kitchen utensils.

It is important to ensure that your guests have everything they need. However, determining what those things are can be challenging. For instance, having a toaster is necessary as every Spaniard begins their morning with a "tostada con tomate."

3. What is the required size in square meters for the bathrooms?

As per the updated regulations (February 22, 2024), it is required to have a minimum area of 14m2 per guest and the total area must not be less than 25 m2.

If you are renting out your property for four people, your property must be at least 4 x 14m² in size. Additionally, the minimum number of bathrooms has been set to two for an apartment or house for more than five people, and at least three bathrooms for more than eight people.

4. Is heating and/or cooling necessary?

Indeed, it can get quite hot during the summer in Costa del Sol. That is why having air conditioning has been a requirement now during the months of May, June, July, and August. Similarly, during the winter, it is mandatory to have heating during the months of December, January, February, and March.

5. Is the municipality allowed to refuse a rental license?

It is within the municipality's rights to reject a rental license if you do not meet all the requirements and regulations. Therefore, it is crucial to ensure that your property complies with all local laws and regulations before applying for a license. Furthermore, the municipality may also refuse a license if there are already too many properties being rented to tourists. This could create long-term pressure on rental properties for local residents. To prevent this, the government may implement measures such as limiting licenses, imposing conditions, or even rejecting licenses.

6. Is it possible for a co-ownership association to deny a rental license?

Certain Associations of Owners (AoOs) have already established regulations prohibiting short-term rentals. However, if you purchase an existing property and there is already a rental license, it's possible to take it over. After the purchase, the license will be registered under your name. It is always wise to check the rules of your Association of Owners before proceeding with the purchase.

7. When do I have to comply with the new rental rules?

There are different transitional measures depending on the adjustment made:

1. You have a period of 1 year to make any adjustments to the cooling and heating system.
2. In order to provide the correct number of guests and bathrooms to the Registro de Turismo de Andalucia, you have a deadline of 6 months.

If you hire a company to manage your rentals, they are responsible for complying with all rules, operations, and communication. Make sure to have a contract with the rental company.

8. Rental Advice

If renting out is important to you, carefully consider what you are buying and thoroughly check the owners' association. Also check the basic deed (which determines, among other things, the layout of the apartment building and your share).

We recommend to always apply for a rental license, even if you are not considering renting at the moment. This is because if the homeowners' association eventually decides that renting is not allowed (3/5th of the votes), this decision will not apply retroactively. Therefore, "what's yours is yours" in this case. And if you decide to sell later on, the rental license will then become an added advantage.

Checklist for rental properties on the Costa (rules since February 22, 2024)

1. A house must have a certificate of conformity ('occupational license').
2. You should have at least 14m² of space per person. The total area cannot be smaller than 25m².
3. In a bedroom, no more than 4 people are allowed to sleep.
4. Your mattresses must be at least 18cm thick and meet the following minimum dimensions: 1 person mattress 80 x 190cm and for 2 people 135 x 190cm.
5. Adequate ventilation (directly to the outside or patio) in the bedrooms, kitchen, and bathrooms, with windows that can be darkened.
6. Furniture and appliances must be suitable for the number of allowed guests.
7. You may provide a sofa bed in the living room for a maximum of 2 people (counts towards the total allowed guests).
8. Minimum of two bathrooms for more than five people, three bathrooms for more than eight people.
9. Air conditioning in the living room and bedrooms during the summer months: May, June, July, and August.
10. Heating during the winter months: December, January, February, March.
11. Minimum of two stovetops, oven, microwave, refrigerator, coffee maker, mixer, toaster, and kitchen utensils.
12. Provide information about the surrounding area for guests.
13. Visible complaint form and manuals for electrical appliances.
14. Adequate bedding, detergent, and spare set.
15. Emergency number for guests in case of problems.
16. First aid kit, fire extinguisher, and smoke detectors in the kitchen.
17. Information about the internal regulations of the building (e.g. what is allowed at the pool and what are the opening hours of the pool).
18. Proof of payment in advance.
19. Check-in from 3:00 PM and check-out at 11:00 AM.

Note:
The above list includes the most relevant and important rules that most of our buyers, who rent individual apartments or villas, must comply with. Please read the complete law carefully.

Click here for the complete legislation