Spain’s New Tourist Rental Law Triggers Legal Battles in 2025

Recent reforms to Spain’s short-term rental regulations have sparked major resistance, especially from regional governments like Andalusia and property industry associations. The controversy centers on a new Royal Decree rolled out by Madrid, which aims to bring 53,000 currently licensed holiday rentals under tighter national control and registration, while giving building communities new powers to restrict or ban tourist lets.

Regional Autonomy vs. Central Control

The biggest point of contention is whether Madrid’s government can override regional authority over tourist rental licensing, which traditionally belongs to autonomous communities such as Andalusia, Murcia, and Catalonia. Critics argue the national “Digital Single Registry” unfairly brands many properties as illegal simply because of technical glitches and inconsistent registration numbers, even when the homes already hold valid regional licences. Property owners and associations are challenging the new Royal Decree in court, warning that sudden mass cancellations or sanctions create legal limbo for thousands of families and threaten rural economies dependent on tourism.

Economic Impact and British Second Homes

In resilient tourist hotspots like Malaga, Sevilla, Cadiz and Granada, short-term rentals sustain thousands of jobs and help local families make ends meet. Owners—many of them British or other EU nationals—often depend on renting out holiday homes when not in Spain, especially post-Brexit. Restrictions that force these homes off rental platforms can lead to vacant properties, higher risk of burglary or squatters, and fewer options for visitors, while doing little to address Spain’s deeper housing shortage—largely caused by low construction rates, not tourist rentals.

What’s New in 2025?

• National Registration & Digital Portal: All rental property owners must register their homes in a central nationwide database, securing a unique ID number to legally advertise on platforms like Airbnb and Booking.com. Registration and compliance checks now take place via Spain’s new Digital One-Stop Shop.
• Stricter Community of Owners Rules: Since April 2025, communities (HOAs) can vote by 60% majority to restrict or ban tourist rentals within apartment blocks. New applicants must gain formal neighbor approval. Existing licences, if valid before April 2025, usually remain protected unless regional law changes.
• Regional Differences: Local rules for amenities, safety, and visible licence display remain in force. Country homes in some regions are exempt from national registry if already registered locally.
• Major Penalties: Fines for illegal tourist lets now reach up to €600,000. Communities can demand up to 20% higher shared fees for tourist apartments to cover increased wear and disturbance.
• Seasonal vs. Tourist Lets: The new law clarifies the difference between short “holiday rentals” (less than 11 days—tightly regulated), and longer “seasonal lets” of up to 11 months, which require less community approval. Owners pursuing seasonal lets (for digital nomads, long-stay guests, etc.) are less restricted.
• Legal Uncertainty: The Royal Decree is being challenged in several courts across Spain. The final outcome may yet change these rules, so owners should watch for further legal developments and regional updates before making decisions.

Bottom Line for Owners and Expats

The landscape for tourist rentals and holiday home ownership in Spain is changing fast. Whether you’re a local family, British expat, or professional host, registering your rental, securing community support, and staying up to date with both national and regional regulations are now essential. For background, see our guide on renting out your property in Spain and advice on declaring rental income. The outcome of ongoing legal battles will shape the next chapter of Spain’s prized holiday rental sector—watch this space.

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