Rental rules and permits on the Costa Blanca North, what about it?

The rental rules and permits on the Costa Blanca North, is investing still interesting? Is there big money to be made? Since August 2024, new rules have been in force for renting out properties on the Costa Blanca, specifically in the Comunidad Valenciana region. These changes have important consequences for homeowners who want to rent out their property to tourists or for longer periods of time to, for example, winter visitors. The regulations in the Netherlands completely changed, Spain seemed like a gold mine. But is it? We give you insight into the main changes in the rental regulations and offer insight into the different rental options. The options are tourist rental with license, classic rental and seasonal rental. In addition, we discuss the advantages and disadvantages of each of these options. So is it interesting after all? So can your Spanish dream begin after all?

1. Tourist rental with license

Tourist rentals have been a popular choice for homeowners on the Costa Blanca in recent years. You see the red signs on the facade everywhere. AirBnB and Micazu is full of our Dutch cottages. It offers the opportunity to generate income year-round by signing short-term rental contracts with vacationers. However, to rent out a property as tourist accommodation, a permit is required. This is issued by the Generalitat Valenciana and requires that the property meet requirements for hygiene, comfort and safety. Since the August legislative changes, the following important changes have been made:

New rules for tourist rentals:

• Renew permit every five years: Homeowners must now renew their rental permit every five years. This involves reapplying for a municipal certificate confirming that the property meets the requirements and that tourist rentals are still allowed in the area.
• Ban on key boxes: Key boxes in public places or in common areas of apartment complexes are no longer allowed. Landlords must receive tenants personally upon arrival. So again, it should be more personal. A host who gives you some explanation and is there in case of emergencies.
• Maximum rental period of 10 days: Tourist rentals may not exceed 10 days at a time, and there are restrictions to prevent circumvention of this rule with multiple short bookings for the same tenant.
• New permit after sale: When a property with tourism permit is sold, the new owner cannot easily take over the permit. Previously, you could easily take over the permit on the property and be assured of the permit. The permit must be reapplied for in its entirety. This can be problematic in areas where tourist rentals are no longer allowed.

What should your apartment or house meet?

• Evacuation Plan: A clear evacuation plan must be affixed to the inside of the front door.
• Elevator: An elevator is mandatory in buildings with four or more floors. (Important many old buildings do not have an elevator)
• Power outlets: All rooms must contain at least one electrical outlet.
• Hot water supply: Hot water must be available in the home.
• Emergency numbers: A list of emergency and important phone numbers should be in a visible place. Someone must be available 24/7.
• Cooling and heating: Cooling is mandatory in the living room, dining room or kitchen. Heating is mandatory in the living room, dining room or kitchen.
• Internet Connection: An Internet connection is required except in areas without coverage.
• First aid kit: A well-equipped first aid kit must be available.
• Medical Information: Detailed information on the nearest medical center must be provided.
• Key service: The use of key lockers on public roads is prohibited.
• Cleaning service: A professional cleaning service should be used.
• Linen: Regular linen change is mandatory.
• Maintenance: Regular repairs and maintenance of the home should be performed.
• House equipment: The house must be equipped with furniture, cutlery, kitchen utensils and linens. All bedrooms must have a closet, either inside or outside the room. The home must have internet connection and a television, except in areas without coverage. The kitchen must include at least: – Refrigerator, iron, Oven/microwave, range hood, – Minimum 2-burner electric stove up to 4 people and houses of 5 people or more at least a 3-burner electric stove. Please note, gas is not allowed for rentals.

Benefits of tourist rentals:

• High yields due to frequent rentals.
• Possibility to use the property yourself outside the rental periods.

Disadvantages of tourist rentals:

• Mandatory permit subject to more stringent requirements.
• Regular change of tenants requires more management.
• Possibility of municipalities not renewing the permit after 5 years.

2. Classic rental

Traditional rentals involve renting the home for a longer period of time, usually between 1 and 8 years, to tenants who stay in the home permanently. This is a stable option for homeowners who are less interested in short-term rentals.

Benefits of classic rentals:

• No rental license required.
• Stable and predictable income over a longer period of time.
• Less management of changing tenants and cleaning.
• Tax advantages for landlords over tourist rentals.

Disadvantages of classic rentals:

• Leases can last up to five years, where the tenant cannot be evicted outright, even for non-payment.
• The landlord does not have access to the property during the rental period.
• Classic rentals usually generate less income than tourist rentals.

3. Seasonal Rental

Seasonal rentals offer homeowners an intermediate option, where the home can be rented out for a freely agreed upon period, such as several months. This is attractive to people who want to use the property themselves outside of rental periods.

Benefits of seasonal rentals:

• Flexibility: the property can be used by the owner when not rented out.
• No permit required.
• Less management than tourist rentals, such as weekly cleaning or reception of tenants.
• Seasonal rentals can provide good income, depending on location and demand.

Disadvantages of seasonal rentals:

• The property may not be advertised on tourist platforms such as Airbnb or Micazu or Booking.com.
• Lower yields than tourist rentals.
• The property cannot be simultaneously under the tourist and seasonal rental regime.

Update:

The new rules, caused panic. But after consultation with legal experts and the Tourism Department of the Comunidad Valenciana, it has been confirmed that combination rentals – alternately renting a property to tourists and long-term tenants – are still possible. But you have to follow the following guidelines:

How does combination rental work?

You may use your property for both tourist rentals and long-term rentals, but there are a few things to consider:

1. Tourist rental (short stay)
   • Tourist rental periods may last a maximum of 10 days per tenant.
   • This rental must be registered in the Tourist Registry of the Comunidad Valenciana.
2. Long-term rental (stay longer than 10 days)
   • If you choose a long-term lease outside of tourist periods, you must report it to the Tourist Registry.
   • During a tourist period, you may not enter into long-term leases without proper notification.
3. Flexibility with a reporting requirement
   • Are you switching rental forms? Make sure you report this change correctly in the registry. This prevents problems and preserves your license.

What does this mean for you as a landlord?

This new arrangement offers a lot of freedom. As a landlord, you can adapt your strategy to the season and market demand. Tourist rentals in the summer months and long-term rentals in the winter? It’s possible! But be sure to properly communicate all changes to avoid penalties.

Combine smartly, rent optimally

Alternating between short-term and long-term rentals offers opportunities to maximize your income and make the most of your property. By adhering to the rules and reporting changes neatly, you can respond flexibly to demand from both tourists and tenants. You can rent out your apartment or house for a week in the summer and for winter visitors in the winter.

Update April 2025

April 2025 update – New rental rules in Spain

As of April 3, 2025, the rules for vacation rentals in Spain have been further tightened. The main change? Regional governments will have greater powers to refuse or revoke permits.

• VvE’s permission required: Before a property may be rented out to tourists, prior approval from the Owners’ Association (VvE) is required. A majority of 60% of the owners and 60% of the quota rights must agree. Previously, 60% had to vote against.
• Central registration system: From January 2025, all short-term rental properties must have a mandatory registration number, which must be visible on platforms such as Airbnb and Booking.com.
• Ban on per-room rentals: It is no longer allowed to rent out individual rooms to tourists; only entire houses may be offered.
• No retroactivity: If you already had a tourism permit before April 3, 2025, and you comply with existing regulations, you may continue to rent without a new permit.
• These are so-called “Tourist rentals. Medium-term rentals continue to be allowed without a permit and are not covered by the new regulations and are still possible without VvE approval. The interpretation of tourist and medium-term rentals may vary by region. For example, in the region of Valencia, tourist rentals are all rentals shorter than 11 days, in the region of Murcia, all rentals shorter than 30 days are considered touristy

Some municipalities, including those on the Costa Blanca North, have already indicated that they will enforce more actively and select more strictly on new applications.

Conclusion

The new regulations on the Costa Blanca North present both challenges and opportunities for homeowners wishing to rent out their property. The choice of tourist rental, classic rental or seasonal rental depends on personal preferences and objectives. Tourist rentals often offer higher income but require more management and meet stricter requirements. Classic and seasonal rentals offer more stability and less management, but with potentially lower income.

Everything is still very uncertain. Because these regulations would mean that one can no longer book a vacation of two or three weeks? Many bookings will already stand. Lawyers are busy objecting to this. How that turns out? When we know we will share.

Regardless of which option you choose, it is essential to understand local regulations well and have a clear strategy. Determine your strategy well in advance. What are the nicest places to buy a house? Where do you want to vacation yourself? We can help you determine the strategy.

Want to know more about the rental options on the Costa Blanca North or have specific questions about the new rules? If so, feel free to contact our team for personal advice!

P.S. always check with the attorney about the latest regulations. The rules change so quickly and are sometimes a bit unclear.