Since August 2024, strict, new rules have applied to holiday home rentals in the Valencia region (Costa Blanca). The introduction of the Decreto Ley 9/2024 means that rental licences are no longer transferable, have limited validity and municipalities and co-owners' associations (VMEs) have far-reaching powers to prohibit rentals.
Do you own property in the Costa Blanca or plan to buy to let? This article will tell you exactly what you need to comply with to avoid fines of up to €600,000.
What falls under 'Tourism Rental' in Costa Blanca?
In the Comunidad Valenciana, rentals are only considered as tourist rental considered when a property is offered turnkey for a period of 10 days (nights) or less, for a fee.
The temporal distinction is crucial for legal qualification:
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Holiday rentals (≤ 10 days): Falls under strict tourism legislation. You will need a rental licence, registration and permission from the municipality.
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Seasonal hire (≥ 11 days): Falls under the Urban Lettings Act (LAU). For this no tourist licence required, but you must draw up a specific lease proving its temporary nature.
Expert Insight: "Many owners are mistaken in thinking that 'short-term' is always touristy. The 10-day limit is now the hard legal dividing line. Do you rent by default per minimum two weeks? Then you fall outside the heavy licensing requirement."
New rental licence rules (2024-2025)
The "old" rules where you bought a licensed property and could immediately re-let it are definitely over. Here are the main changes from the new legislation.
1. Is the rental licence transferable on sale?
No, a rental licence has been strictly personal since August 2024. When you sell a property, the existing licence automatically expires. The new owner has to go through the entire application process all over again. This has a huge impact on the market value of "rental-ready" properties; after all, the guarantee of a new licence no longer exists.
2. How long is a licence valid?
Rental licences are no longer valid indefinitely.
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New licences: Valid for a period of 5 years. After this period, renewal is required, re-evaluating against the then applicable municipal and town planning rules.
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Existing licences: A transition period (usually 5 years) also starts for old licences, after which renewal is required.
Also listen to our podcast episode on holiday rentals in Costa Blanca.
3. The 'decay rule' in vacancy
To combat speculation, the government has introduced usage analysis.
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Will be a licensed property not let for one year? Then it will be deleted from the register.
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Don't start the rental within two months after obtaining the licence? Then you will lose the licence immediately.
Requirements: What does your property need to meet?
To obtain (or keep) a licence, you have to meet a stack of administrative and technical requirements. The municipality and the VME now play a key role in this.
Municipal consent and VME (Association of Joint Owners)
You can no longer apply for a licence without a positive report from the municipality that confirms that the property is suitable for tourism in urban terms. Municipalities may designate their own zones where rentals are prohibited or restricted (e.g. to combat nuisance).
In addition, since April 2025, the role of the VME has been decisive. If the VME does not mention anything about it, holiday letting is by definition NOT allowed. So always check the statutes and minutes of the VME before purchase.
Technical and facility requirements
Your home must meet strict comfort standards. The main obligations are:
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Air conditioning: Air conditioning (cooling) as well as heating are mandatory.
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Security: Presence of an evacuation plan and a first aid kit.
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Cadastral Reference: It must be unique and mentioned in each lease. Deadline for registration was 31 December 2024; if it is missing, you risk deletion.
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Key handover: The use of key boxes on public roads or in common areas is explicitly banned. You are required to provide a personal reception (reception service).
Statistics: According to recent data from the Generalitat Valenciana risks lapsing 15% of the current licences due to failure to provide the cadastral reference in time.
Registration requirement: SES Hospedajes and Fiscus
In addition to the licence, you have ongoing administrative obligations.
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Guest registration (SES Hospedajes): Since 2 December 2024, registration on the national platform has been SES Hospedajes mandatory. You must provide the details of each guest (over 14 years old) to the authorities within 24 hours.
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Tax liabilities: You pay tax on rental income (19% for EU residents, 24% for non-EU). This is separate from registration with the tourism department.
Penalties: Fines of up to €600,000
Inspections have been stepped up. Violations are classified as minor, serious and very serious.
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Renting out without a valid licence is considered a very serious offence.
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Not mentioning the registration number in advertisements (online or offline) is punishable.
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Fines can range from €600 to €600,000 depending on the severity of the offence.
Frequently asked questions (FAQ)
1. I bought a flat with an existing rental licence. Can I take it over? No. Since the August 2024 legislation, a rental licence in the Valencia region is strictly personal. It expires upon notarial transfer. As a new owner, you must submit a completely new application, which will be tested against the current (stricter) rules.
2. What is the difference between holiday rental and seasonal rental? The limit is 10 days. Rentals of 10 days or less are considered tourist holiday rentals (licence required). Rentals of 11 days or more are legally considered seasonal rentals (no tourist licence required, but legislation on urban rentals).
3. Can the Co-owners' Association (VME) prohibit rentals? Yes. The VME has the power to include in the articles of association that tourist rentals are prohibited, or to decide this by a vote (with a qualified majority). Indeed, if the VME does not stipulate anything, holiday rentals are not allowed anyway. You will need a certificate from the VME to apply for a new licence.
4. Am I obliged to receive guests in person? Yes, the use of key lockers (key lockers) on the facade or in common areas is prohibited. You must provide a reception service or personal key handover. Many owners outsource this to a gestor or keyholding service.
Find more common questions with answers here.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
