The impact of proposed new Spanish laws on holiday rentals in Marbella
The Spanish government, as in many other countries, has been under pressure to manage a housing situation that has been allowed to get out of control over the past two decades, during which properties previously used as primary housing by mostly local residents have been snatched up in huge numbers by mostly foreign private investors and funds – to be used as an economic asset (Airbnb-style holiday rental apartments).
This has taken hundreds of thousands of downtown and seaside properties out of the available housing stock for ‘normal’ people, creating a speculative price hike that has put housing out of reach of local citizens and migrant or seasonal workers. It is now almost impossible for many working individuals and families to afford renting or buying a property in most of Spain’s larger cities and coastal zones, creating an economic problem as it is now increasingly difficult to attract workers to such areas because they simply cannot find affordable housing.
After decades of government neglect, the problem is now viral, but the Spanish government’s solution has been to make an about face and suddenly appear to put an abrupt end to foreigners in particular buying properties to let out, or indeed even to use as holiday homes. This has a distinctly populist tone, and with no majority in parliament for Prime Minister Sánchez’s left-leaning coalition, the whole thing is regarded as an empty and indeed opportunistic series of remarks made to look like dealing with a problem while knowing full well that it is very unlikely to come to fruition.
Indeed, well over 20% of the Spanish economy comes from tourism and the selling of properties to foreign buyers, and they in turn represent a large part of the foreign investment flowing into the country, so Sánchez would be hurting the nation’s interests if he were to actually embark upon the policies he has hinted at. Something will have to be done to address the cost of properties and lack of affordable housing, but banning foreigners from buying or imposing 100% stamp duties on them doesn’t solve the problem yet damages the economy.
While there the scaremongering by the central government is therefore likely to have little real effect, regional and municipal authorities have taken measures to restrict people creating Air BnB holiday rentals. Here are some of the measures used:
- Regulation of Short-Term Rentals: A new decree requires property owners offering short-term rentals to register their properties through a ‘Ventanilla Única Digital¡ (Digital Single Window). This system aims to monitor and regulate holiday accommodations, ensuring compliance with housing standards and prioritising long-term residential rentals over short-term ones.
Local Initiatives on the Costa del Sol:
- Málaga: Effective from January 2025, Málaga has banned the registration of new holiday homes in 43 districts where tourist accommodations exceed 8% of family housing. This measure addresses housing shortages and the rising cost of living due to tourism saturation.
- Fuengirola: The town has cancelled 600 tourist accommodation licenses for properties lacking a separate building entrance for guests. Additionally, owners of tourist flats are now subject to the same tax rates as hotels.
These developments reflect a broader trend across Spain to regulate the holiday rental market, striving for a sustainable tourism model that safeguards local communities and ensures equitable housing access. It will eventually gather momentum and make it far more difficult for owners of second homes in Spain to rent their properties out, especially on a private, individual basis.
One of the best solutions is for homeowners to put the rental management of their properties in the hands of professional companies with the expertise and resources that come from being dedicated to this sector. They will also be able to advise on the best legal and fiscal structure for earning good returns on your property through rental income, and this could include establishing a business structure.
For homeowners in apartment complexes, it is worth noting that such properties can be worth up to 20-40% more in resale with a tourist license that enables short-term holiday lets. Many residential communities on the Costa del Sol and other coastal areas of Spain have been designed and built as a crossover between conventional homes and private resorts, so it would be shortsighted for all but the most exclusive ones to ban holiday rentals. There are far better solutions available, such as creating a workable security and entry system for guests, or even better – having a professional management company take care of the process to ensure peace, security and a smooth-running community.