Thinking of renting out your property in Spain? You’re not alone. According to our latest survey, 42% of our readers are considering renting their Spanish home to help cover costs or generate income. Whether you’re planning occasional holiday lets, longer-term rentals or a mix of both, the key is understanding how Spain’s rental system actually works.
Spain remains a popular and viable country for property rentals, but it is also a highly regulated one. Rules vary by region, town hall and even individual communities of owners. That means there’s no single checklist that applies everywhere – but with the right preparation, renting out your home legally and successfully is entirely achievable.
This guide walks you through the essentials, from licences and community rules to taxes and local enforcement, so you can make informed decisions before you rent.
Contents
- The two main ways to rent out a property in Spain
- Why holiday rentals are more tightly regulated
- Licensing – what you need to know
- The role of communities of owners
- What about town halls and regional authorities?
- Longer-term rentals – a simpler alternative?
- Do you pay tax on rental income?
- Three tips for renting successfully
- Final thoughts
- FAQs
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The two main ways to rent out a property in Spain
Before you look at licences or income potential, it’s important to be clear about how you want to rent your property.
Most overseas owners fall into one of two categories.
Short-term or holiday rentals are generally defined by the length of stay rather than how the property is advertised. In many regions, including Andalusia, rentals of less than 60 days are classed as tourist accommodation and are subject to the strictest regulation, including licensing and registration requirements.
Longer-term rentals usually run for several months or more and are often used by residents, seasonal workers or people relocating to Spain. These typically do not require a tourist rental licence, but they are still regulated under Spain’s Urban Rental Law and come with specific legal protections for tenants.
Some owners plan a hybrid approach, such as holiday lets in summer and longer-term rentals over winter. Whether this is possible depends entirely on regional rules, local council policy and the regulations of the community of owners.
Why holiday rentals are more tightly regulated
Short-term rentals have come under increasing scrutiny in Spain, particularly in city centres and coastal hotspots. The driving force behind this is the national housing shortage, with local and regional governments trying to balance tourism with access to housing for residents.
As a result, most regions require a tourist rental licence to legally advertise a property for short stays. In addition, all short-term and seasonal rentals must now be registered on Spain’s national rental registry, known as the Ventanilla Única Digital de Arrendamientos.
Each qualifying rental is issued with a unique national registration number, which must be displayed on property listings. Rental platforms such as Airbnb and Booking.com are legally required to verify these numbers and remove any property that is not correctly registered.
This doesn’t mean holiday rentals are being phased out across Spain. What it does mean is that authorities are focusing on tighter control and enforcement, particularly where unregistered or illegal rentals have been common.
Licensing – what you need to know
Licensing rules are set at regional level, so the process and criteria vary widely. Some regions require properties to meet minimum size, ventilation or facilities standards. Others focus more on location and zoning.
If your property already has a valid tourist rental licence, that puts you in a strong position. In most cases, once a licence is granted, it remains valid even if rules tighten later. This is why properties with existing licences are increasingly attractive to buyers.
If you don’t yet have a licence, you’ll need to check three things before applying:
- Regional regulations for tourist rentals
- The stance of the local town hall
- The rules of your community of owners
All three matter, and one can block the others.
The role of communities of owners
If your property is part of a community of owners, you now need express written approval from the community before you can even apply for a tourist rental licence. Since changes to the Horizontal Property Law in 2025, the default position has shifted.
Holiday rentals are no longer automatically permitted unless a community has explicitly banned them. Instead, you must obtain a formal certificate of approval, passed at a general meeting by at least 60% (three-fifths) of owners and ownership shares.
Communities can also use this same majority to ban holiday rentals outright, even if they were previously allowed. These decisions cannot be applied retrospectively to properties that already hold valid tourist rental licences.
Even where a licence exists, some communities continue to rely on older by-laws that prohibit “economic activity” within the development. In certain cases, this has affected an owner’s ability to obtain or retain the additional registration numbers required to advertise on rental platforms. These situations are highly case-specific and often depend on how local authorities and platforms interpret community rules.
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What about town halls and regional authorities?
Municipalities are also playing a growing role. Some town halls have introduced temporary freezes on issuing new holiday rental licences, particularly in high-pressure areas. These freezes are usually time-limited and often apply only to certain zones.
Headlines about mass bans can be misleading. In many cases, local authorities are targeting unregistered or illegal rentals, not licensed properties operating within the rules.
Still, if rental income is important to you, researching the local council’s policy before you buy is crucial.
Longer-term rentals – a simpler alternative?
Longer-term rentals are generally less regulated than holiday lets and don’t usually require a tourist licence. They can offer more stability, fewer management demands and less friction with neighbours.
However, Spain has strong tenant protection laws. Contracts, notice periods and eviction rules must be handled carefully, and income must still be declared and taxed correctly.
This option suits owners who aren’t focused on peak-season income or who plan to use the property themselves only occasionally.
Do you pay tax on rental income?
Rental income earned from a property in Spain is taxable, even if you are not resident.
EU and EEA residents currently pay 19% on net rental income, which means certain allowable expenses, such as repairs, community fees and local property taxes, can usually be deducted.
Non-EU residents, including UK owners, are generally taxed at 24% on gross rental income, with no deductions permitted under current Spanish tax authority practice. While recent court cases have begun to challenge this difference, the tax agency continues to apply the 24% gross rate in most cases. Until there is definitive guidance, non-EU owners are advised to budget on this basis.
Depending on how the property is rented, you may also need to register for VAT, collect tourist taxes in certain regions and submit regular declarations. A gestor or specialist tax adviser can help ensure everything is handled correctly.
Three tips for renting successfully
1. Get professional advice early
A good lawyer and local agent can tell you what is possible before you commit. Rules change, interpretations vary and assumptions can be costly.
2. Choose the right location
Some areas are far more rental-friendly than others. A property that works perfectly as a holiday let in one town may be restricted just a few kilometres away.
3. Factor in management
If you won’t be in Spain full time, you’ll need reliable local support for keys, cleaning, maintenance and compliance.
Final thoughts
Renting out a property in Spain is still very much possible – but it requires planning, research and realistic expectations. The days of buying anywhere and renting without oversight are gone, but a well-chosen property in the right location can still generate income and flexibility.
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FAQs
It depends on how you rent the property and where it is located. Short-term or holiday rentals usually require a tourist rental licence issued by the regional authority, as well as registration on Spain’s national rental registry before the property can be advertised online. Longer-term rentals generally do not require a tourist licence, but they must still comply with tenancy laws and be correctly declared for tax purposes.
There is no single national rule change, but enforcement has tightened. Communities of owners can now require formal approval before a licence can be applied for, town halls may limit or freeze new licences in certain areas, and all short-term rentals must be registered on the national rental registry. The rules that apply depend on the property’s region, municipality and community by-laws.
Yes. Rental income from a Spanish property is taxable even if you are not resident. EU and EEA residents are taxed on net income, while non-EU residents are usually taxed on gross income. All rental income must be declared to the Spanish tax authorities.
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