Spain’s recent legislative developments are poised to significantly alter the landscape for tourist rental properties — especially in high-demand areas like Marbella. With the amendment to the Horizontal Property Law effective as of April 3rd, 2025, property owners, real estate agents, and investors must now navigate a new regulatory environment that directly impacts the viability of short-term rental investments.
Key Legal Change: Community Consent Now Required
EffThe pivotal change lies in the revised Horizontal Property Law, which now empowers homeowners’ associations to approve or deny new tourist license applications. Specifically:
- A 3/5 majority vote from owners is required to allow tourist rentals.
- This decision applies to all future applications post-vote and does not need to be made on a case-by-case basis.
- The law is not retroactive — existing licenses remain valid.
This shift transforms the dynamics for multi-unit buildings governed by horizontal property regimes, particularly in tourist hotspots like the Golden Mile, San Pedro Playa, and Puerto Banús.
Economic and Market Impacts: Devaluation & Buyer Caution
Although the law has only been in force for a short time, early signs suggest tangible impacts:
- Sales cancellations are rising in premium tourist zones due to legal uncertainties.
- In communities where tourist rentals have been banned (prior to the national reform), demand and property values have demonstrably dropped.
- Owners are applying discounts to attract hesitant buyers, signaling a market correction linked to the regulatory shift.
This suggests a growing need for investors and agents to factor in community regulations when valuing or marketing properties.
The Bigger Picture: Housing Crisis and Political Missteps
The legislative intent behind these changes is to alleviate Spain’s housing crisis by curbing short-term rentals and redirecting supply to long-term leases. However, multiple factors challenge this approach:
Broader issues like insufficient public housing, slow urban planning processes, and rising divorce rates are also key contributors to the housing crisis.
Tourist rental homes constitute mostly second residences in coastal or historic areas, not suited for local long-term demand.
According to PWH, tourist rentals account for only a 3% price premium over long-term rents.
From Ownership to Investment: A Changing Buyer Profile
Over the past decade, Marbella’s property market has undergone a profound transformation:
- Today, 60% of buyers consider rental potential a non-negotiable factor in their purchasing decision.
- Most foreign buyers rely on tourist rental income to offset ownership costs, from mortgages to maintenance.
- Professional rental management firms and platforms have made this model both viable and attractive.
The new law disrupts this hybrid use case — vacation home and income property — posing a risk to Marbella’s long-standing appeal among international buyers.
The Risk of Going Underground: The Case Against Prohibition
Communities that have already banned tourist rentals face another unintended consequence: a rise in illegal, unregulated rentals. Without professional oversight, this can lead to greater disturbances and diminished quality of life for neighbors — precisely the issues the legislation aims to address.
A Call for Professionalization, Not Prohibition
LPA emphasizes that the solution lies not in bans but in better regulation. Recommended practices include:
- In-person guest check-ins and clear communication of community rules.
- Mandatory security deposits and noise-monitoring systems.
- 24/7 guest support and professional property management.
These measures have reduced incident rates to less than 0.05% annually among professionally managed rentals — proving that coexistence is achievable with the right systems in place.
Final Thoughts for Real Estate Professionals
The 2025 amendment to the Horizontal Property Law marks a new chapter in Spanish property regulation. For professionals on the Costa del Sol, staying informed and advising clients based on both legal context and market trends is more crucial than ever.
For further information or assistance in understanding these regulations, feel free to reach out to LPA Spain or consult with legal experts specializing in Spanish real estate law.