Essential Things You Need to Know if you are renting a property in Murcia or Valencia
- New Laws: Spain has introduced stricter rules for tourist rentals in Murcia and Valencia, including a new national registry.
- Compliance is Key: Hefty fines (up to €600,000) and rental bans apply for non-compliance.
- Licensing: You need a tourist licence if you rent your property for 10 days or less in Valencia, or for any short-term period in Murcia.
- Key Requirements: Ensure your property meets basic standards (water, electricity, etc.), has emergency equipment, and you have liability insurance.
- Guest Registration: Register all guests with the police within 24 hours of arrival.
- Taxes: Declare your rental income and pay the applicable taxes.
- National Registry: All tourist rentals must be registered in the new national registry by July 2025.
- How do I legally register my property?: ABAD Abogados specialises in tourist rental compliance and can guide you through the legal complexities.
Ensure your tourist rental property complies with the latest regulations to avoid hefty fines and legal complications.
Our expert legal team at ABAD Abogados is here to guide you through the process seamlessly.
Renting out your property in Spain
The Evolving Landscape of Tourist Rentals in Spain
Spain’s short-term rental market is booming, but it’s also undergoing a period of significant regulatory change.
Property owners and investors must stay informed and compliant with evolving laws to avoid penalties and ensure the long-term viability of their rental businesses.
The 2024 updates to tourist rental laws in Murcia and Comunidad Valenciana introduced stricter licensing requirements, enhanced enforcement, and new compliance measures.
Additionally, a new national registry for tourist rentals will come into effect in July 2025, centralizing data collection and potentially impacting regulations across Spain.
ABAD Abogados has observed a significant increase in client inquiries regarding these changes, highlighting the growing need for expert legal guidance in this evolving landscape.
Why Compliance Matters Now More Than Ever
Failing to comply with these new regulations can lead to hefty fines, property restrictions, and legal complications. Penalties for non-compliance can range from €10,000 to €600,000, depending on the severity of the infraction. In addition to financial penalties, authorities can impose property restrictions or even rental bans for repeat violations.
Understanding the new rules is crucial for owners looking to maintain profitable and legally sound rental operations. ABAD Abogados has successfully defended clients against unjust penalties by demonstrating proactive compliance efforts.
Understanding Holiday Rentals in Spain
Holiday Homes vs. Tourist Apartments: Key Distinctions
- Holiday Homes (Vivienda de Uso Turístico – VUT): Single properties rented out for short stays.
- Tourist Apartments (Apartamentos Turísticos): Multiple units managed under a single ownership.
Scope: Murcia, Comunidad Valenciana & the National Registry
This guide focuses on the new rules for holiday rentals in Murcia and Comunidad Valenciana. It also addresses the implications of the national registry, set to take effect in July 2025, which will centralize data collection and potentially impact regulations across Spain.
ABAD Abogados is closely monitoring the development of this national registry and will provide updates to our clients as they become available.
The National Registry for Tourist Rentals
What is it?
The national registry is a centralized database of all tourist rental properties in Spain. It is being implemented to improve regulation and oversight of the tourist rental sector, combat the underground economy, and protect consumer rights.
While the regulation came into effect on January 2, its enforcement will begin on July 1, 2025.
How does it work?
All owners who wish to rent their property to tourists will be required to register with the national registry and obtain a registration number. This number must be displayed on any advertisements or listings for the property. Online platforms (OTAs) will also be required to verify that properties listed on their sites have a valid registration number.
What is the purpose?
The main purposes of the national registry are to:
- Increase transparency in the tourist rental market.
- Ensure that all rental properties meet minimum legal requirements.
- Reduce unfair competition from unregistered properties.
- Protect tourists from scams and substandard accommodation.
- Facilitate the collection of tourist taxes.
How will it affect owners?
Owners will need to register their properties with the Colegio de Registradores (College of Registrars) using a digital certificate and provide all required documentation, including proof of compliance with regional and local regulations.
They will also be required to submit an annual report with information about their rental activity. Failure to register can result in fines, being unable to list on OTAs, and even the suspension of rental activity.
How will it affect online platforms?
OTAs will be required to implement systems to verify the registration status of properties listed on their platforms. They will also need to cooperate with authorities by providing data on rental activity.
ABAD Abogados and the National Registry
ABAD Abogados can assist property owners with understanding the requirements of the national registry and ensuring their properties are compliant.
We can help with gathering the necessary documentation, navigating the registration process, and fulfilling ongoing reporting obligations.
Tourist Rental Laws in Comunidad Valenciana
Key Changes You Need to Know
- Rental Duration Limits: Properties rented for 10 days or less require a tourist licence; rentals of 11 days or more are classified as seasonal rentals and fall under different regulations. ABAD Abogados advises that it’s crucial to accurately classify your rental duration, as miscategorization can lead to compliance issues.
- License Validity and Renewal: Tourist licenses are valid for 5 years and require renewal through a new “responsible declaration.”
- Homeowners’ Association Approval: New registrations require a certificate of approval from the Homeowners’ Association (Asociación de Vecinos), ensuring community consent for tourist rentals. ABAD Abogados notes that obtaining this approval can sometimes be challenging. We recommend engaging with your Homeowners’ Association early in the process to address any potential concerns and ensure a smooth application.
- Prohibition of Per-Room Rentals: Entire properties must be rented; room-by-room rentals are prohibited under the new regulations.
- Mandatory Cadastral Reference: The property’s cadastral reference (a unique identifier for your property) must be included in all advertisements and official documents. This can be found on your property tax bill or by contacting the Catastro office.
- Mandatory Cadastral Reference: The property’s cadastral reference (a unique identifier for your property) must be included in all advertisements and official documents. This can be found on your property tax bill or by contacting the Catastro office.
- New License for Property Changes: If a property is sold or undergoes significant modifications, a new tourist licence application is required.
- Tourist-Only Use Restriction: Properties with a tourist licence cannot be used for long-term rentals; they must be dedicated solely to tourist accommodation.
- Commencement of Rental Activity: Owners must begin renting the property within 2 months of obtaining a licence, or the licence may lapse.
- Transition Periods and Deadlines:
- Licences before July 1, 2018: No changes are needed for properties licensed before this date.
- Licences from July 7, 2018 – August 2, 2024: These properties must comply with the new regulations by 2030.
- Licences after August 2, 2024: Properties licensed after this date must meet the new rules immediately. ABAD Abogados recommends all owners, regardless of licensing date, review the latest regulations to ensure full compliance.
- Local Council Authority and “Strained Areas”: Local councils have increased authority to regulate and potentially restrict holiday rentals in areas with high tourism impact or “strained areas.” This allows for greater local control in managing the effects of tourism on residential communities. ABAD Abogados can provide guidance on specific local regulations that may apply to your property.
Tourist Rental Regulations in Murcia
Decree 75/2005: Stricter Enforcement and the National Registry
While Murcia’s regulatory framework remains under Decree 75/2005, enforcement is stricter, and the national registry will apply from July 2025. This means property owners must be even more diligent in meeting requirements and reporting obligations.
ABAD Abogados has observed increased scrutiny of compliance in Murcia, making legal counsel more important than ever.
Essential Requirements for Compliance
- First Occupation Licence & Accessibility Law Compliance: Properties must possess a First Occupation License and comply with accessibility regulations to ensure safety and access for all guests. ABAD Abogados can help you determine if your property meets the required accessibility standards.
- Minimum Property Standards: These include ensuring a continuous supply of hot water, electricity, and essential amenities like a TV and waste disposal facilities. Regular cleaning and fresh bedding are also required. ABAD Abogados recommends keeping detailed records of cleaning and maintenance to demonstrate compliance.
- Emergency Preparedness: Properties must have a first aid kit, an evacuation plan, and readily available emergency contact information.
- Civil Liability Insurance: A minimum coverage of €500,000 is required to protect against potential damages or injuries to guests or the property. ABAD Abogados can advise you on the appropriate insurance coverage for your specific needs.
Mandatory Guest Registration: All guests over 16 years of age must be registered with the police or Civil Guard within 24 hours of arrival. ABAD Abogados emphasizes the importance of timely guest registration not only for compliance but also for security. We recommend using a secure online platform to streamline this process.
Registration Process: "Declaración Responsable"
Owners must submit a Declaración Responsable (responsible declaration) to the Tourism Institute of the Region of Murcia, declaring their intention to rent the property for tourism purposes and confirming compliance with all requirements. This allows them to begin renting legally while awaiting final approval, which typically takes around 3 months.
ABAD Abogados can assist with preparing and submitting the Declaración Responsable, ensuring all necessary documentation is included and the process goes smoothly.
Room Rentals: Conditions and Restrictions
Unlike Valencia, Murcia allows room rentals, but only if the owner resides on-site. This provision aims to maintain a degree of oversight and responsibility in shared living spaces.
Step-by-Step Guide to Obtaining a Tourist Rental License
Navigating the “Declaración Responsable” Application
- Gather all required documentation:
- Property description and classification (holiday home or tourist apartment).
- Dates of rental availability.
- Detailed floor plan (1:100 or 1:50 scale).
- Proof of compliance with minimum property requirements (First Occupation License, accessibility, etc.).
- Civil liability insurance documentation.
- List of accommodations in Excel format, including details like property address, maximum occupancy, number of bathrooms, and number of TVs.
- Submit the Declaración Responsable to the Tourism Institute of the Region of Murcia.
- Await property inspection by the relevant authorities.
- Receive license approval (typically within 3 months). You can begin renting immediately after submitting the Declaración Responsable.
Legal and Fiscal Obligations for Tourist Rentals
Taxation: A Detailed Breakdown
- Income Declaration and Reporting: All rental income must be declared to the Spanish tax office (Agencia Tributaria). Digital rental platforms (Airbnb, Booking.com, etc.) are also obligated to report rental income to the tax authorities. ABAD Abogados can help you understand your tax obligations and ensure accurate reporting.
- Tax Rates:
- EU/EEA Residents: 19% (with the possibility of deducting eligible expenses like mortgage interest, property taxes, and maintenance costs). ABAD Abogados can assist with navigating the complexities of expense deductions for EU/EEA residents, ensuring you maximize your returns while remaining compliant.
- Non-EEA Residents: 24% (generally without the ability to deduct expenses).
- VAT and Tourist Tax: A 10% VAT rate applies to short-term rentals. Some regions, like Valencia, may also imp
Guest Registration: Reporting Requirements
As mentioned earlier, all guests must be registered with the police or Civil Guard within 24 hours of their arrival. This is a crucial security measure and a legal requirement for all tourist accommodations.
Insurance: Protecting Your Investment and Guests
Mandatory Civil Liability Insurance must cover at least €500,000 to protect against potential damages or injuries to guests or the property. It’s also highly advisable to obtain comprehensive holiday home insurance to cover other risks, such as accidental damage, theft, and squatter protection.
ABAD Abogados can help you secure the right insurance policies for your property.
Fines and Penalties for Non-Compliance
The consequences for non-compliance with tourist rental regulations can be severe:
- Fines for Unlicensed Rentals: Operating without a valid tourist license can result in fines ranging from €10,000 to €600,000.
- Fines for Failure to Register Guests: Failing to register guests with the authorities can lead to fines of up to €30,000.
- Property Restrictions or Rental Bans: Repeat violations can result in property restrictions or even rental bans, severely impacting your rental business.
Opportunities For Medium-Term Rentals & Investment
The Rise of Seasonal Rentals: Advantages and Regulations
Properties rented for 11 days or more fall under seasonal rental rules, which are generally less stringent than those for tourist rentals.
This presents an opportunity for owners to avoid the complexities of tourist licenses while still catering to a growing market of expats, business travellers, and digital nomads seeking longer stays.
Investment Potential: Capitalising on the Growing Demand
With tighter regulations on short-term tourist rentals, investors are increasingly exploring the potential of medium-term rentals. This segment offers a more stable income stream and potentially lower compliance burdens compared to traditional holiday lets.
ABAD Abogados: Your Trusted Partner in Tourist Rental Compliance
Navigating Spain’s rental laws can be complex, especially with regional variations and recent updates. ABAD Abogados is a leading law firm specialising in property law and real estate, with extensive experience in assisting clients with tourist rental compliance in Murcia, Alicante and The Comunidad Valenciana.
Our team of expert lawyers can guide you through the legal complexities, ensuring you meet all requirements and avoid potential penalties.
We have offices in Murcia, Orihuela Costa (La Zenia), and Los Alcázares to serve you locally.
- Experience, Expertise, and Personalised Service: ABAD Abogados employs a team of expert lawyers with extensive experience in property law and tourist rental regulations in Murcia and Comunidad Valenciana. We provide personalised legal solutions tailored to your specific needs and circumstances.
- Multilingual Team for International Clients: Our team includes multilingual legal professionals who can assist clients from various backgrounds, ensuring clear communication and effective representation.
- Proven Track Record of Success: We have a successful track record of helping clients navigate the complexities of tourist rental regulations, ensuring compliance and protecting their investments.
Contact us today to see how we can help your with your property rental.
Conclusion: Understanding Tourist Rental Laws in Murcia & Valencia
Stay Ahead of the Curve: The Importance of Compliance
Understanding and complying with Spain’s evolving tourist rental laws is essential for successful and legally sound property rental operations. By staying informed and seeking expert legal advice, you can avoid costly penalties, protect your investment, and contribute to the sustainable growth of the tourist rental market in Spain.
FAQs
- Q: What are the main differences between holiday homes and tourist apartments?
A: Holiday homes are single properties rented for short stays, while tourist apartments are multiple units under single ownership. - Q: What is the minimum required coverage for civil liability insurance?
A: The minimum coverage for civil liability insurance is €500,000. - Q: Can I rent out individual rooms in my property?
A: In Valencia, renting individual rooms is prohibited. In Murcia, it’s allowed only if the owner lives on-site. - Q: What are the tax implications for rental income?
A: Rental income is subject to tax, with rates varying based on residency status. EU/EEA residents are taxed at 19%, while non-EEA residents are taxed at 24%. - Q: What is the national registry for tourist rentals?
A: It is a centralized database of all tourist rental properties in Spain, designed to improve regulation and oversight of the sector. - Q: Is it mandatory to register my property with the national registry?
A: Yes, it is mandatory for all tourist rentals. Failure to register can result in fines and other penalties. - Q: When does the national registry come into effect?
A: The registry will be effective from July 1st, 2025. - Q: How do I register my property with the national registry?
A: You need to apply to the Colegio de Registradores (College of Registrars) with the required documentation, including a digital certificate. - Q: What are the benefits of registering my property?
A: Registration ensures compliance with the law, avoids penalties, and increases transparency and trust in the tourist rental market. - Q: Where can I get help with understanding and complying with the new tourist rental laws?
A: ABAD Abogados can provide expert legal guidance and assistance with all aspects of tourist rental compliance.
About Mr Isaac Abad Garrido
Mr Isaac Abad Garrido is the Senior Partner at ABAD & ASOCIADOS Lawyers & Accountants, with over 25 years of experience specialising in Real Estate Law, Tax Law, Corporate Law, Bankruptcy Law, Business Restructuring, and Community Administration.
He has been consistently recognised among The Best Lawyers in Spain™ from 2020 to 2025 for excellence in Tax Law, and in 2022, he was named “Lawyer of the Year” in Tax Law (Murcia, Spain).
A member of the International Bar Association, he is also an Associate Partner of the Spanish Royal Academy of Jurisprudence and Law. Additionally, he serves as a Professor at the University of Murcia, teaching Tax Law, and is a regular contributor to leading international tax law publications, including Newsweek.
Mr Abad Garrido holds degrees in Law, Business Administration, and Accounting, complemented by postgraduate studies at IE Business School. He is a Certified Auditor registered with the Official Registry of Auditors (ROAC).
For legal enquiries, visit abadabogados.com or connect with Mr Abad Garrido on LinkedIn.
