Financial
You may have already seen it in the media, since April 3rd there is a new law in Spain that affects the rental of homes. We have already received several questions about this, and would therefore like to give you a clear explanation of what exactly has changed – and what this means for you.
Until recently, Owners’ Associations (VvEs) could decide with a majority of 60% to ban short-term rentals (less than 11 days) – think of platforms like Airbnb. That arrangement has now been reversed. Instead of letting being allowed by default unless it is stopped, it is now the other way around: letting is only allowed if the VvE explicitly gives permission for this with the same majority of 60%. Not retroactive: The law does not apply retroactively: if you were legally letting before April 3, 2025, you may continue to do so. However, no individual approval is required for each home; general approval by the community is sufficient.
In reality, that is not so bad. The possibility to restrict renting already existed, but now the initiative lies with the proponents instead of the opponents. What is especially important to know: there is no general ban on renting – something that some news reports suggest, but is not true.
Who typically objects to rentals?
These are mainly Spanish residents who live permanently in a complex and are not always waiting for changing tourists around them. But this profile is rarely found in new-build complexes that are specially developed for foreign buyers or investors. In these projects, the VvE often consists of like-minded owners who do focus on renting and increasing value.
What does this mean for you as an investor?
At Sublicasa, we have been taking these developments into account for a long time. That is why we advise our clients not to invest in older apartments with a view to quick rental or resale (also consider the mandatory energy certificate from 2030). In our opinion, new construction projects in which rental is explicitly permitted and in which the majority of the owners are investors remain the most future-proof choice.
And there is an added benefit
Because renting out in some complexes is becoming more difficult, the total supply of rental properties will shrink. This only makes the properties in which renting out is permitted more interesting – for tourists and for you as a landlord. The chance of higher rental income therefore increases.
Are you curious about which projects are interesting to invest in with a view to renting out? Let us know. We are happy to think along with you.