The Costa del Sol has long been a prime destination for international buyers, investors, and lifestyle seekers. Known for its year-round sunshine, robust infrastructure, and strong rental yields, the region has consistently attracted those looking for a second home or profitable investment in Southern Europe.

However, recent legislative changes are altering the landscape, especially for those relying on short-term rental income as part of their investment strategy.

A Turning Point: New Legislation Reshapes the Market

As of April 2025, the Andalusian regional government has enacted new laws that shift decision-making power to homeowners’ associations within multi-unit buildings. These communities now have the legal authority to approve or block short-term tourist rentals, such as those listed on Airbnb, Booking.com and similar platforms.

To obtain or maintain a short-term rental license, at least 60% of property owners in the building must vote in favor. This change introduces a critical layer of community control and marks a sharp departure from Spain’s previously investor-friendly stance on holiday rentals.

For buyers targeting apartments in popular hotspots like Marbella, Estepona, or Fuengirola, this means a property’s rental potential is no longer guaranteed, even if it's zoned for tourist use. The building's internal politics and resident sentiment now play a key role in determining whether short-term rentals are permitted.

National Registry Launches July 2025

In a further push for regulation and transparency, the Spanish government is introducing a nationwide registry for tourist rentals. Scheduled to go live in July 2025, this registry will serve as a centralized database of legally licensed rental properties and will be accessible to both authorities and the public.

The registry’s objectives are threefold:

• Deter unlicensed rentals that avoid taxes and legal obligations.
• Enforce the decisions made by property-owner communities.
• Help manage the pressures of overtourism and rising housing costs in saturated areas.

Spain is cracking down on more than 120,000 illegal tourist rentals, with a significant portion located in Andalusia. These reforms are part of a broader strategy to balance tourism’s economic benefits with the need for sustainable housing and quality of life for residents.

What This Means for Buyers and Owners

Whether you're a prospective investor, a homeowner, or someone considering a move to the Costa del Sol, these changes should inform your next steps.

Before You Buy:

• Investigate the community rules of the building you're considering.
• Check if the property is already licensed and whether it’s included in the new national registry.
• Assess whether short-term rentals are viable in that area or whether mid- or long-term rentals might offer more stability.

If You Already Own:

• Gauge the sentiment in your building. Will your neighbors vote to allow short-term lets?
• Explore alternative strategies like mid-term executive rentals, which may offer fewer regulatory hurdles.
• Stay updated on licensing requirements to avoid penalties or loss of rental income.

A Shift from Passive Income to Strategic Ownership

This regulatory shakeup is not unique to Spain. Across Europe, cities and regions that have been heavily impacted by tourism are introducing tighter controls on short-term rentals to protect residents and infrastructure.

For investors in the Costa del Sol, the message is clear: the era of hands-off property investment is coming to an end. Going forward, success will depend on your ability to engage with local communities, understand evolving laws, and make data-driven decisions.

Navigating the New Landscape

If you're considering a property purchase or want to evaluate your current rental strategy, professional guidance is more important than ever. At Luxe Villa, we specialize in helping clients navigate this changing market, from due diligence on properties to interpreting the latest regulations.

Contact us today to find out how we can support your investment goals on the Costa del Sol.

📧 Email: info@luxe-villa.com 🌐 Website: www.luxe-villa.com

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