Holiday Rental in Spain: The Spanish Supreme Court Ruling 2025
Investing in a buy-to-let property in Spain can be an attractive opportunity, particularly with the rising demand for holiday rentals. However, prospective buyers must carefully consider the legal and community-specific regulations before making a purchase. A recent ruling by the Supreme Court has highlighted the importance of understanding the rules governing holiday rental in Spain in residential communities.
The court’s decision to classify holiday rentals as commercial activities has significant implications for property owners, especially in communities with statutes that explicitly prohibit such activities. Failure to comply with these rules could result in legal challenges and financial setbacks.
Below is a translated document received by a community of owners relating to holiday rental in Spain in 2025.
Q1: What is the latest update about holiday rentals in our community?
A: The Spanish Supreme Court has ruled that all holiday rentals are considered commercial activities. This ruling is final and cannot be appealed. It directly affects residential communities like ours, which have legally registered statutes prohibiting commercial activities.
Q2: Is this ruling related to the new regulation of the Horizontal Property Law?
A: No, it’s different. The Horizontal Property Law allowed communities to limit or stop holiday rentals with the approval of three-fifths of the property owners.
This new ruling, however, states that renting out properties for tourist use is an economic activity. If the community statutes prohibit any commercial activities, holiday rentals cannot be conducted.
Q3: How does this ruling impact our community?
A: The ruling makes holiday rentals illegal in communities like ours, where commercial activities are explicitly prohibited in the statutes.
Q4: What do the statutes of our community say about commercial activities?
A: Our statutes clearly state that no commercial activities are allowed. These statutes are legally registered and cannot be changed without the unanimous agreement of all property owners.
Here’s what Article 5 of the statute says about holiday rental in Spain:
“Independent properties must be used exclusively as residences. Therefore, owners or occupants are prohibited from engaging in activities that alter this purpose. Activities that are harmful to the property, dangerous, disruptive, or of any other nature that may affect shared areas are also prohibited.”
Q5: Can this ruling be challenged?
A: No, decisions made by the Supreme Court cannot be appealed.
Q6: Can the community statutes be amended to allow holiday rentals?
A: Any changes to the statutes require 100% approval from all property owners during the Annual General Meeting (AGM). A request for such a change must be submitted in advance to the Community President to include it on the meeting agenda.
Q7: Are long-term rentals allowed?
A: Yes, rentals of at least two consecutive months are permitted. These are not considered commercial activities under the Supreme Court ruling. For a rental to qualify as long-term, it must last at least two consecutive months with the same tenant. The lease agreement must be made directly between the property owner and the tenant.
Q8: Does a property owner need a licence for long-term rentals?
A: No licence is required for long-term rentals. However, property owners are responsible for declaring any rental income to the relevant local or foreign tax authorities.
Before investing in a buy-to-let property in Malaga, the Costa del Sol, Cadiz, or the Costa de la Luz, it’s essential to fully understand the legal and community-specific rules that may affect your plans. The recent Spanish Supreme Court ruling serves as a reminder of the complexities involved in holiday rentals and the potential restrictions within residential communities.
As we have mentioned in previous articles long-term rentals may be a safer and more interesting investment opportunity!
This article highlights the limitations imposed on holiday rental in Spain in Malaga Capital.
At Move to Malaga, we specialise in helping property investors navigate these challenges with expert advice tailored to your needs. Our team ensures you have all the information necessary to make informed decisions and avoid costly mistakes.