New Law requiring community approval for holiday lets on residential complexes starts Thursday


  • 02-04-2025
  • National
  • Canarian Weekly
  • Photo Credit: CW
New Law requiring community approval for holiday lets on residential complexes starts Thursday

From this Thursday, 3rd April, owners of properties on residential complexes in Spain, including the Canary Islands, who wish to rent out their homes to tourists will need the explicit approval of their neighbours via a community vote.

Under the new legislation, Organic Law 1/2025 which updates the Horizontal Property Act, starting a new tourist rental will now require a three-fifths (60%) majority vote from the community of property owners.

This legal shift grants more power to neighbourhood communities, allowing them to control the rise of tourist accommodation in residential buildings and complexes.

The change comes amid growing concerns about the impact of holiday lets and short-term rentals on housing availability and affordability, with the government citing a direct link between tourist lets and rising rental prices across the country.

The new rules state that if an owner begins tourist rental activity without the necessary support, neighbours, through the community president or other residents, can demand the activity be stopped immediately. If ignored, they can pursue legal action to halt the unauthorised use.

Importantly, these regulations will not apply retroactively. Apartments already being used for holiday lets before the law comes into effect may continue renting to holidaymakers, but any new ones will fall under the stricter framework.

The government has also indicated plans to develop a taxation framework that will define tourist rentals as an economic activity, thereby subjecting them to the Spanish equivalent of VAT, IVA in Spain and IGIC in the Canaries. In addition, a central registry designed to prevent short-term rental fraud will come into force on 1st July.

Housing Minister Isabel Rodríguez defended the legislation, stating: “We need more housing and less Airbnb’s.” She expressed particular support for localised bans in areas most affected by the housing crisis.

The law has been welcomed by the General Council of Property Administrators, which views it as a much-needed clarification of the legal rights of residential communities. Hotel industry representatives have also voiced support, urging further limitations on tourist apartments, which they argue distort competition and put pressure on local housing markets.

Meanwhile, short-term rental platforms have responded by calling for “fair and balanced regulation” that recognises the economic contribution of tourist rentals to local communities while addressing genuine concerns over housing access.

The government believes the reform strikes this balance, empowering communities, protecting residents, and ensuring that the tourism industry remains sustainable and accountable.

 

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