In a landmark decision, the Supreme Court of Spain has settled one of the most contentious legal issues surrounding holiday let properties in residential buildings and complexes. The high court ruled that the communities of property owners have the authority to prohibit short-term tourist rentals with a three-fifths majority vote (60%), rather than requiring unanimous consent.
This decision grants greater power to residents to control the development of tourist activity within their complexes.
The Legal Background
The controversy stems from the 2019 amendment to Spain's Horizontal Property Law, introduced by Royal Decree-Law 7/2019, which aimed to regulate the increasing number of tourist rentals. Article 17.12 of the law allowed communities to vote on whether to restrict or ban such activity, but it did not clarify the voting threshold required for a decision. As a result, conflicting rulings from different provincial courts created uncertainty about whether a unanimous vote or a three-fifths majority was necessary.
The Supreme Court, through two recent rulings, has now confirmed that a three-fifths majority is sufficient. This decision resolves the judicial dispute and establishes a clear guideline for communities of owners looking to limit or ban tourist rentals in their buildings, and stops a single dissenting vote from the owner of a rental apartment blocking the community's decision which is what could happen before.
Previous Rulings and Legal Implications
This is not the first time the Supreme Court has addressed the issue. In December 2023, the court ruled that even if a property meets all the legal and municipal requirements to operate as a tourist rental, it can still be banned by the community if the community’s statutes explicitly forbid economic activities such as short-term rentals. The government is currently working to revise the Horizontal Property Law to align with the Supreme Court's jurisprudence on this matter.
The latest ruling has wide-reaching implications for communities of owners across Spain, especially in urban areas where tourist rentals have contributed to housing shortages and increased rental prices. The decision empowers property owners to take control over the economic activities in their buildings and complexes, and legally stop them, ensuring that they remain residential in line with the preferences of the majority.
Moving Forward
With this ruling, the Supreme Court has brought clarity to one of the main legal questions surrounding the regulation of tourist rentals. Communities now have a clear legal framework for banning such activities if a sufficient majority agrees, alleviating fears that a single dissenting vote could stall their efforts.
The government’s ongoing work to modify the Horizontal Property Law will likely further reinforce this legal precedent, making it easier for residential communities to navigate these issues.
Canary Islands Response
The ruling has garnered particular attention in regions heavily affected by tourism, such as the Canary Islands. ASCAV (The Canary Islands Holiday Rental Association) has welcomed the ruling, praising it for enhancing the ability of property owners' associations to “freely establish whether they wish to limit, condition, or prohibit” tourist rentals. ASCAV emphasised that this decision upholds the rights of property owners and provides clear guidelines for regulating holiday rentals.
However, while the ruling allows communities to prohibit tourist apartments with a three-fifths majority vote, ASCAV claims that any new measures adopted will not be retroactive. This means that property owners who were already renting their homes to tourists before such a ban was passed will not be affected by the new rules.
For now, the ruling represents a significant shift in favour of property owners associations and their ability to regulate short-term tourist rentals, helping to address the challenges posed by the rise of this rental model in Spain.
