New Regulations for Vacation Rentals in the Comunidad Valenciana: What You Need to Know

The real estate market on the Costa Blanca is facing new legislation that impacts vacation rental permits. These changes, outlined in the recently published Decreto Ley 9/2024 of August 2nd, introduce significant amendments and clarifications to the existing regulations regarding Licencias Turísticas.

Key Changes in the Legislation

The new legislation includes various adjustments that affect both current and future owners of vacation rental properties. Below is an overview of the most relevant changes:

1. License Renewal Requirement: All vacation rental licenses applied for from August 5th, 2024, onwards must be renewed every five years. This renewal requires not only approval from the municipality (compatibilidad urbanística) but also approval from the homeowners' association.

2. Exemption for Older Licenses: Licenses obtained before July 1st, 2018, do not need to be renewed for the time being.

3. Licenses Obtained Between 2018 and 2024: Permits issued between July 2nd, 2018, and August 4th, 2024, must be renewed in 2030, also requiring approval from both the municipality and the homeowners' association.

4. Name Changes: If there is a change in ownership, a new license must be applied for.

5. Stricter Check-In Procedures: The use of a keybox is now prohibited. The check-in process must be done in person, and someone must always be personally available to address any questions or issues that arise after check-in.

6. Ban on Partial Rentals: Renting out part of the property, such as individual rooms, is not allowed. Violations can result in fines of up to €600,000, considered a very serious offense.

7. Correct Registration of Guests: Failing to properly register guests is also considered a serious offense and can lead to hefty fines.

8. Final Responsibility When Renting Through Third Parties: When the rental is managed by a third party, the owner remains fully responsible for any violations or issues that arise. The intermediary bears no responsibility in such cases.

Stricter Controls and Enforcement with AI

To more effectively combat illegal rentals, artificial intelligence (AI) is being utilized. This means that controls on unregistered vacation rentals will be stricter, carried out by municipal authorities.

Cancellation of the Tourist License

The tourist license can be revoked in various situations, including:

• Inaccuracies in the registration, such as when the license is still in the name of the previous owner.
• If no vacation rental has taken place within two months of the license being granted.
• If no vacation rental occurs within a one-year period.
• If a license is not renewed on time.

Owners will receive a notification if their license is canceled.

Advice from Our Experts

Given the complexity and far-reaching consequences of this new legislation, we, as real estate agents on the Costa Blanca, strongly recommend that you thoroughly study these changes. It is essential to be well-informed about your rights and obligations as a landlord. We therefore advise you to consult an experienced lawyer or gestoría to guide you through the ins and outs of this legislation. This will ensure that your vacation rental is fully compliant with current legal requirements, helping you avoid any unwanted complications.