If you own — or are about to buy — a property on the Costa Blanca, Costa Cálida, Costa del Sol or Costa Almería and plan to let it out, the single most important piece of legislation you need to understand is the Ley de Arrendamientos Urbanos (LAU), Spain's national urban tenancy law. The LAU governs residential long-term lets, sets minimum contract durations (five years when the landlord is an individual, seven when it is a company), caps deposits, and gives tenants strong renewal and protection rights. Short holiday lets, by contrast, fall outside the LAU and are controlled by regional tourist regulations — which differ sharply between the Comunitat Valenciana, the Región de Murcia and Andalucía.
In practice, the first decision every owner must make is which of three legal categories their let falls into: a long-term residential let (LAU-protected), a seasonal/temporary let (a defined purpose such as a work posting or study), or a tourist let (short holiday stays needing a regional licence). Each carries different obligations, tax treatment and levels of tenant protection. Getting this wrong is the most common — and most expensive — mistake made by international owners on the Spanish coast.
Spanish rental law treats these three arrangements very differently. Choosing the right one determines your tax, your paperwork and how easily you can recover the property.
| Feature | Long-term residential (LAU) | Seasonal / temporary | Tourist let |
|---|---|---|---|
| Governing rules | LAU (national law) | LAU (temporary purpose) | Regional tourism decrees |
| Typical duration | Rolling up to 5 years (7 if landlord is a company) | Fixed, defined purpose (weeks–months) | Nights or a few weeks |
| Tenant renewal rights | Strong — automatic annual extensions | None beyond agreed term | None |
| Licence required | No | No | Yes — regional tourist registration |
| Income tax (residents) | Up to 60% reduction on net rent | Limited/no reduction | No reduction; business-style rules |
Under the LAU, once a tenant signs a residential contract they have the right to stay for up to five years (or seven years if the landlord is a company/legal entity), regardless of the shorter term written into the contract. This works by tácita reconducción — automatic annual extensions:
A landlord can only reclaim the home before the five years are up in narrow circumstances — most notably genuine need for the owner or a close family member to live there, and only where this need was expressly stated in the contract. This is why owners on the Costa Cálida and Costa Almería who may want the property back for personal use should have their lawyer draft the clause carefully at the outset.
The LAU standardises several key financial points across all four coastal regions:
Owners retain substantial protections under the LAU, provided the contract is properly drafted:
Eviction (desahucio) for non-payment runs through the courts via a specific fast-track procedure. In practice it can still take several months, and recent "vulnerable household" rules can pause proceedings where a tenant is certified as economically vulnerable and the landlord is a large holder of property. For individual owners with one or two properties on the Costa Blanca or Costa del Sol, the process is usually more straightforward, but the golden rules are: sign a watertight contract, take out non-payment insurance where possible, and act quickly at the first missed payment.
Tenants under a long-term LAU contract enjoy some of the strongest protections in Europe:
This is where the four Mediter regions diverge, because short-term holiday letting is regulated by each autonomous community, not by the LAU. If you let for short stays without the correct registration, you risk substantial fines.
In the Comunitat Valenciana (Costa Blanca), holiday rentals (viviendas de uso turístico) must be registered in the regional tourism registry and display their licence number in all advertising. The region has tightened rules significantly, requiring, among other things, a certificate of urban compatibility from the town hall and community-of-owners consent in many buildings. On the Costa Cálida (Región de Murcia), tourist lets must likewise be registered with the regional tourism authority and meet minimum quality and safety standards.
In Andalucía, holiday homes (viviendas con fines turísticos) are registered in the Andalusian Tourism Registry (RTA) and must meet requirements on air-conditioning/heating, first-aid kits, guest information and complaint forms. Málaga (Costa del Sol) municipalities have introduced additional restrictions in saturated zones, and community statutes can now more easily prohibit or limit tourist lets by a qualified majority of owners.
Tax treatment depends on where you are tax-resident and the type of let. This is one of the most misunderstood areas for international owners.
| Owner status | Long-term residential let | Tourist / short-term let |
|---|---|---|
| Spanish tax resident | IRPF on net rent; up to ~60% reduction on residential lettings | IRPF on net income; generally no reduction |
| EU/EEA non-resident | Non-resident income tax at 19% on net income (deduct expenses) | 19% on net income |
| Non-EU non-resident (e.g. UK) | 24% on gross income (expenses not deductible) | 24% on gross income |
Since Brexit, British owners are treated as non-EU non-residents, which usually means the higher 24% rate on gross rent with no expense deductions — an important figure to model before you buy. Always confirm your position with a Spanish tax adviser, as double-taxation treaties and personal circumstances change the outcome.
Rental returns start with a clean purchase. Before you factor in rental yield, budget for the roughly 11–14% additional buying costs on top of the purchase price. The largest single item is transfer tax on resale homes:
| Region | ITP transfer tax (resale) | New build |
|---|---|---|
| Costa Blanca (Comunitat Valenciana) | ~10% ITP | 10% IVA + AJD stamp duty (~1.5%) |
| Costa Cálida (Región de Murcia) | ~8% ITP | 10% IVA + AJD stamp duty (~1.5–2%) |
| Costa del Sol (Andalucía) | ~7% ITP | 10% IVA + AJD stamp duty (~1.2%) |
| Costa Almería (Andalucía) | ~7% ITP | 10% IVA + AJD stamp duty (~1.2%) |
On top of tax, budget for notary and land-registry fees, your independent lawyer (typically around 1% + IVA), and — if you plan to let — the cost of obtaining any tourist licence. You will also need an NIE (foreigner's identification number) to buy, pay tax and sign a rental contract as a Spanish property owner.
Yes, but you must respect the LAU minimum term (five years for individual landlords, seven for companies) and give the required notice — commonly four months before the term ends. To recover it early for personal or family use, that need must be written into the contract.
No. Long-term residential lets under the LAU do not require a tourist licence. A licence is only needed for short-stay holiday lets, which are regulated separately by each region.
One month's rent as the statutory deposit (fianza), lodged with the regional authority, plus you may request an additional guarantee of up to two further months' rent.
As a non-EU non-resident you are generally taxed at 24% on gross rental income with no expense deductions. Confirm your exact position with a Spanish tax adviser, as treaty relief may apply.
Increasingly, yes. In both Andalucía and the Comunitat Valenciana, communities can restrict or prohibit tourist letting by a qualified majority. Always check the statutes before you buy with letting in mind.
A verbal tenancy can still be legally valid, but a written contract is strongly advised and is essential for lodging deposits, proving terms and any eviction proceedings.
Whether you want a long-term investment on the Costa Blanca, a holiday-let apartment on the Costa del Sol, or a family home on the Costa Cálida or Costa Almería, the team at Mediter Real Estate can guide you through the law, the licences and the numbers. Contact Mediter Real Estate today for tailored advice on buying and letting property across these four regions.
O que nos contar aqui é usado apenas para lhe responder. Privacy
