New Legislation on Holiday Rentals in the Valencian Community: What You Need to Know

The Valencian Community, a key tourist destination in Spain, has implemented new legislation on holiday rentals that came into force on 2 August 2024. The regulation, prompted by the increase in tourists and the impact on local communities, aims to more strictly regulate holiday accommodations in the provinces of Alicante, Valencia, and Castellón, especially in the Costa Blanca.

What changes does the law introduce for holiday rentals?

This new law sets a series of requirements for those renting properties for less than 11 days, classifying these rentals as "touristic." Here are the main points:

1. Mandatory licences with limited validity: Holiday rental licences are valid for five years and are renewable. The renewal request must be submitted at least one month before the current licence expires.
2. Community authorisation: For new licences applied for after 2 August 2024, permission from the community of property owners is mandatory. However, if you already have a licence from before this date, this requirement does not apply.
3. Ban on room rentals: The new regulation only allows the rental of the entire property; renting by the room is not permitted.
4. Specific equipment and safety requirements: The law requires holiday rental properties to meet certain minimum standards, such as an evacuation plan posted at the entrance, internet access (where possible), hot water supply, heating and cooling, and a first-aid kit.
5. Limitation on rental types: It is not allowed to mix rental types within the same property. If you choose to rent as a holiday home, you cannot offer medium- or long-term rentals in the same property.
6. Quick rental start: Once the holiday rental licence is obtained, it is mandatory to start renting out the property within two months; otherwise, the licence will be cancelled.

Fines for non-compliance

The law imposes significant fines for those who do not comply with the new requirements, with penalties ranging from €10,000 to €600,000, depending on the severity of the offence. These fines may apply to those who omit details in official documentation, rent without a licence, or attempt to rent by the room.

Transitional regime for existing licences

To adapt to the new regulation, the law sets different timelines depending on the type of licence:

• Licences before July 2018: These licences remain unchanged, but if the property changes ownership, a new application is required under the current law.
• Licences obtained between 2018 and 2 August 2024: These have a five-year adaptation period to comply with the new rules by 2030.
• New licences after 2 August 2024: Must comply immediately with all requirements and be renewed every five years.

What is the aim of this law?

The aim of this law is to balance tourism activity with residents' quality of life. With tourism reaching record figures, the goal is to prevent improper use of homes as holiday accommodations and promote fair competition among accommodations.

If you are considering renting out your property to tourists in the Valencian Community, make sure you comply with this new regulation to avoid fines. Do you have questions about how to apply these new rules to your home? Contact us for advice and to ensure a successful and legally compliant holiday rental.

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