The autonomous region of Valenciana introduced on 8 August 2024 New holiday rental rules. This article discusses the main changes for holiday rentals in Costa Blanca.
Clarified definition of holiday rental
Holiday rental means: houses or flats that as a whole, regardless of type, ready-to-go are offered, for a fee, for a period equal to or shorter than 10 days.
This means it is a holiday rental as soon as you rent out a fully equipped house or flat for a period equal to or less than 10 days. Rental periods of 11 days or more are expressly excluded from holiday letting legislation.
Greater legal certainty by municipalities
Under the previous regulations, councils could assess on a case-by-case basis whether or not a property could be granted a rental licence - actually a registration of the property as a holiday home. Under the new legislation, municipal councils are given the powers to impose far-reaching restrictions, but on condition that there are clear criteria that are published in advance. That way, property investors will have more legal certainty at the time of purchasing a property.
A rental licence remains valid for a limited period of time
A rental licence will remain from the entry into force of the new regulations for Valid for 5 years. All existing licences therefore still have a term of five years, after which they must be renewed. The conditions of renewal depend on when your licence was granted.
As a result, after the expiry of the validity period, you will have to obtain permission from the municipality again. In addition, you may have to revisit whether co-owners' association has not imposed restrictions in the meantime. If so, you will not be able to renew your rental licence.
Houses with letting licences that are not let for one year will be removed from the register. Houses that are not let within two months of applying for registration of a new rental licence will also lose the rental licence.
A rental licence no longer transfers with the owner
Because a property is registered as a holiday home, it was possible to transfer a rental licence on sale. After all, you are buying a property registered as a holiday home. This principle is now set aside.
From the entry into force of the new legislation, a rental licence will be linked to the owner. Specifically, therefore, a rental licence will no longer be transferable by a new owner. The new owner will have to go through the procedure for obtaining a rental licence again.
Communicating cadastral reference
In your contracts with tenants, you will now have to provide the cadastral reference of the property. All owners of a property with a rental licence have time until 31 December 2024 to pass on the cadastral reference to the registry. Properties that have not provided a cadastral reference after this will lose the rental licence.
If no cadastral reference is available, for example in the case of a recent new construction, the 'código registral único' can be used.
