The Spanish are increasingly turning against tourism. Despite the significant contribution tourists make to the Spanish economy (12.8% of national GDP in 2023), there is a growing number of legislative initiatives aimed at curbing the tourist influx.
At the end of December, lawmakers introduced a small amendment to the Horizontal Property Law, the legislation that provides a framework for how co-owners in an apartment complex or villa park may manage their joint finances and rules for communal living.
Until April 3, 2025, it was not possible for an HOA to outright ban holiday rentals, but starting from that date, it will be explicitly permitted. Previously, HOAs could only limit holiday rentals or impose conditions. From April 3, 2025, they will have the authority to completely ban holiday rentals within the community.
Additionally, the HOA retains the right to increase the contribution to communal costs by up to 20% for properties used for tourist rentals, to compensate for the increased usage of communal spaces and services.
Only a 60% majority vote is required for this decision to be adopted, and it must be registered with the Property Registry (Registro de la Propiedad) before taking effect. A small silver lining: the new rule cannot be applied retroactively. Owners who were already renting out their properties prior to the law change can continue to do so. However, some argue that if such holiday rentals do not comply with regional or municipal laws, the HOA may still have grounds to ban those rentals.
This last point is likely to become the main source of legal contention. In the article about the new regulation in, for instance, Valencia, we already raised concerns about the exact scope and meaning of the term “tourist rental.” In the Valencia region, the regional government considers this to be limited to stays of up to 10 days, while some municipalities claim they can stretch this definition to 60 days — such as the city of Valencia.
There will likely also be much debate regarding existing rentals by owners who bought their property before the law took effect and who are still allowed to rent out. To what extent can an HOA demand that such an owner complies with national, regional, and municipal regulations? The first question to consider is what authority an HOA has to take enforcement actions — which is, in fact, quite limited. Still, within those narrow powers, they tread on thin legal ice when trying to act against an owner. The considerable legal uncertainty surrounding the interpretation of all these laws makes any action difficult and risky. An HOA or municipality might end up liable for costs and damages if they make the wrong call.
In short, homeowners who purchased a property with the intent of renting it out to tourists but who have not yet registered for tourist rental, could be in for an unpleasant surprise if 60% of the co-owners vote to ban holiday rentals. On the other hand, the actual enforcement of these new rules appears questionable. Even owners who currently have a rental license may be affected if that license is not renewed after five years. In summary, here’s what it boils down to:
What can the HOA do?
- Prohibit tourist rentals with a 60% double majority — meaning both 2/3 of the owners and 2/3 of the financial contribution.
- Increase communal cost contributions by up to 20% for owners who rent to tourists.
- Report disturbances or illegal activities to authorities.
- Take legal action in case of rule violations.
What can the HOA NOT do?
- Determine whether a rental is legal.
- Impose penalties or unilaterally stop rentals.
- Block activities.
Who determines whether a rental is legal?
- The regional government (Tourism or Housing departments) has exclusive authority, but courts have the final say.
- The regional government can conduct inspections, issue fines, or revoke licenses.
- Complaints must be submitted to the local or regional authorities.
- Some municipalities also claim certain powers in this regard.
Roeland van Passel