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Buying a holiday rental apartment in Spain: what to check first

Holiday rentals

For some buyers, holiday rental potential is an important part of choosing a property. But buying an apartment near the beach does not automatically mean you can list it on a booking platform. Whether tourist use is permitted depends on regional regulations, municipal restrictions, building rules and registration requirements, among other factors.

Check the address before running the numbers

Check the exact address, the property's permitted use, whether the necessary approvals can be obtained and whether the intended use complies with local planning rules. A seller may describe it as an “ideal investment”, but that does not guarantee permission for holiday rentals. Do not base your purchase on projected income until a lawyer has checked the current restrictions.

Costa Blanca: rules in the Valencian Community

In the Valencian Community, regulations for viviendas de uso turístico, or tourist-use properties, cover registration conditions and local restrictions, among other requirements. The 2024 reform provided for a five-year registration validity period in certain circumstances, along with additional requirements. Regulations and their application can change, so check the current legal position in the specific municipality before buying.

Owners’ association rules and approvals

Even if the property appears suitable, review the owners’ association's statutes and resolutions, along with any approvals required under current law. Separately, check the national registration number requirements for listings published on platforms. Registration at one administrative level does not automatically replace other permissions.

Real returns, not just nightly revenue

Calculate the full costs: purchase taxes, financing, community fees, IBI property tax, utilities, insurance, cleaning, guest management, platform commissions, renovations and vacancy periods. Prepare conservative, baseline and optimistic scenarios rather than multiplying the highest nightly rate by 365 days.

Have an alternative plan

Before deciding, consider whether the apartment would also work for personal use or long-term letting if holiday rentals were not possible or proved less profitable than expected. A property with flexible uses reduces your dependence on a single business model.

Conclusion

Holiday rentals can be part of your buying strategy, but that strategy should be based on legal checks and cautious calculations. First establish whether holiday letting is legally possible at the specific address; only then assess the potential income.

Frequently asked questions

Is it worth hiring an independent lawyer?

Yes. Having the documents and contracts checked protects the buyer's interests.

Are the rules the same throughout Spain?

No. Some procedures and taxes depend on the region and municipality.

Can an apartment near the beach automatically be used for holiday rentals?

No. Permission depends on regional regulations, municipal restrictions, building rules and registration requirements, among other factors. Check the position for the specific address before buying.

How should you assess holiday rental returns?

Include all purchase and running costs, rental management and vacancy periods. Prepare conservative, baseline and optimistic scenarios rather than applying the highest nightly rate throughout the year.

Sources and references

For information only: not legal or tax advice, or a guarantee of returns. Confirm the terms of your transaction with an independent professional.

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