New Rental Property Legislation on the Costa del Sol: What Property Owners and Investors Need to Know

Are you a property owner or investor in Costa del Sol? The rental landscape is shifting dramatically in 2025 due to new Andalusian laws regulating short-term rentals. Understanding these changes is crucial to protect your investment, stay compliant, and make the most of future opportunities.

In this blog post, we’ll break down the latest rental laws, what they mean for properties, and how they’re shaping the future market — including insights on property prices and investment strategies.

New short-term rental regulations in Costa del Sol — guiding real estate investors and property owners.

What Are the New Rental Laws?

Effective from April 3, 2025, new rules regulate tourist rentals (short-term holiday lets) across Andalusia, including the Costa del Sol:

• Tourist Rental License (VUT) Mandatory: Every property rented short-term must have a valid tourist rental license registered with regional authorities.

• Community Approval Required: If your property is part of a homeowners association (community), a 3/5 majority vote is necessary to allow short-term rentals.

• Community Restrictions and Fees: Homeowner communities may restrict or prohibit holiday rentals and can charge extra annual fees (up to €20) on renting owners.

• Municipal Caps on Licenses: Local councils can limit the number of licenses, often prioritizing detached houses or apartments with private entrances.

• Centralized Digital Registry: From July 1, 2025, all licensed tourist rentals must be registered in a regional digital system.

Who Does This Affect?

• Properties in Communities: Need community approval plus tourist license.

• Independent Homes (No Community): Only need the tourist rental license.

• Existing Licenses (Before April 3, 2025): These licenses are grandfathered in but may still face community fees or new regulations.

Pros and Cons

Pros:

• Clearer rules create a professional, sustainable rental market.

• Protects communities from disturbances and overcrowding.

• Enhances value for properties legally registered to rent.

Cons:

• More red tape, including community votes and license applications.

• Possible bans or extra fees from communities.

• Risk of fines (up to €600,000) for non-compliance.

• Potential limits on new licenses in popular areas.

How Will the Legislation Impact Property Prices?

Understanding the price impact is vital for both owners and investors:

• Higher Demand & Prices for Licensed Properties: Homes with valid tourist licenses, especially independent houses and apartments in rental-friendly communities, are becoming more attractive. These properties promise legal, hassle-free rental income, which typically commands a premium.

• Price Pressure on Properties in Restrictive Communities: Apartments or units in communities that ban or heavily restrict rentals may see decreased demand and stagnant or declining prices. These properties lose some of their investment appeal if short-term rental income is limited.

• Growth in Medium-Term Rentals: Many owners may turn to renting for longer periods (1–11 months) to avoid the tourist license process. This trend could stabilize prices in urban markets with strong demand for medium-term rentals from students, professionals, and digital nomads.

• Market Stabilization: By weeding out illegal or unmanaged rentals, the legislation is expected to foster a more stable and sustainable property market in the medium to long term.

What Should Property Owners and Investors Do?

• Review your community’s rules regarding short-term rentals before buying or renting out.

• Prioritize independent homes or communities supportive of tourist rentals for investment.

• Apply for or renew your tourist rental license (VUT) and ensure registration in the centralized digital system by July 2025.

• Engage with your homeowners association early to seek approval and avoid conflicts.

• Have alternative rental strategies, like medium or long-term leasing, if short-term licensing is not feasible.

• Consult with legal and real estate experts familiar with Costa del Sol regulations for personalized guidance.

Summary: Key Takeaways for Costa del Sol Real Estate Investors

Topic	What You Need to Know
New Rental Laws 2025	Mandatory tourist licenses and community approvals for short-term rentals.
Impact on Property Prices	Price growth expected for licensed and independent homes; potential stagnation in restrictive communities.
Investor Advice	Choose properties with clear rental rights; diversify rental strategies.
Market Outlook	A more regulated, stable, and sustainable rental market ahead.

Final Thoughts

The new rental regulations in Costa del Sol are a game changer for property owners and investors. While they introduce some challenges — including increased bureaucracy and possible community restrictions — they also create an opportunity to professionalize the rental market and enhance the value of legally compliant properties.

If you want to stay ahead in this changing landscape and make smart investment decisions, Nordic Wave Real Estate is your trusted local partner. We help you navigate these regulations and find the best properties to match your goals.

📞 Contact us today for expert advice and personalized support!