New Rules for Tourist Rentals in Comunidad Valenciana: What You Need to Know

14.08.2024

The Comunidad Valenciana has introduced new regulations for tourist rentals, aimed at enhancing the quality and safety of vacation accommodations and combating illegal rental practices.

More Legal Certainty Through Municipalities

Previously, municipalities could decide on a case-by-case basis whether a property could obtain a rental license. Under the new law, local councils can impose significant restrictions, provided that clear criteria are published in advance. This gives real estate investors more legal certainty at the time of purchase.

What Qualifies as Vacation Rental?

Vacation rentals are defined as properties or apartments that are fully furnished and available for rent for a period equal to or less than 10 days. Rentals of 11 days or more are explicitly excluded from vacation rental legislation.

Key Changes for Tourist Rentals:

Key Lockboxes Prohibited: The use of key lockboxes at the entrance of a rental property is no longer allowed.
Mandatory Reception Service: Landlords must now provide a reception service to personally welcome guests.
License Renewal: Existing rental licenses must be renewed every five years to ensure compliance with the latest quality and safety standards.
Non-Transferable Licenses: Rental licenses are now tied to the property owner and are not transferable upon sale. New owners must apply for a new rental license under the current regulations.
Stricter Penalties: Violations of these new rules can result in fines of up to €600,000.
Advanced Inspections: More inspections will be conducted, using artificial intelligence (AI) to detect illegal rentals.
Cadastral Reference Requirement: Rental contracts must now include the property's cadastral reference. Owners have until December 31, 2024, to submit this reference to the register, or risk losing their rental license. If no cadastral reference is available, such as in new constructions, the 'código registral único' can be used.

Transition Arrangements for Existing Rental Licenses

There are three transition arrangements for existing rental licenses:

For properties before July 1, 2018: These retain their registration under the original conditions.
For properties between July 7, 2018, and the enactment of the decree: These remain registered but must meet new quality standards within five years and renew their compliance declaration by 2030.
For new properties after the decree: These fall under the new rules and must renew their compliance declaration and urban planning report every five years, along with a certificate from their Homeowners' Association.

These measures are part of a broader effort to make tourism in the Comunidad Valenciana more sustainable and safe. Landlords are encouraged to fully understand these new regulations to avoid potential penalties.