Spain Tightens Rules on Second Home Rentals, Impacting Foreign Property Owners

Shock reform in Spain? As rents are skyrocketing in the country’s major cities and the housing crisis is worsening due to the impact of rentals on the real estate market, the Spanish government is tightening the rules regarding the rental of second homes. Since April 3rd, any owner wishing to rent out their apartment must obtain the agreement of 60% of the co-owners’ association in accordance with the new legislation regulating the rental of second homes. This is causing concern for some Moroccans who rent out their second homes.

Are these concerns justified? The impact of the new law remains limited for the majority of owners, according to HLN. For owners who already hold a license and comply with current standards, no changes are on the agenda. As for potential buyers in a building mostly composed of second homes, they are guaranteed a rental license. They will almost certainly be able to obtain the agreement of the co-ownership. Things become more complicated when the residence has a majority of retirees seeking peace and quiet, or permanent Spanish residents, "which remains rare in tourist areas."

In anticipation, real estate developers have launched projects where a rental license is guaranteed, in order to reassure foreign buyers. This is a well-established practice in Tenerife. According to real estate expert Bjorn Cocquyt, "it’s ideal for those who want to invest without worry, even if it means a certain loss of income and freedom."