Gecko Towers
For many prospective owners of a property on the Costa del Sol the idea of securing short term rentals is vital to your property owning business plan. The aim being, primarily to assist with monthly costs like mortgage repayments and Community Fees (that may be billed quarterly) and annual costs such as Basura (Refuse collection) and IBI (equivalent to the English “Council Tax” or “Rates”).
Aside from checking that the terms of the mortgage (secured on your Costa del Sol property) doesn’t prevent short or long term rentals, what else do you need to consider to ensure that you can use the full reach of AirBnB or BookingdotCom to secure tenants and rental income?
Here you will certainly require the advice and services of a trusted, local and experience qualified Spanish Lawyer (Abogado) to evaluate the position at the urbanisation where your proposed purchase is located. Hand in glove with your Abogado what needs to be considered and trucked off to ensure you can do what you want to do?
Check the Property’s Legal Status
Before signing any contract, your Abogado should confirm that the property:
• Has a valid occupancy licence (Licencia de Primera Ocupación or LPO) — without it, you can’t register for tourist rentals with the Town Hall of the municipality where the property is located.
• Is not in a community that bans tourist lets. Many communities of owners (comunidades de propietarios) have voted to restrict or prohibit them.
Review the Community Statutes
Ask your Abogado to obtain and review the estatutos de la comunidad and the most recent meeting minutes. It should be noted that a simple majority of owners can now vote to restrict tourist rentals.
Existing Tourist License
If the property you are interested in buying has an existing tourist license what is the impact for you? Do you take over the license simply by becoming the new owner?
In Spring 2025 new legislation was introduced that had the impact of prohibiting the transfer of tourist licences when a property changes ownership. However, in very recent and exciting news, Andalucia, and this is yet to be fully corroborated and needs to be checked by your Abogado, has confirmed that if the property you are proposing to purchase already has a tourism license then you will acquire the benefit of that license upon purchase. The License appears to pass with the title to the property as it is not personal to the previous owner or new owner. It seems that the even if the Community of Owners seeks to ban short term touristy rentals then you will be able to enjoy the license granted.
So this would appear to overrule the previous position, that even if the seller of the property had such a license the new purchaser would need to reapply for such a License. This is amazing news for those keen to be involved with the short term rentals market.
Register for a Tourist License
Once you own the property and it qualifies:
• Apply for a VUT number (Vivienda de Uso Turísticos) through the Junta de Andalucía. This License is required for short-term rentals in Andalucia and allows you to legally rent your property to tourists.
• You’ll need: your title deed, LPO, ID, proof of ownership, and compliance with safety and data regulations (air-conditioning, complaint forms, etc.).
Be Aware of Municipal Variations
Local town halls (especially Marbella, Málaga, Estepona, and Benahavís) may impose additional conditions — for example registration fees.
Always Get Legal Confirmation Before You Buy
A trusted, bi-lingual and experience-qualified Spanish property Lawyer (Abogado) should include these checks in the due diligence process, alongside confirming the property’s legality and tax implications.
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Should you be interested in discussing the process involved in buying a property on the Costa del Sol, we would be delighted to assist you. We have an experience-qualified and best of breed Associates Network comprising professionals focused on the western Costa del Sol (Malaga to Tarifa) property market. Their services include property search, mortgages, legal and tax services, visas, surveying, insurance and currency brokerage.
We have done the leg work, testing the quality of our Associates Network and now feel confident in recommending their services to you.
Please note that our posts are for general interest. There is no substitute for proper advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law. Nothing contained in this article should be seen or taken as legal, tax or financial advice and cannot be relied upon as such. Neither the writer nor the publisher accepts any responsibility for liabilities arising as a result of reliance upon the information given. All details have been reasonably fact-checked and all efforts have been taken to ensure that facts are accurate as at the date of publication.
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My details: Mark FR Wilkins, during usual business hours on +34 600 343 917 or e-mail me at mark@therightsgroup.com
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