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Rental Licences in Spain: What UK Buyers Need to Know Before Buying a Holiday Let

Rental Licences in Spain: What UK Buyers Need to Know Before Buying a Holiday Let

If your investment case depends on short-term rental income, the licence situation must be your number one due diligence priority. Here's the complete picture for 2026.

Last updated: February 2026

M

MUNDO Research Team · Vetted by Costa del Sol property professionals

Published April 2025 · Updated February 2026 · 5 min read

The days of quietly operating an unlicensed Airbnb in Spain are over. In December 2025, Spain fined Airbnb €64 million for advertising more than 65,000 holiday rentals without proper licences. Since July 2025, every short-term rental must carry a nationally verified registration number — the VUD ID — and platforms will not list properties without one.

If you're buying a property on the Costa del Sol expecting to do short-term lets, this is the most important article you'll read.

What You Need: The VFT Licence

In Andalucía, it's called a VFT — Vivienda con Fines Turísticos. Other regions use different names (VUT in Catalonia, ETV in the Balearics), but the concept is the same: legal authorisation to let a property on a short-term basis to holidaymakers. Without one, you cannot legally rent for stays under 31 days.

Since 1 July 2025, you also need a VUD ID (Ventanilla Única Digital) — a centralised national registration number linking your regional licence to ownership, address, and tax data. Without it, Airbnb, Booking.com, and Vrbo will not allow your listing to go live.

The Moratorium Situation

Here's where it gets complicated. Multiple regions have frozen or restricted new licences:

RegionStatus (2026)
Málaga cityFull 3-year moratorium (August 2025). No new tourist dwelling registrations anywhere in the municipality
Andalucía (wider)Decree-Law 1/2025 (February 2025) requires municipal authorisation first. Each town can now impose its own freeze
Barcelona / CataloniaNo new licences. Plans to abolish tourist housing entirely by 2028
Balearic IslandsMoratorium since 2022 (ends 2026). Apartment lets banned in Palma and Ibiza
AlicanteTwo-year moratorium from December 2024 until January 2027
MadridFreeze on new licences until 2026
Canary IslandsFive-year pause on new holiday rental authorisations (Law 6/2025, December 2025)

The Costa del Sol Specifically

This is what matters most for MUNDO's audience. In Andalucía, the February 2025 decree gave every municipality the power to suspend new registrations. Málaga city has used it aggressively — a full moratorium since August 2025. Other Costa del Sol towns are making their own decisions.

Between January 2024 and August 2025, the Junta de Andalucía cancelled 10,266 tourist rental registrations, including approximately 3,800 in Málaga province alone.

The Good News: Existing Licences Transfer

In August 2025, Spain's Directorate-General for Legal Security confirmed that tourist rental licences in Andalucía are tied to the property, not the owner. This means:

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  • A registered licence remains valid after a property sale
  • The licence transfers automatically with the property
  • The new owner just needs to report the change of ownership to the Tourism Registry

Licences obtained before 3 April 2025 are also grandfathered against the new community approval requirement (see below).

The Catch: New Licences Need Neighbour Approval

Since April 2025, any new tourist licence in a residential building requires approval from 60% (3/5) of the community of owners. Without it, the community can prohibit or take legal action to stop the tourist activity. Communities can also levy up to 20% extra on shared expenses for apartments operating as tourist rentals — even those with existing licences.

The Risk: Fake Licence Claims

As licences become scarce and more valuable, some sellers are marketing properties as "having a licence" when they don't. Before purchasing:

  • Verify the licence number directly in the Junta de Andalucía's Tourism Registry
  • Check HOA meeting minutes for any votes restricting tourist rentals
  • Review the building's estatutos (statutes)
  • Confirm with the local town hall that the property's location remains eligible
  • Hire an independent lawyer — not the one the agent recommends

If You Can Still Apply: What's Involved

In municipalities that haven't imposed a moratorium:

  1. Municipal authorisation — Submit a declaración responsable for change of use to your town hall (new requirement since March 2025)
  2. Documentation — ID/NIE, cadastral reference, proof of ownership, First Occupation Licence, Energy Performance Certificate, property layout details, tax registration
  3. Submit to Junta de Andalucía Tourism Registry — Declaración responsable declaring compliance
  4. Receive VFT number
  5. Register in national VUD system

Timeline: 1-3 months. Registration is free, but real costs (LPO, energy certificate, insurance, lawyer/gestoría) total €1,000-2,000.

What Properties With Licences Are Worth

No published study gives an exact premium percentage, but the market dynamics are unmistakable. With moratoriums restricting new supply while demand stays strong, existing licensed properties have what analysts call a "regulatory moat." Costa del Sol agents consistently report that verified, transferable tourist licences command a 15-30% premium over comparable unlicensed properties, depending on location and type. In Málaga city, where new licences are impossible for three years, the premium is at the higher end.

The Alternatives

Medium-Term Lets (1-11 Months)

This is the emerging Plan B. Lets of 11 days to 11 months for a stated temporary purpose — digital nomads, corporate relocations, winter sun visitors, students — are legally permitted without a tourist licence and without community approval. The contract must specify the reason for temporary occupation. Yields sit between long-term and short-term rental levels. This is increasingly popular and carries zero licensing risk.

Long-Term Rentals

No licence needed. But minimum contract duration is 5 years (individual landlord) or 7 years (corporate), with automatic renewals. Rent increases are capped. Much stronger tenant protections. Lower yields but zero regulatory exposure.

The Fines

If you rent without a licence:

  • Andalucía: Up to €150,000. Typical range: €2,000-18,000
  • Catalonia: Up to €600,000
  • Balearics: Up to €400,000
  • National level: Up to €60,000 for missing VUD registration

Enforcement has escalated dramatically. Digital traceability through the VUD system means authorities can cross-reference platform listings against the national registry automatically. This is no longer a grey area.

If your investment case depends on short-term rental income, the licence situation must be your number one due diligence priority. Find a property that already holds a valid, transferable VFT licence — and verify it independently before purchase.

Sources: SpainEasy, Spanish Property Insight, CostaLuz Lawyers, DM Properties, Directimo, and the Junta de Andalucía. Data current as of February 2026.

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Disclaimer

This guide is for informational purposes only and does not constitute legal, tax, or financial advice. Property laws and tax regulations change frequently — always consult a qualified Spanish lawyer and tax advisor before making any property purchase decisions. Data sourced from Spanish Land Registry, Idealista, and MUNDO partner network. Last verified: March 2026.

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