Spain: Landlords operating unlicensed and black market short-term holiday rentals face having fines imposed of up to €600,000 as part of incoming regulations in the Spanish region of Valencia.
The measure is yet another move by authorities in Spain to regulate the sector and combat perceived ‘over tourism’, for which they believe short-term rentals are a significant driver.
It comes as the number of short-term rental listings in the Valencia region have skyrocketed in recent years, as have the rental prices. Tourism authorities currently estimate that there are currently more than 50,000 illegal listings in the region, driven by both the desire for local landlords to earn more income and foreign expatriates looking to capitalise on a booming market.
Meanwhile, short-term rental analytics startup Airbtics detailed that there were 9,128 active listings in Valencia as of 15 April this year, with neighbourhood such as Ciudad de las Artes y las Ciencias, La Lonja de la Seda and Valencia Cathedral reporting the most significant demand for short-term stays.
The existing legislation already requires short-term rental property owners to obtain a tourist licence through the Valencian Tourism Registry, while they must also submit essential information including property details, the intended property use, quality and safety standards compliance, proof of ownership, property floor plans, energy efficiency certificates and proof of insurance.
In June, STRz reported how the regional government in Valencia was planning to implement stricter controls on short-term rentals this summer by banning licences for properties after they have been sold. In an effort to regulate unlicensed housing, Tourism Minister Nuria Montes of the right-wing Partido Popular-Vox pledged to carry out more property inspections using “innovative measures”, for example deploying artificial intelligence [AI] and collaborating with local property management companies and agencies to address the issue.
The minister also insisted that local councils would be granted “significant” powers to get to the root of the problems however they see fit.
Alex Penades, head of strategy at Valencia-based property management software Avantio, said: “This new legislation is really welcome. It brings short-term rentals in line with other parts of the hospitality industry, and demonstrates how the sector has come of age. The vast majority of property managers and short-term rental owners will support the changes, because they care about the reputation of the sector, which wants to be a byword for quality and professionalism.
“Valencia’s approach stands in marked contrast to Barcelona’s, where policymakers have been much more aggressive, proposing to ban short-term rentals altogether in a few years’ time. It means that, while Barcelona will become less attractive to international tourists and business travellers, Valencia stands to climb the destination rankings.
“The regional government of Valencia, the Generalitat, does well in recognising the maturity and value of short-term rentals to local economies, and regulating them fairly, rather than copying Barcelona’s more draconian decree. Proposals to require property managers to give guest information to the authorities and ensure basic safety are important not just for guests but also for communities. The decision to give the power to individual city councils to limit the number of rentals is also a positive choice, as each city has different needs. What’s right for a coastal town may not be appropriate for a big city. This will avoid the unintended consequences that a one-size-fits-all approach can produce.
“In the 20 years Avantio has been in the short-term rental market in Valencia and further afield, we’ve seen huge change, growth and development. We fully support initiatives that promote responsible and sustainable tourism, and we are prepared to assist our clients in complying with the new regulations,” he added.
Penades is referring to the leftist Socialists’ Party of Catalonia’s plan to introduce a ban on all short-term rentals for tourists in Barcelona by late 2028, which was first announced in June and has led to extensive debates across the tourism industry since.
Similarly to Valencia, Madrid City Council announced a temporary suspension on granting new holiday rental licences in the capital in April – a suspension which looks likely to hold until 2025.
At the time, José Luis Martínez-Almeida, the mayor of Madrid, said that the suspension would take place “with immediate effect”, while the city works on the approval of a modification to the General Plan of Urban Development of Madrid.
The goal of the General Plan is to “confront” issues around housing in Madrid, while at the same time “balancing the accommodation market in the city” to avoid “residential desertification”.
