Home » Spanish Supreme Court empowers Homeowners’ Associations to ban tourist rentals in their communities

Spanish Supreme Court empowers Homeowners’ Associations to ban tourist rentals in their communities

Tourists in Malaga city

This briefing analyses a landmark ruling by Spain’s Supreme Court, granting residents’ associations the power to prohibit holiday homes within their buildings. The decision aims to address the proliferation of tourist rentals and their impact on residential communities, particularly in tourist hotspots like Malaga.

Most Important Points:

  • Three-Fifths Majority Rule: The Supreme Court ruled that a three-fifths majority vote within a Community of Owners is sufficient to enact a ban on holiday homes on the premises . This overturns the previous ambiguity surrounding the interpretation of Article 17.12 of the Horizontal Property Law (LPH) and establishes a clear legal precedent.
  • Curbing Tourist Accommodation Proliferation: This ruling is seen as a significant step towards controlling the rapid increase of holiday rentals, particularly in areas grappling with housing crises. The court acknowledged the need to prioritise residential rentals and address affordability issues exacerbated by the prevalence of tourist accommodations.
  • Addressing Residents’ Concerns: The court recognised the negative impacts holiday rentals can have on residential communities, including noise complaints, increased wear and tear on building facilities, and a diminished sense of community.

According to the ruling, published here, “The development of an activity of this kind generates nuisance and damages…such as those expressed by the president of the defendant community of neighbours and which social reality confirms, especially in areas with a high incidence of tourism, where leisure is difficult to reconcile with the rest of the occupants of residential dwellings.”

  • Legal Justification: The court’s decision rests on the principle of balancing private interests with the general welfare. The judgment asserts that residents’ associations hold the legal right to impose restrictions on property usage, provided they are implemented in accordance with the law and respect constitutional rights.
  • Impact and Implications: This ruling is anticipated to have a substantial impact on the landscape of tourist rentals in Spain. It empowers residents to regain control over their living environments and provides legal clarity for future disputes. The decision is particularly relevant for areas with a high concentration of holiday homes, such as Malaga, where the debate over their regulation has been particularly contentious.

Unresolved Issues:

  • The ruling left the question of retroactive effects open, meaning its applicability to past disputes remained unclear. It has since been confirmed that the ruling is not retroactive, meaning that “any community agreement to ban tourist apartment applications will only be able to affect newly-registered tourist apartments, not those already registered” (Source: Sur in English).

Conclusion: This landmark decision marks a turning point in the regulation of holiday rentals in Spain. By empowering residents’ associations, the Supreme Court aims to mitigate the negative consequences associated with the proliferation of tourist accommodation and promote a more balanced and harmonious living environment for all residents. However, the long-term implications of this ruling, particularly regarding its retroactive application and influence on the tourism sector, remain to be seen.

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