The Spanish government is planning to hurry in new regulations to clamp down on seasonal rentals that have exploded in number since the introduction of the new Housing Law, with its attack on landlords.
Background
In 2023, Spain’s Socialist government, in coalition with hard-left groups including Sumar, introduced a new Housing Law that placed significant costs and restrictions on landlords engaging in long-term rentals, which prompted many to switch to the seasonal / mid-term rental market, known as alquiler de temporada, intensifying the housing crisis in the process.
When the government attempted to curb this surge in seasonal rentals, the effort was blocked in parliament by opposition votes. Now, the government and its left-wing allies are preparing to have another go at restricting the seasonal rental market, where landlords have found refuge from the 2023 Housing Law.
The government’s new plans to regulate seasonal rentals, which have been reported in the Spanish press, are outlined as follows:
1. Mandatory registration and unique identification numbers:
- A new “Single Digital Rental Window” will be established, requiring all short-term and seasonal rental properties to be registered and obtain a unique identification number.
- This will apply to rentals lasting less than a year, including seasonal, tourist and room rentals.
2. Enforcement and platform responsibility:
- Property portals and advertising platforms like Idealista, Fotocasa, Airbnb, and Booking will be responsible for ensuring that listed properties display the registration number, verifying compliance with the law.
- Portals will have to conduct random checks, inform landlords of the new procedures, and provide monthly data to the new Digital Window.
- Penalties for non-compliance will be applied through consumer and user protection laws.
3. Justification for seasonal rentals:
- Landlords will need to provide justification for signing seasonal rental contracts, such as for holidays, tourism, work, studies, or medical treatment.
- The Registry will cross-reference property characteristics with regional regulations to ensure compliance.
4. Alignment with regional regulations and resident rights:
- The national registry will allow regional governments to monitor compliance with their respective regulations on short-term rentals.
- The system will the into account the rules of Communities of Owners that prohibit short-term rentals in their buildings.
5. Aims to curb rental price increases and fraud:
- The government hopes these measures will reduce fraud and prevent landlords from using seasonal rentals to circumvent rent control measures under the Housing Law.
- This is intended to help stabilise the rental market and increase the availability of long-term rental properties.
- Government quote: The objective of the standard is to “combat the fraud that many citizens suffer, and contribute ultimately to the lowering of rental prices.”
6. Political landscape:
- The government is engaging with political parties like Catalonia’s hard-left separatists ERC to find solutions that respect regional autonomy.
- While there is general agreement on the need to regulate short-term rentals, different parties have varying approaches, leading to some pushback and rejected proposals.
7. Timeline:
- The Real Decreto is expected to be finalized by the end of 2024.
- Implementation is planned for January 2025, making Spain the first EU country to implement the EU regulation on short-term rentals.
