Short, Temporary & Long-Term Rental Laws in Spain for Owners

Investing in a property on the Costa del Sol offers fantastic opportunities, not only for personal enjoyment but also for generating income through rentals. However, before you start renting out your home, it’s essential to understand the legal framework in Spain.

Spanish rental law distinguishes clearly between short-term holiday lets, temporary lets, and long-term rentals. Understanding the differences – and staying compliant – is essential to avoid penalties and to maximize returns.

Table of Contents

Short-Term Rentals in Spain (Holiday Lets)

Short-term rentals are aimed at tourists and holidaymakers, usually for days or weeks.

Tourist Licence: Required in Andalusia through the Registro de Turismo de Andalucía. A VFT number must appear in all adverts.
Requirements: Properties must meet certain standards such as air conditioning, heating, first-aid kit, guest information, and a complaints book.
Taxation: Rental income must be declared, and non-residents are taxed at a flat rate. VAT (IVA) may apply in some cases.
Occupancy: Guest capacity is limited based on property size and safety rules.

❗ Renting without a licence can lead to heavy fines.

Temporary Lets (Arriendos de Temporada)

A temporary let is when a property is rented for a specific, limited period, but not as a tourist rental and without the intention of being the tenant’s permanent home.

Typical Use: Professionals on work assignments, students, digital nomads, or families relocating temporarily.
Contract Length: Can range from a few months up to 11 months, but must specify the reason for temporary occupation.
No Tourist Licence Needed: Unlike holiday lets, you don’t need a VFT licence, as these contracts are not aimed at holidaymakers.
Legal Framework: Governed by the Spanish Civil Code rather than the Urban Leasing Law (LAU). This gives landlords more flexibility.
Tenant Rights: Tenants do not enjoy the extended protections of long-term rental contracts.

This option can be ideal if you want to avoid the strict rules of holiday rentals while maintaining flexibility.

Long-Term Rentals in Spain

Long-term rentals (usually 12 months or more) fall under the Urban Leasing Law (LAU).

Tenant Protections: Strong legal rights for tenants, including automatic renewal up to five years (seven if the landlord is a company).
Rent Increases: Capped and linked to the Consumer Price Index (IPC).
Deposit: One month’s rent is legally required and must be deposited with the housing authority.
Early Termination: Limited rights for landlords to recover the property before contract expiry.

This type of rental provides stable income but less flexibility for owners.

Key Differences Between Rental Types

Aspect	Short-Term (Holiday Lets)	Temporary Lets (Seasonal Contracts)	Long-Term Rentals
Licence Required	Yes (Tourist Licence)	No	No
Length of Stay	Days to weeks	1–11 months	12 months+
Tenant Rights	Guests only, no tenancy rights	Limited, more flexible	Strong, under LAU
Purpose	Tourism / holidays	Work, studies, relocation	Permanent housing
Flexibility	High (seasonal, variable rates)	Medium (specific purpose contracts)	Low (long-term protection)

Final Thoughts

Spain offers three main rental categories – short-term, temporary, and long-term – each with its own legal framework and benefits. Short-term holiday lets can be highly profitable but require licensing and strict compliance. Temporary lets provide a flexible middle ground, while long-term rentals deliver stable income with strong tenant protections.

Are you interested in real estate services on the Costa del Sol?

At Keys Properties Group, we offer a range of real estate-related services such as after-sales support, legal services, home staging, property maintenance, and mortgage services.

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At Keys Property Group, we help property owners on the Costa del Sol choose the right rental strategy, handle legal compliance, and maximize returns on their investment.