Buying a holiday home in Spain and then renting it out for holiday lettings is not as easy as it used to be. Make sure you are aware of the new laws so you don’t receive a hefty fine…

Spain has always been a popular country for British expats to buy a second home in, and having the option to offset investment costs against a holiday rental service appeals to many. However, rental laws in Spain are changing and vary across the regions, so make sure you know what is required before making your investment.

Most regions require properties to be licensed and those that don’t, overseas buyers don’t typically buy there (such as in Rioja and Extremadura). It is best to make sure you have everything in place before you rent out your property otherwise you will face large fines.

Andalucia is the latest region to introduce holiday rental licenses. To qualify, the property has to fulfil certain requirements, such as having central heating and air-conditioning. This is costly and can be hard to install in many properties if it hasn’t been previously.

If you are looking to buy and rent in Barcelona, you can only rent out properties that are already licensed. So if you are looking to buy here, add this to you list of criteria.


Once you have decided which area of Spain you would like to buy in, make sure you take some time to look over the admin side of renting a property and what you need for your region. You must have adequate buildings and contents insurance and be paying the correct tax (you must declare your rental income and pay the appropriate income tax to the Spanish tax authorities), but there could be region specific requirements you need to be aware of.

It is possible to offset mortgage interest costs and expenses as an allowable expense in the UK and Spain, but you must document income and expenditure with proof (an HMRC certificate of tax residency in the UK), and submit this to the Spanish tax office.


Over the last few months property prices in Alicante, Granada and Seville have risen by over 7%, while traditionally popular regions, such as the Balearics and Catalonia, have seen a decrease, which is thought to be due to the fall in demand because of the new holiday letting laws.

So if you are buying a property in Spain in the next year or so, make sure you are up to date with the holiday letting law that is relevant for you. Whether you intend to rent out your property or not, keep this in mind as it could impact how you use your property in the future.


View some of our properties for some inspiration.











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