The complete guide to renting out property in Spain: rules and tips

Renting out your property in Spain is an attractive option, but it's essential to be fully aware of the rules and requirements. Regulation of holiday and short-term rentals has shifted considerably over the past two years — including a new national registration system that has since been largely rolled back. Below is a complete, up-to-date overview of the rules, taxes, permits and tips for both short- and long-term rentals in Spain.

1. Different types of rental: long-term vs. short-term

Long-term rentals offer stability and protection for tenants. This type of rental usually requires contracts of at least one year. Until the end of 2024, a legal cap of 3% applied to annual rent increases. Since January 2025, that fixed percentage has been replaced by the new Rent Update Index (Índice de Referencia de Arrendamientos de Vivienda - IRAV), which is mandatory for the annual indexation of leases signed under the Housing Law of 25 May 2023. The IRAV always takes the lowest of inflation, core inflation and an adjusted average, and stood at around 2.28% in January 2025 and around 2.32% in January 2026. For long-term rentals, the property must also be offered in habitable condition, including basic amenities such as hot water and heating.

Short-term rentals, often for holiday lets, can generate higher income, especially in tourist hotspots such as the Costa Blanca and Costa del Sol. However, this type of rental requires a tourist licence in most regions, and landlords must meet specific requirements, such as providing bedding, towels and safety equipment like a fire extinguisher. In cities such as Barcelona and in the Balearic Islands, the rules remain particularly strict, and obtaining a new tourist licence is often nearly impossible due to restrictions aimed at curbing overtourism and nuisance.

2. Tourist rental registration in 2026: what's changed?

From 1 July 2025, Spain operated a mandatory national registration system (the so-called Registro Único, introduced via Royal Decree 1312/2024) for all holiday and short-term rental properties. Owners had to apply for a registration number, which was checked and validated within 15 days by the Registradores de la Propiedad y Mercantiles de España, and which had to be renewed annually along with a summary of all rental agreements signed that year.

This national registry proved short-lived: on 20 May 2026, Spain's Supreme Court (ruling no. 620/2026) declared the Registro Único void. The reason: the court ruled that the Spanish state lacks the authority to impose a national registry that overrides the regulations of the autonomous regions — regulating tourist rentals is a regional competence. In practice, this means owners of holiday properties are no longer required to obtain the national registration number or file the annual return with the central registry.

This is not a free pass, however: regional licences and registers (in the Comunidad Valenciana, Andalusia, the Balearic Islands, the Canary Islands, Catalonia and elsewhere) remain fully in force, as do tax obligations and the requirement to register guests with the authorities. Platforms such as Airbnb, Booking.com and Idealista also remain obliged to share rental data through the digital single-window ("ventanilla única") system — only the national registration number itself has been scrapped.

For landlords, this mainly means: focus on your regional licence, not the now-defunct national registry. In practice this includes:

• Tourist licences: rules differ by region. In the Balearic Islands and cities such as Barcelona, the rules are considerably stricter, with a capped number of licences and new applications often not accepted.
• Partial rentals: in some regions, including parts of Catalonia and Andalusia, restrictions apply to renting out individual rooms or parts of a property, to curb unregulated rental practices.

Fines and enforcement: breaching regional regulations can lead to substantial fines, which depending on the severity of the offence and the region can run into the tens of thousands of euros. It's therefore essential to comply with regional regulations to avoid penalties.

Tip: check the tourist licence requirements for your specific autonomous region — not the now-abolished national registry — and make sure your property is properly registered.

3. Taxes and responsibilities

As a landlord, you're required to declare rental income to the Spanish tax authorities. Non-residents from the EU/EEA pay 19% on net rental income (after deductible expenses), while non-EU nationals pay 24% on gross income, with no right to deduct costs. Residents are taxed progressively and can deduct certain expenses, such as maintenance and mortgage interest.

• Property tax (IBI): landlords must pay annual property tax, which varies by municipality and is based on the property's cadastral value.
• Tourist tax: in certain tourist regions, such as the Balearic Islands, landlords must also pay a tourist tax. These costs are often passed on to tenants and vary by region.

4. Tips for successful renting

• Competitive pricing: research comparable rental prices in your area to make your property attractive to tenants.
• Professional contracts: although verbal agreements are legally valid in Spain, it's strongly recommended to draw up a written contract. This provides more legal certainty and prevents misunderstandings between landlord and tenant.
• Energy certificate: landlords must provide the tenant with an energy efficiency certificate. This certificate provides information on the property's energy consumption and is mandatory for all rented properties.

Tip: make sure you also meet basic requirements, such as providing essential safety features and information about local amenities.

5. Outlook for 2026 and beyond

Now that the national registration system has been scrapped, control over short-term rentals sits fully back with the autonomous regions — and if anything, regulation there is tightening rather than loosening. In popular coastal areas such as the Costa Blanca, Mallorca, Málaga and Barcelona, regional authorities are introducing stricter licensing requirements and restrictions. For the long-term rental market, the IRAV index will now be reviewed annually, which is expected to keep leading to moderate but steady rent increases. Sustainability also remains a growing theme: owners who carry out energy-efficient upgrades may benefit from tax incentives, a push that's expected to grow further as Spain commits to more sustainable housing.

Renting out property in Spain can be an excellent way to generate extra income, but it's crucial to stay up to date with the latest rules and requirements. Want to make sure you're fully compliant? Get in touch with us today for expert advice and help renting out your Spanish property.