Investing in rental property in Spain – an investor’s guide and new regulations for 2026

In the current economic climate, including the desire for geographical diversification of assets, purchasing real estate is an excellent option for Polish investors. Combine this with a prestigious location such as Marbella, and you have a recipe for success.

A luxury home on the Costa del Sol for holidays and… rental

The attractiveness of the Andalusian coast and the ever-growing prestige associated with owning a house or apartment in this location mean that more and more Poles are looking for luxury properties in this region of Spain.

When purchasing a property on the Costa del Sol, investors are usually guided by two needs – the desire to have a private, luxurious enclave for their holidays and the diversification of their investment portfolio through short- and long-term property rentals.

When deciding to buy an apartment or house for investment purposes, it is not worth worrying about the daily responsibilities associated with renting or administration, so that you can focus solely on overseeing the profits it generates and booking your well-deserved vacation.

In such cases, an excellent solution is to establish cooperation with an experienced and qualified real estate agency that will take care of all matters related to the rental process – from preparing and managing advertisements on websites, through conversations with potential customers, to formal and organizational issues, such as rental agreements, guest service, and cleaning.

New regulations on property rentals in Spain

Based on Decree 31/2024 (Decreto 31/2024), the definition and requirements for so-called tourist apartments (VUT – viviendas de uso turístico) have been changed in Andalusia, and the role of municipalities and homeowners’ associations (comunidad de propietarios) in the process of establishing them has been strengthened.

If the apartment does not have a tourist license:

First of all, it is important to remember that, according to the regulations, in order to obtain a tourist license, the apartment must have an LPO (Licencia de Primera Ocupación). Next, in order to be able to rent the apartment on a short-term basis, the owners are required to obtain the consent of the residents’ association.

The decision to approve the rental will require a majority of 3/5 of the votes. If the community’s statutes do not prohibit tourist rentals, the final decision will depend on the residents’ vote. The community may not only refuse to consent to tourist rentals, but also restrict or completely prohibit them, also by a majority of 3/5 of the votes.

Before buying on the secondary market, it is worth checking the community’s statutes and the minutes of recent meetings – if a VUT ban has been introduced, it may be impossible to obtain a license.

The decree has tightened technical requirements (including a minimum of 14 m² per person, permanent air conditioning and heating in living rooms and bedrooms, a 24/7 contact number, and ventilation – windows to the outside or an open patio).

If the apartment has a license:

In Andalusia, the license is real (carácter real), i.e. it is linked to the premises and not to the owner. Since the license is assigned to the property – not the owner – after purchasing a property with a license, you must report the change of ownership by submitting a declaration of change of legal title. In the case of short-term property rentals, the license must be transferred to the management company (if any).

The management company is fully responsible for the rental and the requirements associated with it. Therefore, in the event of a change of company, termination of cooperation, or sale, the new manager/owner must be reported again.

It is also mandatory to have a number commonly referred to as NRA (NRUA – Numero de Registro Único de Alquiler), which all short-term rental properties must have. The NRA is mandatory from July 1, 2025, and from that date, it must appear on advertising portals where online reservations can be made. Without an NRA number, it is not possible to publish advertisements on portals or rent in accordance with current regulations.

The NRA also requires the annual submission of an information form – concerning short-term rentals – in order to maintain an active rental registration number (NRUA – Número de Registro Único de Arrendamientos). Failure to submit the relevant declaration between February 1 and March 2 each year will prevent any complaints from being made after that date.

In addition, an annual activity report, i.e., form N2 (Depósito de arrendamientos de corta duración), must be submitted to the Registro de la Propiedad. Failure to submit this form may result in the revocation of the NRA number and the removal of advertisements from platforms.

For each short-term rental property, there is an obligation to register tourists through the Hospedaje platform – linked to the Guardia Civil police system – providing identity document information for each person in the group of renters over the age of 16. Failure to provide the required documents may result in the loss of your license and an official penalty.

The role of the agency in renting property on the Costa del Sol

Many clients do not delve into the entire process and the range of activities that the agency undertakes to find a client for a given property. And although at first glance it might seem that the work of the team responsible for rental management is limited to preparing and publishing an advertisement on a portal such as Booking.com or Airbnb, and then waiting for an application, the list of tasks is much longer.

In order to fully exploit the potential of a given property, it is necessary to prepare the most advantageous offer that meets market requirements and customer expectations. To this end, it is necessary to constantly monitor advertisements with characteristics similar to those of the property in question. This process allows for ongoing modifications to offers, both in terms of price and the package of services included in the offer.

Another important area requiring increased vigilance is monitoring the content of advertisements that we publish on portals. Are you wondering why? Well, there are situations in which portals modify them on their own. This translates into increased costs for the property owner, e.g., through the payment of a cleaning company. In such cases, intervention is necessary to update the advertisement and restore it to its original form. This is successfully handled by the agency, which ensures that the rental process is carried out in accordance with prior arrangements.

However, the full scope of activities of the agency, which takes care of the property and handles its rental, is much broader and includes, among other things:

• Registering the property for rent – a person who wants to rent a property for a period of, for example, 7 days, is obliged to register it with the Spanish authorities. The registration fee is approximately €200.
• Checking payments made by customers.
• Check-in/check-out of guests renting the property – service during the stay in accordance with the services included in the advertisement.
• Organization of cleaning after guests check out – cooperation with a cleaning company that will perform the service each time after guests check out.
• Ensuring positive reviews – reviews from people renting the property are one of the main indicators that guide users looking for a house or apartment to rent. In the first year, due to the small number of reviews, interest in the offer may be lower, which is why the agency attaches great importance to tenant satisfaction and, consequently, to them leaving positive reviews.
• Price management – the agency, in full agreement with the client, sets and modifies the price of the property – depending on demand, so that the property generates the highest possible income and profit.

Property maintenance costs on the Costa del Sol

It should be noted that individual municipalities may impose restrictions on the issuance of new licenses – on the Costa del Sol, restrictions currently apply to Malaga, Fuengirola, and Manilva, among others. The homeowners’ association (comunidad de propietarios) may increase fees for properties with a tourist license by up to 20%.

When deciding to buy a rental property on the Costa del Sol, you need to be aware of the costs of maintaining it, which include, among others:

• Costs of cooperation with advertising portals – Airbnb (15% of the offer value) and Booking (15% of the offer value +1.1% transaction fee, in total should not exceed 16.5%).
• Cleaning (the cost is included in the price offered to the landlord).
• Water and electricity consumption.
• Housing fees (rent).
• IBI (Impuesto Sobre Bienes Inmuebles), i.e., property tax – depends on the size of the property and the fees set by the municipality in which the property is located.
• Dedicated insurance (optional) – broader coverage of possible losses incurred by the owner that are not covered by the basic insurance package – cost approx. €200 per year. It is worth using the services of a reputable company recommended by the real estate agency.

The decision to work with an agency that will take care of all aspects of property rental involves adding a commission to the total costs incurred. Under market conditions, the commission is approx. 20% (+21% VAT) of the income generated.

Tax on property rental in Spain

The purchase of a property for rent involves a steady stream of additional income, which will have to be accounted for. According to the legal standards in force, this tax must be settled on a quarterly basis and amounts to 19% of the income earned.

For non-residents, i.e. persons from outside the EU, the rate is 24% of gross income (without deductions). During periods when the property is not rented out, there may be a tax on imputed income (approx. 1.1% or 2% of the cadastral value per year).

In the case of tax settlements, the costs that you can deduct include:

• housing estate fee,
• cost of electricity consumption,
• cost of water consumption,
• home insurance,
• costs of maintenance services, e.g., cleaning (you must have an invoice for this service),
• cost of cooperation with a real estate agency,

• Internet.

When making tax settlements, it is worth remembering that we can only deduct costs for the period in which the property was rented from our income.

For example, if you rented an apartment or house for 90 days in a given quarter and the annual insurance costs €360, you can deduct €90 in your quarterly tax return. This rule applies to all costs related to the operation of the property incurred by the owner.

In order to carry out your tax settlement in full compliance with Spanish law, it is worth establishing cooperation with a reliable accounting office, which costs approximately €150 per quarter.

Let us help you

Owning your dream house or apartment on the Costa del Sol comes with many additional responsibilities, which can be successfully handed over to Agnes Inversiones. Our many years of experience in the Spanish real estate market make us the perfect partner to take care of property management and rental for you, allowing you to focus solely on planning your well-deserved vacation and future investments.