The Spanish Government’s new battle against vacation rentals
The Spanish government is stepping up its fight against vacation rentals with a new set of regulations aimed at reining in the sector. On July 3rd, Isabel Rodríguez, Minister of Housing and Urban Agenda, announced plans for urgent legal changes to increase regulation on short-term rentals.
One significant proposal is from the Sumar political party, which is pushing the PSOE to include a fiscal package in the 2025 General State Budget. This would impose a 21% VAT on vacation rentals, making them less profitable compared to long-term leases.
Key measures being discussed include amending the Horizontal Property Law (LPH) to allow property owner associations to veto vacation rentals, and creating a unified registry for such properties. This registry will cover properties listed on platforms like Airbnb and Booking, and will limit the duration of these rentals, requiring justification for each case.
However, details on the implementation remain sparse. The government's goal is to improve housing availability and increase the rental market supply. But there's skepticism about whether these measures will be effective, as previous government interventions in the rental market have decreased the number of available rental properties.
Expert Reactions
Asier Pereda, VP of FEVITUR (Spanish Federation of Tourist Housing and Apartments), is cautious. He notes that without concrete details, it’s tough to gauge the impact of the proposed measures. Pereda emphasizes the importance of collaboration between the sector and the government to ensure any new regulations align with broader goals.
Juan R. Méndez, an expert in vacation rental law, acknowledges the need for action amid current social tensions but warns of the complexities in differentiating between seasonal and tourist rentals. Similarly, Jesús Leal, a renowned urban sociology professor, calls for a balanced approach to regulation, noting that excessive rules could blur lines between different rental types.
Will It Work?
A study by the Fundación Alquiler Seguro and Universidad Rey Juan Carlos suggests that bringing vacation rentals into the long-term rental market would not significantly boost housing availability due to high demand. Pereda argues that comprehensive reforms are needed across multiple sectors, including taxation and legal frameworks, to make a substantial impact.
Leal adds that housing needs in rapidly growing areas like the Mediterranean coast and around Madrid are so high that the impact of converting vacation rentals to long-term leases would be minimal.
Unified Registry: A Step Forward?
Most stakeholders, including platforms like Airbnb and associations like FEVITUR, view the creation of a unified rental registry positively. It promises clearer, more straightforward regulations and better access to necessary data for authorities, leading to fairer and more consistent enforcement of the rules.
In conclusion, while the government's planned crackdown on vacation rentals aims to address housing shortages and improve market conditions, its success will depend on the details and execution of these measures. The sector remains hopeful but cautious, awaiting more information before passing final judgment.