More tourist licences for Valencia?

The High Court of Justice of the Valencian Community has partially overturned a moratorium on new tourist accommodation licences in Valencia. What does this mean for people who rent out accommodation?

In 2024, Valencia city council agreed that licences for new tourist accommodation in the city would be suspended. This came amongst nationwide concern about the difficulties that residents are having, finding affordable property. The suspension meant that ‘change of use’ licences could no longer be granted to people seeking to offer properties to tourists rather than locals. The term ‘tourist rental’ typically refers to a rental of 10 consecutive days or less.

The court of appeal was lodged by an apartment management company and the court agreed to overturn the ban on ‘change of use’. However, what wasn’t overturned was the suspension of building licences when it comes to new tourist-related developments.

Laws in Spain are made on a regional as well as a national level. This can cause difficulties with opposing interests and political parties. As local areas are struggling with house and rental prices that are not affordable for the local population, some regions are imposing restrictions on tourist rentals in particular. 

Restrictions in Valencia

Tourist rentals in Valencia must have a licence from the Generalitat Valenciana. This licence is dependent on owners acquiring:

• a certificate from the local town hall confirming that the property can be used as a tourist rental
• approval from the community of owners

Certificate from the town hall

The town hall must agree that the application conforms to municipal zoning rules. They have the authority to cap the number of tourist rental licences in specific areas so it is important to check whether an application for a tourist licence is possible in an area of interest.

Community approval

Since 3^rd April 2025, tourist rentals are generally prohibited unless the community of owners authorizes it. Property that was legally operating as a tourist rental before the law was introduced can continue to be rented but a surcharge can be applied by the community of up to 20% due to the increased use of shared areas when the property is rented out.

The use of key boxes on public roads and in common building areas is not allowed and all advertisements for the property must include the registration number. It is also now expected that owners provide their guests with information about community rules and the use of facilities – these must be signed for. Tourist licences must be renewed every five years.

An important test case for the future

This might not yet be the end of the story. Valencia city council is believed to be considering making an appeal to the Supreme Court of Spain against the High Court of Justice ruling. The outcome could be significant not only for Valencia but also for other cities imposing similar restrictions.

The issue of affordable property for local people and the reliance on many of these areas on tourist money continues to be a difficult balance to maintain. The jury is still out on whether an increase in restrictions will mean that property is more accessible for those living in these areas.