Updates on tourist rental regulations in the Comunidad Valenciana

The Comunidad Valenciana implemented new tourist rental regulations on August 2, 2024, under Decreto Ley 9/2024. These changes aim at balancing tourism growth with housing availability and urban planning. Here are the main highlights, enriched by additional perspectives:

Key Changes on tourist rental in Valencia

1. License Limits per Zone: local councils now have the authority to cap the number of tourist rental licenses in specific areas. This measure helps manage tourism density and its impact on residential neighborhoods. This makes it crucial for property owners to understand local policies before investing. 
2. Mandatory Community Certificate: property owners must confirm whether the homeowners’ association has any restrictions against tourist rentals. While a certificate from the community is not typically required by municipalities or the Tourism Registry (except in specific cases), it’s important to verify this information beforehand. If the community opposes tourist rentals, they must formalize their stance through a notarized and registered document. Merely discussing it during community meetings is insufficient. Some communities may not issue official certificates but will provide the necessary information.
3. Rental License Validity: tourist properties in the Valencian Community must register with the Tourism Registry. Then they must renew their registration every five years, and comply with specific regulations. Properties registered before August 7, 2024, remain valid until August 8, 2029, when they must be renewed under the new decree. To register or renew, owners must submit a declaration of compliance, the property’s cadastral reference, rental periods, and a favorable urban compatibility report. Registration is exclusively online (GVA platform), and violations, such as exceeding rental days or missing documentation, may lead to deregistration. It is also necessary to make a new registration when ownership changes. Existing registrations can be checked through the official registry portal.
4. Rental Period Restrictions: rentals of up to 10 days are tourist rentals. In fact, they require a tourist license to operate legally under this category. Rentals of 11 days or more are no longer classified as tourist rentals. Instead, they fall under short-term rentals or lease agreements, which are governed by different regulations. For property owners with a tourist license, there are options to engage in mixed-use rentals. Mixed-use rentals are tourist and non-tourist rentals, but specific rules must be followed. It is important to notify the Tourism Registry of any changes in the operational period of the property. Ensure contracts for tourist rentals do not exceed 10 days per adult. This system helps differentiate short-term tourist stays from longer-term residential agreements, ensuring compliance with both tourism and leasing laws.
5. Urban Compatibility Report: property owners must present a favorable urban compatibility report from the local council to confirm compliance with municipal zoning rules. Alternatively, it is possible to submit a certificate from authorized entities to streamline this process. This will also be necessary when its time to renew your license and we recommend applying for this with sufficient time in advance.
6. Regulations on Key Delivery: the decree prohibits the use of public key boxes. Property managers must hand over keys directly or ensure secure alternatives that do not violate public space regulations.
7. Display of information: the exact location and registration number of the property must be included in all advertisements. Additionally, properties must prominently display their registration certificate and compliance logos at the entrance.
8. House Rules: owners must provide guests with internal regulations that outline community rules, the use of facilities, and pet policies. Guests must acknowledge and accept these rules upon check-in.
9. Accessibility Standards: properties must comply with updated building codes, including accessibility features, fire safety measures, and energy efficiency certifications.
10. Room rentals: renting individual rooms for tourism purposes remains prohibited in most areas to preserve quality and minimize disruptions in residential zones.
11. Liability and oversight: while property owners hold overall responsibility, they can delegate operational management to commercial managers. However, owners remain liable for violations if the manager’s details are not submitted.
12. December 31st deadline: similarly, all tourist-use properties will have until December 31 to report the cadastral reference of the property; otherwise, they will be removed from the Registry, as the deadline is “non-extendable.”

Opportunities for property owners in the Comunidad Valenciana

• Reduced Competition: stricter licensing might limit competition, increasing potential nightly rates and occupancy levels for compliant properties.
• Long-term Stability: investing in “A-location” properties with year-round appeal and proximity to amenities can offer both higher occupancy rates and resale value.
• Flexibility in Rentals: the combination of short-term and mid-term rentals could optimize returns if structured carefully. Short-term: up to 10 days. Mid-term (11+ days).

Key Considerations when changing ownership of a property with a tourist license

When there is a change in the individual or legal entity owning a property registered as a tourist rental, the new owner must submit a responsible declaration for the change of ownership. This includes providing a favorable urban compatibility report for tourist use. The property will then be registered under the new owner. If the new owner wishes to transfer the management of the property to a third party, they must complete an ownership transfer process through the designated online platform, with the owner’s consent and at the request of the new manager.

Owners must ensure compliance with additional documentation requirements, such as energy efficiency and municipal community certificates, to maintain or obtain licenses.

Next Steps for Property Owners

Understanding how these changes apply to specific municipalities is essential. Investors should work closely with local experts or legal advisors to adapt to the evolving landscape and explore potential opportunities created by these regulations.

For more detailed guidance, visit the official decree here.