Investing in a rental property in the Costa del Sol?

The Costa del Sol is one of the most popular tourist destinations in Spain, making it an attractive location for property investors looking to capitalize on the holiday rental market.

Whether you're interested in renting out a property in areas like Marbella, Fuengirola, or Mijas Pueblo, there are some key factors to consider, especially with recent regulation changes.

The Holiday Rental Market

Many property owners on the Costa del Sol rent their properties as holiday rentals, offering tourists the chance to enjoy Spain’s sunny coast while providing investors with a steady income stream. Holiday rentals in popular areas are particularly lucrative, with demand typically high during peak seasons.

Latest News: Cap on Tourist Properties

However, recent updates to Spain’s regulations on short-term holiday rentals have created some restrictions. In particular, local governments have started to impose caps on the number of properties that can be rented out to tourists in certain areas. This is part of a wider initiative to regulate the booming tourist rental market and to ensure that local housing is not overly impacted by short-term rentals.

In places like Málaga City, Marbella, and other coastal towns, these caps are designed to limit the number of properties available for holiday rentals in an effort to preserve residential housing for local residents. These new laws mean that investors will need to be aware of zoning laws and licensing requirements before purchasing a property to rent it out as tourist accommodation.

What Does This Mean for Investors?

If you're considering investing in a holiday rental property on the Costa del Sol, it's crucial to understand the new regulations and ensure your investment complies with local laws. You will need to apply for a tourist licence, and availability of these licences may be limited depending on the area. In some regions, properties in the tourist zones are already reaching the cap on the number of allowed rentals, making it harder to secure a licence.