Everything About the Tourist License in Spain: Essential Guide for Residents and Future Owners

Whether you already live in Spain and are thinking about making your property profitable during your holidays, or you are planning to move to the Costa Blanca and want to purchase a home that generates passive income when you are not there, there is a legal aspect you cannot afford to ignore: the Tourist License (Licencia Turística).

In recent years, Spain – and specifically the Valencian Community (province of Alicante) – has drastically tightened regulations regarding short-term rentals through platforms like Airbnb or Booking. Obtaining this license has become a non-negotiable factor in the process of buying or managing a home. In this article, we explain what this license is, who needs it, and why it is crucial for both locals and those planning to relocate.

What is a Tourist License and when is it mandatory?

A tourist license is an official registration number provided by the Autonomous Community (in our case, the Valencian Community) that grants a property owner the legal right to rent out their property for tourism purposes—meaning for periods shorter than 2-3 months, multiple times a year.

If you advertise a property on specialized websites without displaying this registration number, you risk massive fines, which can start at €10,000 and go much higher, and online platforms will automatically block your listing.

• If you already live there: Perhaps you have a spare room, an annex, or you leave Spain during the summer and want to take advantage of the high season. You need a license.
• If you want to move: It is ideal to buy a property that *already* holds a license or fully meets the urban planning criteria to obtain one, giving you the flexibility to generate passive income from day one.

The Major Shift: The Role of the Town Hall (Compatibilidad Urbanística)

The most important rule that both current residents and future buyers must understand is that obtaining a license no longer depends solely on the regional government, but primarily on the local regulations of each town or city (Town Hall).

Before applying for the license from the region, you must obtain a certificate called Informe de Compatibilidad Urbanística from the local town hall. This document certifies that the property is located in an area where tourist rentals are permitted. Many town halls have blocked the issuance of new licenses in certain overcrowded neighborhoods or impose strict rules (for example, the property must have a separate entrance or cannot be located directly above other residential homes).

The Rule of the Community of Owners (Comunidad de Propietarios)

Another essential aspect, valid for anyone who owns or wants to buy an apartment within a residential complex (urbanización), is the agreement of the neighbors. Under Spanish law, the community of owners can vote to ban tourist activities within the building if a qualified majority is met (usually 3/5 of the votes and participation quotas).

If you are already in Spain, check your community statutes before making investments in renovations for tourism. If you want to buy, this is the very first thing your real estate agent should verify in the building's rulebook.

Tax Implications: Resident vs. Non-Resident

The way you are taxed on tourist rental income differs depending on your residency status:

• If you are a tax resident in Spain: Income from tourist rentals is declared in your annual income tax return (IRPF) as returns on real estate capital. The advantage is that you can deduct many expenses (cleaning, advertising, proportional utility bills, property depreciation).
• If you are a non-resident (but an EU citizen): You will pay a fixed tax (generally 19%) through quarterly filings using Form Model 210. Non-resident EU citizens are also entitled to deduct expenses directly related to the rental activity.

How PLANET VILLA ensures a safe transition and investment

Whether you are a local resident looking to legalize your property's rental status, or you are in the middle of relocating to Spain and want to make a smart purchase, the PLANET VILLA team provides full legal and administrative support.

We do not just help you find the perfect property; we pre-verify the local town hall's urban development plans and the community statutes to ensure the home can obtain or already holds a valid Tourist License.

We look forward to welcoming you to our office in Torrevieja to analyze the best options for your needs and secure your investment: Av. de la Purisima, 1, 03182 Torrevieja, Alicante, Spain.