So – you’re about to sign on that dotted line? You’ve committed to your Spanish holiday investment. Now you’re asking yourself …
‘How do I let my Spanish home out?’
Setting up a Spanish Holiday let is rarely as easy as many would have you believe. But – like anything worthwhile, to get the most of your Spanish holiday property, you need to rigorously prepare and plan. With an effective holiday home letting strategy in place, you’ll be good to go … and ready to make the most of your hard work and investment! Here’s our 3step guide to setting up a Spanish holiday let.
Step 1 – Location and Legal Essentials
Before you furnish a room or write a listing, there are two major factors to consider: where your property is located, and what the law requires of you. In Spain, both location and legal context go hand in hand.
Why Location Really Matters
It’s not just about sea views or being close to restaurants. Spanish holiday rental regulations vary significantly by region — and increasingly, even by municipality. What’s legal in Valencia might be restricted in Barcelona. Choosing a location without researching its legal landscape could delay or derail your rental plans entirely.
Licensing Your Spanish Holiday Home to Let
Letting out your home as a holiday rental in Spain typically requires a formal licence — and failing to get one can result in hefty fines or even a ban on renting altogether. As of 2025, several new requirements have come into force that owners must be aware of.
– Homeowners’ Association Approval
If your property is part of a shared residential building, such as an apartment block, you’ll now need permission from the building’s comunidad de propietarios (homeowners’ association). As of April 2025, a 60% majority vote is required to allow short-term letting in shared buildings. Without this approval, holiday rentals may be restricted or entirely prohibited in your development.
– National Registry Requirement
From July 2025, all holiday lets in Spain must be registered in a new national short-term rental database. Once registered, you’ll be issued a unique property ID, which must appear in all online advertising — including platforms such as Airbnb and Booking.com. Failing to display this registration number can result in fines and removal from these platforms.
– Regional Restrictions
Several regions and cities have introduced tougher regulations due to rising tourism pressure and housing shortages. In Barcelona, new licences are only issued in exceptional cases, and many central areas remain closed to new holiday lets. Seville and Málaga have introduced moratoriums on new licences in high-demand districts. In the Balearics and parts of the Valencian Community, unregistered or illegal lets are increasingly being shut down.
– Insurance and Tax Obligations
Your property must be properly insured, with a policy that explicitly covers short-term tourist rentals. As a non-resident, you’re also required to declare rental income to the Spanish tax authorities. Depending on your circumstances, you may be able to deduct certain expenses — such as mortgage interest and maintenance costs — but you’ll need to provide full documentation, including proof of tax residency in the UK via an HMRC certificate, if you’re looking to avoid double taxation.
Step 2 – Get your sums right
Before buying property in Spain to rent out, you need to be sure of your finances. You may well need a degree of rental income to fund your purchase. Think also about maintenance expenses. Have you also thought about management fees and cleaning costs?
Remember too that, whereas some regions of Spain are popular as holiday let destinations all year round – the Costa Blanca, Costa del Sol and the Canary Islands – others are more seasonal. Setting up a Spanish holiday let in areas like the Costa Brava might prove trickier to rent out all year round. So, think about how much annual profit you’re looking to make. Don’t take it for granted that your holiday rental will be booked out 24/7. Be cautious – plan for fallow periods.
Step 3 – Efficient, friendly Spanish holiday property management
Will you be living nearby? A simple question but one you should take seriously. When you’re setting up a Spanish holiday let, how you manage your property will be vital to its financial success. If not you, then who will be looking after your property? There’s plenty to consider – handling bookings, receiving payments (although these days these are increasingly managed online), cleaning, laundry, meeting and greeting.
A happy, smiling face
The last of these is especially important. You need someone who’s friendly, efficient, punctual and reliable to make your guests feel at home from the moment they arrive. Someone who can be trusted to present a happy, welcoming face – to answer any questions your guests might have; to make sure that everything is in good working order and sparkling clean; to provide a welcome pack of food and drink essentials, as well as a vase of flowers on the kitchen table.
Avoid the cheapest
So, who will be the happy, smiling face of your Spanish holiday let? If not you, then could you pay for a trusted friend to take o the role? There will be plenty of local managing agents available – but you need to make sure they’re up to the task. Ask around. Find out who other holiday property owners recommend. The management role is such an important one – going for the cheapest will almost certainly prove to be a false economy.
Is your management company compliant?
There are plenty of people available to offer holiday rental management services in Spain. You may opt for a local individual with that personal touch. Perhaps you prefer a holiday let management company. Either way, make sure that their service complies with the local Spanish law. For instance, in many regions, you’re required to register your guests with the local police station within 12 hours of their check-in. It’s a simple process, but if you’re entrusting the management of your holiday let in Spain to someone else or an organisation on your behalf, you’ll need to make sure they comply.
Other Spanish holiday let factors to consider
There are plenty more factors to bear in mind when setting up a Spanish holiday let. Here are just a few:
- Proximity to an airport
- Local attractions
- Climate
- Local attractions
- Local public transport
Spanish property holiday lets – an excellent investment
There’s no doubt that investing in setting up a Spanish holiday property let can be a secure and profitable way to invest. You have the flexibility of using the property for your own holidays whilst letting it out to others as and when you want. However, it’s not the kind of enterprise to jump into without careful forethought and planning. Plunging ahead without the right advice and strategy could prove costly. But – get it right and your Spanish holiday property let could prove the best investment decision you ever take.
