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On August 2, 2024, the Consell (Valencian Council) passed the Decree Law 9/2024, introducing significant changes to the regulation of tourist rental properties (VUT) in the Valencian Community. This new regulatory framework aims to curb the uncontrolled growth of tourist rentals, combat unfair competition, and ensure that tourism activities are sustainable and in harmony with urban planning regulations.
Context and justification for the reform
In recent years, cities like Valencia and Dénia have experienced a massive increase in the number of tourist rentals, causing severe issues for residents. In Valencia, the saturation of tourist properties in central neighbourhoods has raised rental prices, making housing less accessible for locals.
In response, the Dénia City Council has taken preventative measures, such as suspending new licenses in certain urban areas to preserve residents’ quality of life.
This scenario highlights the negative effects of over-tourism: gentrification, loss of community identity, and growing frustration over the lack of control over illegal rentals.
These concerns, combined with new European regulations, have driven the Consell to implement stricter rules for tourist rentals.
Key changes in regulation
Definition and rules for tourist rentals (VUT)
- Tourist rentals must be leased as a whole unit for a maximum of 10 consecutive days. Renting by the room is strictly prohibited.
- It is mandatory to have a municipal urban compatibility report, ensuring compliance with all cadastral and urban planning requirements.
Subsidiary liability of property owners
- Property owners will have subsidiary liability if they fail to cooperate with authorities in cases of illegal or clandestine rentals. Additionally, the use of key lockboxes in public spaces is prohibited to enhance control.
Quality and safety requirements
- VUTs must be equipped with essential appliances (washing machine, refrigerator, oven/microwave) and have internet access. A 24-hour customer service and necessary safety and accessibility measures are also mandatory.
Tourism registry enrolment
- Registration in the Tourism Registry is valid for five years. Property owners must renew their registration by submitting a new responsible declaration and updated documentation.
- Non-compliant properties will be automatically removed from the registry.
Urban limitations and sanctions
- Municipalities can impose limits on the number of VUTs in specific areas to prevent gentrification and maintain social cohesion.
- Violations will result in harsher fines, classified as minor, serious, or very serious, affecting both property owners and management companies.
Impact on the tourism sector and stakeholder opinions
The approval of the Decree Law 9/2024 has sparked mixed reactions.
Residents in affected areas welcome these measures, hoping for improved quality of life and better control over unregulated tourist rentals.
On the other hand, rental management companies fear these restrictions may harm the economy and reduce tourist inflows, especially in a region where tourism is a major economic driver.
The new legal requirements provide legal certainty for owners and managers, but they pose a challenge in terms of adaptation.
Compliance with these regulations demands a more professional and detailed approach to management, necessary to avoid penalties and ensure that tourism operates within a well-regulated framework.
Future prospects
Decree Law 9/2024 represents a turning point in the regulation of tourist rentals in the Valencian Community. Balancing the economic prosperity of tourism with the quality of life for residents remains a critical challenge. The new measures aim to bring order to the sector, ensuring tourism continues to be a sustainable source of wealth without compromising local communities’ well-being.
Moreover, the potential increase in VAT from 10% to 21% for tourist rentals introduces new challenges for investors and operators. Strategic planning to optimise tax and management operations will be essential in this evolving landscape.
Do you need advice?
At Delaguía&Luzón, our team of legal experts in real estate and tax law is ready to assist both national and international investors.
We provide effective alternatives and strategic solutions to minimise the impact of these regulations.
By assessing each case comprehensively, we offer options to ensure compliance and maximise profitability in a secure legal environment.
