Buying a property on the Costa Blanca with the intention of renting it to holidaymakers can look like a straightforward investment.
Find a good apartment, furnish it nicely, put it on Airbnb or Booking.com and let the bookings roll in.
Unfortunately, it is not quite that simple.
The Costa Blanca is one of Spain’s most popular destinations for holiday rentals, but the rules surrounding tourist accommodation have become considerably stricter in recent years. Whether you can legally rent out a property to tourists depends on more than simply owning the property.
The municipality, the building, the owners’ community, the property’s planning status and the regional tourism regulations can all matter.
So if you are considering buying a property on the Costa Blanca as a holiday rental investment — or if you already own one and are thinking about putting it on Airbnb — here is what you need to know.
First: owning a property does not automatically give you the right to rent it to tourists
This is probably the most important point.
Buying an apartment, townhouse or villa in Torrevieja, Orihuela Costa, Guardamar, Santa Pola, Alicante or anywhere else on the Costa Blanca does not automatically mean that you can advertise it as tourist accommodation.
The Valencian Community has its own rules for viviendas de uso turístico — tourist-use properties — and these rules have become significantly more demanding.
Under the current regional framework, a tourist-use property generally means an entire property made available for tourist purposes for periods of up to 10 consecutive days to the same tenant. It must also have the required municipal planning compatibility for tourist use and comply with the applicable requirements. Renting individual rooms as a tourist property does not fall into this category.
That means the first question should not be:
“How much could I earn on Airbnb?”
It should be:
“Can this particular property legally be used as a holiday rental?”
That question should ideally be answered before buying the property, not after.
The Costa Blanca is not governed by one single set of rules
This is where things can become confusing for foreign property owners.
There are several layers of regulation that can affect a holiday rental:
- Spanish national legislation
- regulations of the Valencian Community
- municipal planning and local rules
- the rules of the owners’ community
- tax obligations
- registration and reporting requirements
In other words, having one piece of paperwork does not necessarily mean that everything else is automatically covered.
The Valencian Community’s tourism authorities maintain a specific register for tourist-use properties, and there are formal procedures for registering, modifying or cancelling a tourist property registration.
Step 1: Check whether the property can be used for tourism
Before worrying about Airbnb photographs, pricing or occupancy rates, check the property’s planning situation.
One of the key requirements under the Valencian rules is a favourable municipal report confirming urban-planning compatibility for tourist use, or the equivalent document required under the applicable rules. Depending on the property and municipality, additional municipal authorisations may also be required.
This is particularly important because local authorities can introduce their own planning restrictions and limits on tourist accommodation.
So two apartments that look almost identical from a buyer’s perspective can have completely different prospects when it comes to holiday letting.
This is one of the reasons why buying purely on the basis of expected rental income can be risky.
A good investment property is not necessarily a good holiday rental property.
That distinction matters.
Step 2: Check the owners’ community
For apartments and other properties within a community of owners, there is another important question:
Does the community allow tourist rentals?
Since 3 April 2025, Spanish horizontal property law has required a property owner who wants to start this type of tourist activity to obtain the express approval of the owners’ community. The required majority is three-fifths of the total owners and three-fifths of the participation quotas.
This is one of the biggest changes prospective investors need to understand.
The rules also contain transitional provisions for properties that were already operating as tourist accommodation before the new provisions came into force. A 2026 decision concerning a property in Valencia confirmed the importance of the timing of the tourism registration and whether the activity was already being legally exercised before 3 April 2025.
So if you are buying an apartment that the seller describes as:
“Perfect for Airbnb — it already has a tourist licence.”
do not simply take that statement at face value.
Ask for the documentation and check the property’s actual situation.
The history of the property can matter.
Step 3: Understand the Valencian tourist registration
If the property qualifies for tourist use, it needs to be dealt with under the tourism regulations of the Valencian Community.
The relevant authority is Turisme Comunitat Valenciana, and tourist-use properties are entered into the regional tourism register through the applicable declaration and registration procedure. The administration provides procedures for new registrations, modifications and cancellations.
The regulatory framework has also changed considerably in recent years.
For example, the Valencian Community introduced a major reform in 2024, including stricter requirements and transitional arrangements for existing tourist properties. Existing registrations can also be subject to renewal and adaptation requirements.
This is another reason why an old listing saying “tourist licence included” is not enough information when buying a property.
You need to know what registration exists, who it belongs to, whether it is still valid and what happens when ownership changes.
What happens when you buy a property that already has a tourist registration?
This is an important point for investors.
A tourist registration is not necessarily something that simply follows the property forever.
The Valencian authorities have stated that, following the 2024 reforms, in the event of a sale or transfer of ownership, the new owner must handle a new declaration for the tourist activity.
So when evaluating a property advertised as an “existing Airbnb investment”, the correct question is not just:
“Does this property have a tourist licence?”
It is:
“What exactly happens to its tourist status when I become the owner?”
That distinction could save a buyer a very expensive surprise.
What about Airbnb and Booking.com?
Airbnb and Booking.com are simply platforms for marketing and managing bookings.
They do not replace the legal requirements that apply to the property itself.
If a property is being offered as tourist accommodation, the underlying activity still needs to comply with the applicable Spanish, Valencian and local rules.
This is also why the phrase “but there are already dozens of apartments like this on Airbnb” is not a particularly useful legal argument.
The fact that other properties are being advertised does not prove that a particular property is legally authorised to do the same.
A note about Spain’s national short-term rental registration
You may also have heard about Spain’s new national system for short-term rental registration.
This became particularly confusing in 2026 because the Spanish Supreme Court partially annulled provisions of Royal Decree 1312/2024 concerning the procedure for the national single rental register and the registration number used to offer short-term rentals through online platforms. The relevant judgment was issued on 19 May 2026 and published in the BOE in June.
Other Supreme Court decisions followed, including a further ruling in May 2026.
The important point for a Costa Blanca property owner is this:
The changes to the national registration system do not mean that the Valencian tourist accommodation rules have disappeared.
The regional and local requirements still matter.
For this reason, anyone dealing with a tourist property should distinguish between:
national short-term rental rules
and
the Valencian Community’s tourist accommodation regulations.
They are not the same thing.
Step 4: Make sure the property meets the practical requirements
Being legally allowed to operate a tourist property is only part of the job.
The property also needs to meet the applicable standards for tourist accommodation.
Depending on the type and location of the property, this can involve requirements relating to things such as:
- habitability
- equipment and furnishings
- bedrooms and sleeping capacity
- bathrooms
- ventilation
- air conditioning or heating
- safety
- information for guests
- emergency information
- maintenance
- accessibility and other technical requirements
The exact requirements depend on the applicable regulations and the characteristics of the property, so this is another area where checking the current rules before buying or renovating is sensible.
Step 5: Think about how the property will actually be managed
This is often forgotten by first-time investors.
A holiday rental is not completely passive income.
Someone has to deal with:
- guest communication
- check-in and check-out
- cleaning
- linen
- maintenance
- emergencies
- keys or access codes
- guest complaints
- repairs
- calendar management
- pricing
- reviews
If you live in Switzerland, the UK, Germany or elsewhere and only visit the Costa Blanca occasionally, this becomes even more important.
A local property management company can take care of many of these tasks, but management fees need to be included in your investment calculations from the beginning.
A property generating €1,500 a month in bookings is not generating €1,500 of profit.
There can be cleaning, management, utilities, community fees, insurance, maintenance, taxes, platform commissions and periods without guests.
Step 6: Don’t forget the tax side
Rental income from a property in Spain can create Spanish tax obligations, even if the owner lives abroad.
For non-resident owners, the Spanish Tax Agency applies the Non-Resident Income Tax rules to income generated from Spanish property. The applicable treatment depends on the owner’s circumstances and on whether the activity is considered a simple rental or an economic activity.
The tax treatment can also differ depending on where the owner is tax resident.
For example, the Spanish Tax Agency currently states that residents of the EU, Iceland, Norway and Liechtenstein may be able to deduct qualifying expenses directly connected with Spanish rental income when the relevant conditions are met. Other non-residents are subject to different rules.
VAT can also depend on how the accommodation is operated. A tourist rental where the owner simply makes the property available can be VAT-exempt, while the provision of hotel-type services can result in VAT being charged at the applicable rate.
This is one area where professional advice is worth the money.
The tax position of a Spanish property owner living abroad can depend on several factors, including tax residence, ownership structure, services provided and the nature of the rental activity.
Buying a Costa Blanca property specifically for Airbnb?
Then do the checks in this order.
Before you make an offer
1. Check the municipality
Can this property legally be used for tourist accommodation at this location?
2. Check the property
Does it meet the applicable requirements?
3. Check the owners’ community
Is tourist use permitted, and if approval is required, can it realistically be obtained?
4. Check the existing tourism registration
If the property is already registered, establish exactly what the registration covers and what happens following the purchase.
5. Check the planning documentation
Make sure the property’s planning and legal status are consistent with the intended use.
6. Calculate the real numbers
Do not base your investment decision on gross Airbnb revenue alone.
7. Check the tax position
Especially if you are a non-resident owner.
Only after those questions have been answered should you start worrying about the property’s photos, furniture and Airbnb ranking.
Can you still make money from holiday rentals on the Costa Blanca?
Yes.
The Costa Blanca remains one of Spain’s strongest tourism markets, and properties in attractive locations can work very well as holiday rentals.
But the easy-money version of the story is becoming less realistic.
Regulation is tighter, municipalities are paying more attention to tourist accommodation, owners’ communities have greater powers, and the regional authorities have been actively cleaning up and updating the tourist property register.
The Valencian authorities announced in late 2024 that more than 34,000 tourist properties were facing removal from the register because essential information or required documentation was missing.
That does not mean holiday rentals are disappearing from the Costa Blanca.
It means the days of simply buying an apartment, putting a key in a lockbox and assuming everything will be fine are becoming harder to justify.
The smartest time to check the rules is before buying
If your main reason for buying a Costa Blanca property is the potential rental income, treat legal eligibility as part of the investment analysis.
A beautiful apartment close to the beach may look like the perfect Airbnb property.
But if tourist use is not permitted, the owners’ community does not allow it, the municipal planning requirements cannot be satisfied, or the existing registration cannot simply be transferred to you, the expected rental return becomes irrelevant.
That is why the best question to ask before buying is not:
“How much can I earn from Airbnb?”
It is:
“Can I legally rent this particular property to tourists, and what will it really cost me to operate it?”
Once you know the answer to those two questions, you can work out whether the investment actually makes sense.
And on the Costa Blanca, that is a much better place to start.
Leave a Reply