Here we go again—the national Spanish government has announced new legislation aimed at cracking down on short-term rentals, directly affecting digital nomads and short-term visitors, who are the primary users of this provision.
In a bid to “put an end to fraud” and “curb short-term rentals,” Spanish President Pedro Sánchez sent the new regulation draft to the Council of Ministers on Tuesday, with plans to open it for public consultation soon.
“I want to announce that we are distributing €200 million in ‘youth rental vouchers’ and introducing new legislation to end fraud in tourist and seasonal rentals,” Sánchez stated on Monday at the Barcelona World In Progress forum.
According to experts, the president is referring to regulations that the Ministry of Housing announced last summer.
This proposal had already been debated by several political parties and tenant associations but failed to materialize.
To overcome future obstacles, the government is now opting for a “Royal Decree” issued through the “via of urgency,” which essentially bypasses court intervention.
Although the exact details of the new regulation have yet to be disclosed, reports suggest that once implemented, property owners and tenants will need to prove that a short-term rental is not taking place in a primary residence.
Local media highlight the situation of workers and students who only need such housing for limited periods.
Read also: Spain Adds New Requirements And Tightens Rules For Digital Nomad Visa
Understanding How Short-Term Rentals Really Work in Spain
According to Spanish law, short-term rentals are legal, but they are wildly misunderstood.
A short-term rental contract is not determined by its duration but rather by the “purpose of the rental.”
This means that “what is rented is not a habitual residence, but a property that someone needs for a specific period. And that is the flank [the Mystery of] Housing aims to target after studying the issue,” according to a report by El País.
In a nutshell, a short-term rental is not simply a contract for less than 12 months, as many mistakenly believe. It is defined not by the length of time you need the property but by the intended use (purpose) you will give it.
It may sound familiar to what you already know, but it’s not—this time, you may not be able to “justify with annexes” why you’re opting for that type of contract.
As per the government, property owners have been exploiting loopholes in the current legislation for years, turning the entire process into what they describe as a massive “fraud.”
These practices would be the real reason why rental prices are skyrocketing across the country—not remote workers and tourists, who have often been blamed for this situation.
Regarding the proposal, members of opposition parties have already spotted potential flaws: “We (can’t employ) a legion of inspectors to chase down fraud. What we need is for seasonal rentals to be subject to the price control system,” said Ernest Urtasun, Minister of Culture.
In fact, his party has submitted “a series of observations” to the government, warning that this new legislation might do more harm than good.
We’ll see what happens. Stay tuned for updates.