{"id":258,"date":"2025-05-06T07:59:30","date_gmt":"2025-05-06T07:59:30","guid":{"rendered":"https:\/\/toro-abogados.com\/en\/?p=258"},"modified":"2025-05-06T07:59:31","modified_gmt":"2025-05-06T07:59:31","slug":"new-rules-for-holiday-rentals-in-malaga-in-2025-essential-guide","status":"publish","type":"post","link":"https:\/\/toro-abogados.com\/en\/2025\/05\/06\/new-rules-for-holiday-rentals-in-malaga-in-2025-essential-guide\/","title":{"rendered":"New Rules for Holiday Rentals in Malaga in 2025: Essential Guide"},"content":{"rendered":"\n

Are you thinking of investing in a holiday home in Spain, but wondering about the new rules for holiday rentals in Malaga? In this exclusive interview, the Rinc\u00f3n team interviewed Francisco Javier Toro D\u00edaz\u2014an experienced lawyer since 1997, registered with the Bar Association of Malaga and founder of Toro Abogados\u2014to break down the legal basics of buying holiday rental property on the Costa del Sol in 2025.<\/p>\n\n\n\n

From updated tourist rental rules to common legal pitfalls, and how to avoid them, this article offers expert guidance for anyone buying property in Malaga for personal use, rental income, or both. The good news? With the right guidance and due diligence, the Costa del Sol is a safe and profitable place to invest.<\/p>\n\n\n\n

What are the most important legal requirements foreigners should know when buying a second home on the Costa del Sol in 2025?<\/strong><\/p>\n\n\n\n

The Costa del Sol continues to be one of the top destinations for foreign buyers seeking a second home, especially citizens from Europe, Saudi Arabia, Kuwait, and recently, China. However, it\u2019s essential that buyers understand the Spanish legal framework and follow the necessary legal steps to ensure a safe and compliant transaction. The first and most important recommendation is to seek independent legal advice from a qualified lawyer\u2014someone not affiliated with the estate agent or property developer. The key legal steps include:<\/p>\n\n\n\n

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  1. Foreigner Identification Number (NIE)<\/strong>
    All foreign buyers must obtain an NIE (N\u00famero de Identificaci\u00f3n de Extranjero) prior to purchasing property in Spain. This is required for any legal or tax-related action, including buying real estate. It can be requested via the Spanish Consulate in the buyer\u2019s home country or in person at a National Police Station in Spain. The process is often simplified by granting power of attorney to a lawyer to do this for you.<\/li>\n\n\n\n
  2. Spanish bank account<\/strong>
    While not obligatory, opening a Spanish bank account is highly recommended as most payments during the buying process\u2014reservation fees, deposits, taxes, utility bills\u2014must be made through a Spanish bank. The buyer will also need to provide tax documentation to the bank.<\/li>\n\n\n\n
  3. Legal due diligence on the property<\/strong>
    Before committing to any contract, thorough legal due diligence is essential. This includes:<\/li>\n<\/ol>\n\n\n\n

    Verifying ownership and any existing charges or encumbrances with the Land Registry.
    Checking the urban planning and legal status of the property.
    Confirming there are no outstanding debts on the property (e.g. council tax, community fees).
    Verifying the legality of any extensions or modifications.
    This process should always be handled by an independent property lawyer. Urban planning regulations, especially in areas like Marbella and inland municipalities, can be complex\u2014so this step is critical.<\/p>\n\n\n\n

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    1. Reservation and deposit contract (\u201cContrato de Arras\u201d)<\/strong>
      It\u2019s common practice to sign a private deposit contract (\u201ccontrato de arras\u201d) with a 10% down payment. This contract must be drafted by a lawyer and clearly outline deadlines, conditions, and consequences of breach by either party.<\/li>\n\n\n\n
    2. Public deed and registration<\/strong>
      The final transaction must be completed before a notary and registered at the Land Registry. The buyer can attend in person or through a notarised and apostilled power of attorney.<\/li>\n\n\n\n
    3. Property taxes and administrative fees in 2025<\/strong>
      Property tax varies, depending on whether the property is a new build or a resale. Depending on this, you could be liable for one tax or another (not both):<\/li>\n<\/ol>\n\n\n\n

      Tax for newly built properties: 10% VAT + 1.2% Stamp Duty (AJD) in Andaluc\u00eda.
      Tax for resale properties: 7% Transfer Tax (ITP) in Andaluc\u00eda (2025 rate).
      In addition to the property tax above, buyers should also budget for additional costs such as notary fees, Land Registry charges and administrative costs\u2014these typically add up to around 10% of the purchase price.<\/p>\n\n\n\n

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      1. Legal and tax representation<\/strong>
        Buyers who are not Spanish residents are strongly advised to appoint a legal and tax representative in Spain. This person handles administrative matters, tax payments, and communication with public bodies. Buyers also need to declare their ownership annually via the non-resident tax form (Model 210), even if no rental income is earned.<\/li>\n\n\n\n
      2. Anti-money laundering regulations<\/strong>
        Spain enforces strict EU anti-money laundering laws. Buyers must justify the source of the funds used to buy the property. Banks, notaries and lawyers are legally obliged to verify this\u2014especially for amounts over \u20ac100,000. All payments must be traceable (e.g. via bank transfer from the buyer\u2019s own account).<\/li>\n\n\n\n
      3. Other considerations<\/strong>
        Home and liability insurance: Not legally required, but strongly advised.
        First Occupancy Licence: In newly built properties, this is necessary for connecting utilities. It is also required for short-term rentals.
        Short-term rental regulations: The property must comply with Andalusian tourism laws and be registered with the Junta de Andaluc\u00eda for tourist rentals.<\/li>\n<\/ol>\n\n\n\n
        \"\"<\/figure>\n\n\n\n

        Our expert interviewee, lawyer Francisco Javier Toro D\u00edaz, has practiced law since 1997<\/p>\n\n\n\n

        <\/p>\n\n\n\n

        What advice would you give someone looking to invest in a property for holiday lets? Have there been any changes in the rules for holiday rentals in Malaga?<\/strong><\/p>\n\n\n\n

        Firstly, it\u2019s important to understand that short-term letting is a very common and profitable investment in Malaga. However, due to the growing popularity of tourist rentals and the resulting shortage of long-term housing, some social pressure has led to tighter controls and regulations in the rules for holiday rentals in Malaga.<\/p>\n\n\n\n

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        1. Confirm zoning and community rules<\/strong>
          Before buying, make sure:<\/li>\n<\/ol>\n\n\n\n

          The residents\u2019 community hasn\u2019t voted on bylaws that prohibit holiday letting. Recent legal reforms to the rules for holiday rentals in Malaga, now allow residents\u2019 communities to limit or ban short-term rentals with a qualified majority.
          The property has a valid First Occupancy Licence or equivalent.
          The land classification allows for tourist use (particularly important for rural or protected plots).<\/p>\n\n\n\n

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          1. Mandatory registration with the Tourism Registry of Andaluc\u00eda<\/strong>
            Under Decree 28\/2016, modified by Decree 13\/2020, anyone offering short-term rentals must register the property with the Junta de Andaluc\u00eda. This registration requires a responsible declaration and brings several obligations.<\/li>\n\n\n\n
          2. Compliance with technical and quality standards<\/strong>
            The property must meet minimum standards, such as:<\/li>\n<\/ol>\n\n\n\n

            First Occupancy Licence or equivalent document.
            Adequate furnishings and equipment.
            Air conditioning (May\u2013Sept) and heating (Oct\u2013April).
            First aid kit, complaint forms, tourist information.
            Cleaning before each guest\u2019s arrival.
            Visible instructions for appliances and house rules.
            Failure to comply with these requirements can lead to fines.<\/p>\n\n\n\n

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            1. Tax and fiscal obligations<\/strong>
              Holiday rental income is taxable for both residents and non-residents:<\/li>\n<\/ol>\n\n\n\n

              Non-residents must declare income via Model 210.
              Companies must declare profits under corporate tax rules.
              VAT applies only if hotel-like services are offered (e.g. breakfast, daily cleaning).
              Otherwise, no VAT, but income must still be declared.
              Additional tax filings may apply if staff are hired or extra services are provided.<\/p>\n\n\n\n

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              1. Traveller registration<\/strong>
                One of the important rules for holiday rentals in Malaga is that owners or managers must register as hospitality providers with the National Police and file guest information in accordance with citizen security regulations.<\/li>\n\n\n\n
              2. Appoint a property manager if you live abroad<\/strong>
                If the owner lives outside Andaluc\u00eda, it\u2019s strongly advised to work with a legally registered property management company. This ensures proper handling of guest services, maintenance, cleaning, check-in\/check-out, and tax declarations.<\/li>\n\n\n\n
              3. Additional licences in certain municipalities<\/strong>
                Some areas, like Malaga, Marbella, Seville and Granada, are implementing extra municipal regulations in 2025. These may include additional permits, restrictions by zone, or minimum distance requirements between holiday lets. Always check the local urban plan before buying.<\/li>\n<\/ol>\n\n\n\n

                <\/p>\n\n\n\n

                What are the most common legal mistakes foreign buyers make? How can they be avoided?<\/strong><\/p>\n\n\n\n

                The most common mistake I see is not hiring an independent lawyer. Some buyers rely on the estate agent or intermediary, assuming shared language or nationality guarantees trust. This can create a conflict of interest where agents want a quick sale, but not necessarily a secure one.<\/p>\n\n\n\n

                Buying a property is one of the biggest decisions you\u2019ll ever make, one where you can\u2019t afford to take risks. Think of it like getting on a plane: what gives you peace of mind isn\u2019t just the aircraft itself, but the experience of the pilot. You want someone with hours and hours of flight time. Choosing a lawyer is no different. Experience matters.<\/p>\n\n\n\n

                In your opinion, is the Costa del Sol still a good place to invest in a holiday home, considering the new rules for holiday rentals in Malaga?<\/strong><\/p>\n\n\n\n

                From both a legal and strategic standpoint, absolutely yes. The region offers:<\/p>\n\n\n\n