Investing in real estate has long been one of the most reliable forms of capital growth.
Today, more and more investors are turning their attention to Spain, especially to the sunny coasts of Costa del Sol and Costa Blanca.
Why there? Because it’s not just financial potential, but also a unique lifestyle that can be combined with profitable rentals. A rental property – especially in popular resorts such as Marbella, Estepona, or Torrevieja – can generate regular rental income. Short-term rentals during the tourist season can produce very attractive profits, and in some locations, even off-season. In many cities, the income from rentals during the holiday season can cover the property maintenance costs for the entire year. Additionally, in an era of inflation and uncertain financial markets, real estate is seen as a stable haven.
The Spanish market – especially in tourist regions – is characterized by relatively high resilience to fluctuations. The country’s attractiveness to tourists, expats, and retirees from all over Europe ensures that rental demand remains high. Moreover, some locations on the Spanish coast are experiencing dynamic development – infrastructure is improving, new investments are emerging, and the number of visitors is growing year by year.
By choosing the right moment and location, one can count not only on rental profits but also on an increase in property value over several years. Of course, like any investment, this one also carries certain risks. Renting, although profitable, requires engagement – or external management. One must account for repair costs, cleaning, utilities, and in the case of short-term rentals – also costs of managing reservations and guest communication. Fortunately, many companies in Spain offer comprehensive rental management services, allowing investors to profit remotely.
The rental market in Spain is subject to local regulations – some regions introduce limits or requirements for short-term rentals. Additionally, tourism seasonality can cause fluctuations in income. In 2025, changes occurred in tourist rentals. Property owners in Spain who plan short-term rentals should update their knowledge about changes in regulations. The new law No. 1/2025, which came into effect on April 3, 2025, introduced significant changes to property law regulations, particularly regarding tourist rentals. First and foremost, before starting short-term rental activities, property owners will need to obtain formal consent from the owners’ community. To approve tourist rentals, acceptance from at least 3/5 of the community members will be required. The decision on rental will be made by a simple majority vote, and after announcing the voting results, there is a 20-day period during which community members can object. Lack of reaction is considered as consent. Property owners planning tourist rentals should submit a request to convene a meeting of the owners’ community to formally submit an application authorizing them for tourist rentals, obtain consent from at least 3/5 of the community members’ votes, wait 20 days after distributing the meeting minutes for community members to express any potential objections. Lack of response within the required period is treated as consent. Renting property for tourist purposes without community consent will be prohibited, even if this activity is not explicitly forbidden in a given region.
What about already issued licenses? The law does not apply retroactively, meaning owners who obtained a license before April 3, 2025, will not be required to apply for additional permission, unless the community had previously introduced a ban on tourist rentals.
Before purchasing, it’s worth checking local regulations and the current legal situation in a given locality (e.g., requirements for a tourist license). If you are a property owner and intend to rent it out for tourism, it’s best to take appropriate steps now to avoid legal problems in the future.
It’s also worth being aware that, as everywhere, problems with tenants can occur here too – payment delays, damages, or difficulties in enforcing contracts. In such cases, it is recommended to use professional contracts that protect the owner’s interests and consider rental insurance. Investing in rental properties in Spain can provide stable passive income, protection of capital against inflation, a real chance for investment value growth, and additionally… the opportunity to use your own property under palm trees whenever you feel like it. However, it is not a completely hands-off investment – it requires knowledge, market analysis, and often cooperation with local specialists. But for those who are ready to engage (or outsource management to professionals), it can be a perfect choice. Want to check which location will be best for your investment goals? Or maybe you’re looking for a specific offer? Leave your contact – we’ll suggest where it’s profitable to buy today.
