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05
Sep
05-09-2024
Limitations on Tourist Licenses

On July 24th, the Spanish Government submitted a legislative amendment to the Congress of Deputies with the aim of limiting the proliferation of tourist licenses. The amendment will not have retroactive effects and will not impact on tourist flats already in operation.

The Government’s aim is to limit the impact that the excessive number of properties holding tourist licenses may be having on the Spanish housing market.

Among the key changes are that new flats intended for tourist use will require the permission of the community of property owners, meaning the consent of the other residents. If they do not have the permission of the community of property owners, the latter will be able to demand the cessation of the activity with the threat of legal action.

In this regard, new tourists’ properties will need express permission by the favourable vote of three-fifths of the owners.

In addition, in the absence of specific national regulations, regional and local authorities will have the power to impose further restrictions or limitations on tourist licenses.

A special case in point is Barcelona. The City Council has already announced that it will convert the current 10,101 legally registered tourist properties in Barcelona into residential housing. The plan is to revoke all licences in November 2028, and from 2029 onwards no properties will be allowed to operate with this use.

Regarding potential compensation for owners of tourist accommodation, the mayor explained that the five-year grace-period will be considered sufficient compensation.

Unsurprisingly, the Association of Tourist Apartments of Barcelona (APARTUR) is already lobbying the City Council to reconsider and explore alternative measures. Legal challenges are expected, likely involving appeals to the Constitutional Court, and its decisions will need to be closely monitored.

We will observe how this matter develops. It will also be of significant importance in the upcoming elections, both regional and local, as some parties may continue to support this measure and cancel all tourist licenses in 2029. Conversely, the measure could be rendered ineffective depending on whether changes are made to the regulations and their enforcement, all of which, given the current political context, remains uncertain at this time.

Other Spanish cities with high levels of tourism are also considering similar measures. For example, Valencia has approved a provisional suspension of tourist licenses for one year, with the possibility of extending it for another year, and Seville has expressed its intention to eliminate tourist licenses in the city centre. This is a crucial issue for tourist- heavy areas, and further developments are anticipated.

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