El blog de Maria

If you own a property in the Valencia region and rent it out, you’ve probably heard about the 2024 regulatory change that affects how short and medium-term stays must be managed. Many owners still feel unsure: Should I use my tourist licence for all stays? Or can I use a seasonal contract under the LAU for longer holiday lets?

The good news is that the rules are now much clearer.

Tourist Rentals (VUT) – Up to 10 Nights

• Applies to stays of 10 nights or fewer.

• Requires a tourist licence (VUT number) registered with the Generalitat Valenciana.

• Guest data must be registered with the police (SES.Hospedajes).

• Advertising is mainly through tourist platforms such as Airbnb, Booking, etc.

• Services such as bedlinen and cleaning are expected, in line with the tourism model.

Seasonal Rental Contracts (LAU) – 11 Days or More

• Applies to stays of 11 days or more, whether for holidays, study, or temporary work.

• Covered by the Ley de Arrendamientos Urbanos (LAU) as a seasonal let (uso distinto de vivienda).

• No tourist licence is needed.

• The deposit is two months’ rent, and it must be lodged with the Generalitat Valenciana within one month of signing.

• Guest registration with the police is not required.

• Should be advertised as a seasonal or medium-term rental, not as a tourist let, to avoid confusion with tourism regulations.

Why This Matters

Understanding the difference between the two regimes is essential if you want to:

• Avoid fines or the risk of losing your tourist licence.

• Maximise your rental income by legally accepting both short stays and longer bookings.

• Provide tenants with the correct contract type, protecting both you and them.

Quick Comparison

Final Thought

In short:

• Up to 10 nights = Tourist let (VUT).

• 11 days or more = Seasonal rental under the LAU.

This distinction allows property owners in Valencia to combine both systems safely — short tourist lets on licensed platforms and longer stays with proper seasonal contracts.

Have you tried offering seasonal contracts for longer holiday bookings?
Share your questions and experiences here — this is a common issue for many property owners, and your input could help others!

A landmark ruling from Spain’s Audiencia Nacional on 28 July 2025 has brought very welcome news for non-EU property owners who rent out their homes in Spain.

For years, there has been a clear disparity in how rental income was taxed depending on whether you were resident in the EU/EEA or outside it.

• EU/EEA residents could deduct all relevant expenses – such as repairs, community fees, insurance, mortgage interest – and then pay 19% tax on the net rental income.

• Non-EU residents (including British owners since Brexit, as well as Swiss, US, Canadian and many others) had no such right. They were forced to pay 24% on gross income, with no deductions allowed at all.

This system has now been declared unlawful by the Court. The judges confirmed that it violates EU law (Article 63 of the Treaty on the Functioning of the European Union) because it restricts the free movement of capital not only between EU states but also between the EU and third countries.

What does this mean in practice?
Non-EU owners who rent out property in Spain can now deduct their expenses when filing their Spanish Non-Resident Income Tax return (Modelo 210). Even more importantly, they may be entitled to claim back overpaid tax from the last four years by requesting a rectification of their returns.

The court did not yet address the issue of the different tax rates (24% vs 19%), but cases are ongoing and many lawyers expect further progress on this front too. For now, the key victory is that the door to deductions has been opened.

Why is this important?
For many non-EU landlords, the inability to deduct costs meant paying tax on money they never truly earned. For example, if you rented out your property for €10,000 a year but had €3,000 in expenses, EU landlords paid tax on €7,000, while non-EU landlords paid tax on €10,000. This could easily make the difference between profit and loss.

The ruling is therefore not only a matter of fairness, but also of financial relief for thousands of non-EU property owners.

Next steps
If you are a non-EU property owner renting in Spain, now is the time to review your situation.

• You can file future returns including deductions.

• You can consider claiming back overpaid tax for the past four years.

This is a major step towards tax equality in Spain for non-EU landlords.

Have you been affected by this rule? Do you think you will be making a claim? Share your thoughts in the comments below.

Hello dear EOS readers! 
We hope you’re enjoying a well-deserved summer break — whether that’s on the beach, exploring Spain, or simply relaxing with family.

After spending the last few years very focused on expanding our services beyond our well-known stage of off-plan property claims, this year we want to dedicate more time to this beautiful EOS community, of which we’ve proudly been a part since 2006.

And we’ve got great news: over the coming months we’ll be sharing more content than ever — not just here on the blog but also through podcasts, guides, and practical tips to make your Spanish journey smoother. So stay tuned!

Let’s begin with one of the most common questions we hear from our favorite group of readers — retirees dreaming of or already enjoying life in Spain:

“How much time can I spend outside Spain without losing my residency?”

The rules in simple terms

• No more than 6 consecutive months outside Spain in any given year.

• No more than 10 months in total outside Spain during the first 5 years of residency.

If you follow these rules, you’ll be able to renew your residency without problems and, after 5 years, apply for long-term (permanent) residency.

If you don’t — for example, by spending 7 months abroad in one go, or a total of 12 months over the first 5 years — you risk losing your residency and having to start again.

Real-life examples

• Example 1: Within the rules
  A retired couple spends 2 months every winter visiting their children in the US. After 5 years, they’ve been away for 10 months in total — perfectly fine.

• Example 2: Still okay
  One year you’re abroad for 4 months, but then just short trips in the following years. Total time away is still under 10 months in 5 years. No problem.

• Example 3: Breaking the rule
  You’re away for 7 consecutive months to help a family member. Even if the total is under 10 months, the 6-month consecutive rule is broken, so you could lose your residency.

• Example 4: Too much travel
  You love travelling and end up spending 12 months abroad in 5 years. That’s above the 10-month total limit, which could put your residency at risk.

A quick tax note

Remember that holding an NLV means Spain should be your main home. If you spend more than 183 days in Spain in a calendar year, you’re considered a Spanish tax resident and must declare your worldwide income here. For many retirees this is perfectly manageable, but it’s worth checking with a tax advisor so there are no surprises.

If you have any questions, please leave your comments below — we’d be happy to answer them.

https://www.costaluzlawyers.com/contact/
_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es