By Carlos Baos (Lawyer) •
Published: 24 Oct 2024 • 18:00
• 2 minutes read
Spanish High Court confirms Tourist rentals can be prohibited by the community of owners. What you need to know.
After years of uncertainty, one of the most controversial, contentious, and tense issues in recent years for homeowners’ associations has finally been cleared up. Two recent rulings from the Spanish High court have swiftly put an end to the doubts that existed until now. The answer is clear: yes, tourist rentals can be prohibited. We analyse it in our weekly column and highlight the key points of this significant ruling.
Limit, Condition or Prohibit. The origin of the conflict.
The ability of homeowners’ associations to “ban” tourist rentals, foreseen in the Horizontal Property Act, has been a source of confusion, with various courts in Spain offering contradictory interpretations. The reason? A poorly worded and ambiguous law that allowed for the community of owners to “limit” or “condition” these rentals. But did not explicitly speak about “ban” or “prohibit”. This ambiguity led each judge to interpret the law differently: some accepted the possibility of a ban, while others did not. Some ruled that a 3/5 majority was sufficient, while others disagreed. A legal quandary that primarily harmed citizens, who were left uncertain about what to expect.
New Position of the Spanish High Court: A Ban is Possible.
What does these new rulings say? In summary, they clarify that while property owners have a constitutional right to private property and can do as they wish with their property (as long as it’s legal), the community also has the right to impose prohibitions that protect the general interest. In this case, the intent of the legislator who crafted the law was to allow for bans, and therefore it is understood that:
- A ban is possible.
- A 3/5 majority is sufficient, and unanimity is not required.
From now on, many prohibitions of these type of rentals are expected in communities of owners. However, you must be aware that these bans are not retroactive. So, it is vital to check if the properties renting to tourists are doing it legally or illegally. That is, with or without license. However, recent legislative changes (both in the national and regional level) suggest that tourist rentals could eventually come to an end in communities. Although the path is not anticipated to be easy. For instance, in Valencia, since August, touristic licenses must be renewed every 5 years. If the community of owners bans the activity, renewal may not be granted. On top of that, the state government wants to implement a special registry to do this type of rentals. If there is a prohibition in place in the community, owners of touristic rentals might not be authorised to advertise their rentals online, etc. Although we won’t know for sure until the new rules are implemented.
At White-Baos Lawyers we are experts in Tourist Rentals. If you are having problems with your community of owners, and you seek legal expert advice on this matter, reach out to us without hesitation.
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Carlos Baos (Lawyer)
White & Baos.
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E-mail: [email protected]
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