The tourist rental market in Spain is undergoing a period of significant regulatory transformation. Since April 3, 2025, the new Horizontal Property Law establishes clear rules on who can dedicate their property to short-term vacation rentals and under what conditions. For property owners and investors in Estepona and the Costa del Sol, understanding this reform is now a fundamental part of any purchase decision.
Demand for tourist accommodation in the area has continued to grow in recent years. However, this growth has also intensified neighborhood conflicts and pushed lawmakers to act. The result is a regulation that gives more weight to homeowners’ associations and fundamentally changes the conditions under which a tourist apartment can operate in a residential building.
If you are considering investing in properties on the Costa del Sol for vacation purposes, this guide explains everything you need to know.
What is the Horizontal Property Law?
Law 49/1960 regulates the organization and coexistence in buildings divided into apartments or commercial units with shared elements. It is the legal framework that defines the rights and obligations of each property owner within a homeowners’ association: from the distribution of expenses to the rules governing the use of common areas, as well as the procedures for making collective decisions.
Its scope applies across the entire national territory, although autonomous communities with their own civil law, such as Catalonia, have specific regulations that may differ from the national text. In the case of Andalusia, the national law applies directly, making it especially relevant for those who buy or invest in municipalities such as Estepona, Marbella, or Sotogrande.
The law has undergone several modifications over the years. The most recent—and most impactful for the real estate market—came with Organic Law 1/2025, which entered into force in April 2025 and specifically amended Articles 7 and 17.12 of the law in relation to tourist rentals.
New Horizontal Property Law: what has changed?
Before the reform, the framework was relatively straightforward: a property owner could use their home for tourist rentals unless the community bylaws explicitly prohibited it. If the bylaws said nothing, the owner was free to proceed.
Since April 3, 2025, this logic has been completely reversed. The new Horizontal Property Law requires that any owner wishing to start a tourist rental activity must first obtain express approval from the homeowners’ association. It is no longer enough for it not to be prohibited; it must be actively authorized.
This authorization requires the favorable vote of three-fifths of the total number of owners, who must also represent three-fifths of the building’s ownership shares. The same qualified majority can be used to limit, condition, or prohibit the activity, as well as to approve special fees of up to 20% on common expenses for properties used for this purpose.
The reform responds to growing social pressure in areas with high tourist density, and Estepona is a clear example. The rise of short-term rentals on the Costa del Sol, along with their impact on community coexistence and access to housing, was one of the factors that accelerated the need to regulate this type of activity more precisely.
An important point: the law does not have retroactive effects. Properties that were already registered and legally operating as tourist rentals before April 3, 2025, can continue their activity under the previous conditions. However, the homeowners’ association can still approve, with the same majority, surcharges on their fees or new limitations on the use of common areas.
Tourist rental without permission: what does Article 7.2 say?
Article 7 of the Horizontal Property Law regulates the obligations of property owners and occupants regarding the use of their homes within the community. Following the reform introduced by Organic Law 1/2025, this article now includes three sections relevant to tourist rentals.
Section 7.2 prohibits carrying out in the property or elsewhere in the building activities that are forbidden by the bylaws, harmful to the property, or that violate general provisions on disruptive, unhealthy, harmful, dangerous, or illegal activities. This section already existed prior to the reform and has traditionally been the main legal basis for taking action against neighbors causing disturbances.
The new section 7.3, introduced by Organic Law 1/2025, directly addresses tourist rentals: it establishes that any owner wishing to carry out this activity must first obtain express approval from the homeowners’ association, in accordance with Article 17.12. This addition removes the interpretative ambiguities that previously complicated legal proceedings.
When can a neighbor be reported?
Article 7.2 allows action to be taken when the activity is disruptive or harmful to the rest of the community. In the context of tourist rentals, the most common situations include repeated noise outside permitted hours, intensive and conflictive use of common areas such as pools or elevators, behavior that disrupts normal coexistence within the building, and operating a tourist rental without the express authorization of the homeowners’ association required since April 2025.
Case law from the Supreme Court, reflected in rulings 1232 and 1233/2024 of October 3, already recognized that short-term rentals can generate objective disturbances that justify intervention by the community, especially in areas with high tourist activity.
Legal procedure within the homeowners’ association
The process set out in Article 7.2 follows a defined sequence. First, the president of the homeowners’ association, either on their own initiative or at the request of any owner, formally requires the offender to immediately cease the activity, with a warning of legal action. This notice must be delivered through a method that provides proof of receipt, typically via registered burofax.
If the owner ignores the request, the president, with prior authorization from the homeowners’ meeting convened for this purpose, may file a cessation action before the courts. The judge may adopt precautionary measures immediately, including the provisional suspension of the activity.
Possible sanctions
If the ruling is in favor of the claim, the judge may order the definitive cessation of the prohibited activity and compensation for damages. In addition, the judge may impose the deprivation of the right to use the property for a period of up to three years, depending on the severity of the infringement and the harm caused. If the offender is not the owner but an occupant, the ruling may terminate all their rights to the property and order their eviction.
Can a property be rented out as a tourist rental without authorization?
Since April 3, 2025, the answer is clear: no, at least not for new activities. Any owner who wants to start a tourist rental in a building subject to the Horizontal Property Law must obtain the favorable vote of three-fifths of the owners and ownership shares before beginning operations.
The building’s bylaws remain relevant. If they already included an express prohibition, it is still valid. However, even in the absence of a statutory prohibition, express authorization from the homeowners’ meeting is now an unavoidable legal requirement. The authorization agreement does not need to be registered in the Land Registry to be valid within the community, although it is advisable to formalize it in a public deed and register it so that it is enforceable against third-party buyers.
On the other hand, community authorization does not replace the administrative license. To legally operate a tourist rental property in Estepona, the owner must also comply with Andalusian regional regulations and register the property in the Andalusian Tourism Registry. As of July 1, 2025, registration in the new State Registry of Tourist Rental Service Providers, created by Royal Decree 1312/2024, is also mandatory. This registry assigns each property a unique identification number that must appear in all listings and contracts.
Impact of the regulation on property owners in Estepona
Estepona is one of the municipalities on the Costa del Sol where short-term rentals have experienced the most sustained growth. Its positioning as an alternative to Marbella, with more accessible prices and a diverse residential offering, makes it an attractive destination for both tourists and international investors.
In this context, the updated Horizontal Property Law adds a layer of complexity that should be anticipated. Those who were already operating legally before April 2025 can continue their activity, although they may face additional charges in community fees if the homeowners’ association decides so. For new buyers, the scenario is different: purchasing a property with the intention of using it for tourist rentals first requires understanding the community’s position on the matter.
The attitude of homeowners’ associations can vary greatly between buildings. In some communities, prohibition agreements have already been adopted with the required majority. In others, the issue has not yet been put to a vote. Buying without verifying this aspect can compromise the expected profitability of the investment.
According to the experimental statistics from the National Statistics Institute (INE), in November 2025 there were 329,764 tourist properties listed on platforms in Spain, representing a year-on-year decrease of 12.4%, the largest in the historical series, partly attributable to increasing regulatory pressure on this type of activity.
Key considerations before buying a property for tourist rental
Review the homeowners’ association bylaws
The first step before any purchase aimed at tourist rental is to request the homeowners’ association bylaws and the recent meeting minutes. The bylaws may contain express prohibitions that prevent vacation use regardless of what the general law states. The minutes allow you to verify whether prohibition agreements have already been adopted or if the issue is under discussion among the residents.
Assess legal feasibility
Knowing the bylaws is not enough if their content is not correctly interpreted in relation to current regulations. A lawyer specializing in real estate law can assess whether the property can be used for tourist rentals, what steps must be taken to obtain community authorization, and what administrative documentation is required at the regional and national levels. This prior evaluation helps avoid surprises once the purchase has been completed.
Get advice from real estate experts
Working with a local real estate agency that has in-depth knowledge of the market and current regulations makes a real difference. At Cabanillas Real Estate, we have been operating in Estepona and the Costa del Sol for over 60 years, with a team that includes experts in urban planning law. When we assist with a purchase aimed at investment, legal analysis and the feasibility of the intended use are part of the process from the very beginning. You can explore our available properties in Estepona or contact us directly for personalized advice.
Conclusions
The new Spanish Horizontal Property Law represents a structural shift in the regulation of tourist rentals. The requirement for express authorization by a qualified majority makes the homeowners’ association a central player in any decision regarding vacation use, and a lack of awareness of this rule can have significant economic and legal consequences.
For investors interested in Estepona and the Costa del Sol, the message is clear: the profitability of a property intended for tourist rental now largely depends on its regulatory status within the community. Reviewing bylaws, assessing the position of the homeowners’ association, and seeking specialized advice are steps that should come before any purchase is finalized.
At Cabanillas Real Estate, we are here to guide you through that process. If you are considering buying a property in Estepona for investment or tourist rental purposes, contact us and we will help you make the right decision with all the necessary information on the table.
Si tienes consultas puedes contactar en sales@cabanillasrealestate.com
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