Holiday letting on the Costa del Sol in 2026: licences, restrictions and real returns

The Costa del Sol is one of Europe's strongest short-let markets: Málaga airport handled more than 26.7 million passengers in 2025, according to Aena. Yet the rapid spread of tourist flats has led the Andalusian government, town halls and the Spanish parliament to tighten the rules over the past two years. Anyone buying to let today needs to know, before signing, whether that particular property can be let legally at all.

This article reflects the position in October 2026. Rules are moving quickly, so any specific property needs a fresh check.

What is a VFT, and how do you get one?

In Andalusia, a home let to tourists is a vivienda con fines turísticos (VFT). The rules come from Andalusian Decree 28/2016, amended by Decree 31/2024. The essentials:

• the property must be entered in the Andalusian Tourism Register (RTA) by means of a responsible declaration (declaración responsable), which gives you a VFT number that must appear in every listing;
• the property must meet minimum standards for equipment and safety, and the number of guests is capped;
• since March 2025 (under Andalusian Decree-law 1/2025), you must also show, before registering, that the town hall allows tourist use at that location; the same decree-law gave municipalities the power to limit or suspend new licences;
• since December 2024, guests must be reported through the Spanish authorities' SES.Hospedajes system.

A VFT licence belongs to the property, not to the owner, but the register must be updated when ownership changes.

The community's say: the three-fifths rule

Since 3 April 2025, under a reform of Spain's Horizontal Property Law (Ley de Propiedad Horizontal), new holiday letting in an apartment building can only start if three fifths of the owners, also representing three fifths of the ownership shares, expressly approve it. Lawfully registered flats that were already operating are not affected.

On top of that, if a building's statutes expressly prohibit lodging use, Spanish case law holds that letting is not allowed, licence or no licence.

Where are new licences no longer available?

The table draws on 2026 market and press summaries and is for guidance only. The exact position, street by street and building by building, must be checked with the town hall.

What changed nationally?

The national registration number. From 1 July 2025, short lets also needed a national registration number (NRUA) to be advertised on platforms. In a judgment published in May 2026, Spain's Supreme Court struck down the provisions creating that register because they overlapped with regional powers. Platforms' data-reporting duties remain, and in Andalusia the regional VFT registration is once again the main requirement.

The VAT debate. At the end of September 2026, the Spanish government issued a decree-law that would have applied 10% VAT to tourist stays of under 30 days from 1 December 2026. Parliament declined to validate it on 2 October, but the government said it would bring it back. At the time of writing the outcome is open, so a letting calculation should include a with-VAT scenario.

A sober return calculation

Listings often quote gross yields. Let's see what actually remains on a €420,000 two-bedroom flat in Estepona. Income and costs below are assumptions, not market data and not a promise; the point is how to do the sum.

Measured against total outlay (price plus roughly €36,600 of buying costs), that is a net cash yield of about 2.2%, with no personal use and no mortgage.

If you also use the flat yourself for a few weeks, income falls and you pay imputed-income tax for those days. Our tax guide explains how.

What makes a good letting property?

• A legal licence, or a clear path to one: an existing VFT number, or a town and building where a new licence is realistic.
• Walking distance: beach, restaurants, shops. Guests rarely want to drive every day.
• Year-round appeal: Marbella, Málaga and Fuengirola see stronger winter demand than places that only come alive in summer.
• Easy to run: a well-kept complex, a reliable local operator, simple key handover.
• Terrace and air conditioning: guests expect both.

Checklist before buying to let

1. Is there a valid VFT number, and is it in the RTA?
2. What do the building's statutes say about lodging use?
3. Has the community passed any resolution on holiday letting since April 2025?
4. Is there a moratorium or saturation zone in the town, and what applies on that street?
5. Does the flat meet Andalusia's current equipment and safety standards?
6. What are the community fees, and how much have they risen in recent years?
7. If it has been let before, what were actual occupancy and income? Ask for invoices or platform statements, not just estimates.

What to ask a local operator

• What is the fee, and what does it include (cleaning, linen, small repairs, guest registration)?
• How do they price by season, and what winter occupancy do they assume?
• Who handles complaints and dealings with the community?
• How often, and in what form, will you receive statements?

A good operator gives cautious numbers. If someone promises high occupancy all year, ask for real figures from comparable flats.

The alternative: mid-term and long-term letting

Where new tourist licences are not available, mid-term letting (a few months, for winter stays or remote workers) or long-term letting may make sense. Different laws apply, tenants' rights are stronger, and regulation of seasonal lets is on Spain's agenda in 2026. Income is more predictable, though usually not higher.

If you are buying to let, we only show you properties where the licensing position is clear. See our investment advisory or get in touch.

This article is general information and not legal or tax advice. Regulation changed several times during 2025 and 2026; always check the current position before buying.

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