Investing in Spain: The Crucial Differences in Rental Licenses Between Costa Blanca and Costa Sol (2026 Update)

Anyone buying real estate in Spain in 2026 with an eye on holiday rentals is entering a legal minefield. Since the Spanish government and the autonomous regions tightened the reins to address the housing shortage, the rules for holiday rental licenses have changed drastically.

Below is an in-depth comparison between the Costa Blanca (Valencian Community) and the Costa del Sol (Andalusia), based on legislation, publications in El País, and advice from Spanish notaries and lawyers.

SYNOPSIS: THE CRUCIAL DIFFERENCES AT A GLANCE

1. COSTA BLANCA (VALENCIA): THE "5-YEAR AND 10-DAY" REGULATION

With Decree-Law 9/2024, the Valencian Community introduced one of the strictest laws in Spain. Law firms on the Costa Blanca point out three unique barriers you must overcome here:

A. The 10-day limit (Evading the LAU)

In Valencia, a rental is only considered "tourist rental" if the guest stays for 10 consecutive days or less. As soon as a guest stays for 11 days or longer, this legally falls under "seasonal rental" (alquiler de temporada), which is regulated by the national Urban Letting Act (LAU). This means that for rentals longer than 10 days, you do not need a tourist license (and are not even allowed to use it), but you must draw up a different type of contract.

B. The license expires after 5 years

This is a massive difference compared to the Costa del Sol. On the Costa Blanca, rental licenses are no longer for life. Any license applied for from August 2024 onwards automatically expires after 5 years. After 5 years, you must submit a new responsible declaration (declaración responsable) and prove that you still meet all (potentially stricter) rules and municipal regulations at that moment.

C. The crucial compatibility report (ICU)

Before you can apply for a license in Valencia at all, you must request an Informe de Compatibilidad Urbanística (ICU) from the municipality. Cities like Alicante and Valencia almost never issue these for apartments anymore, unless they are on the ground floor or have their own physically separate entrance from the street. In tourist villages on the Costa Blanca (such as Finestrat, Calpe, or Altea), this report is easier to obtain, but it remains a mandatory first step that can take 1 to 6 months.

2. COSTA DEL SOL (ANDALUSIA): "MUNICIPAL VETOES AND OCCUPANCY REQUIREMENTS"

Through Decree 31/2024 and subsequent 2025 legislation, the Andalusia region has emphasized the power of the municipalities and the Homeowners Association (HOA), combined with very strict quality requirements for the property itself.

A. Power to the HOA (The 3/5ths majority)

Since the legal changes, new landlords in Andalusia must be able to demonstrate that the Homeowners Association (Comunidad de Propietarios) agrees to the rental activities. Since April 2025, the rule dictates that a 3/5ths majority (60%) of all owners (who also represent 60% of the community shares) must approve, or the bylaws must explicitly allow holiday rentals. Existing licenses from before this date generally remain unaffected, unless the bylaws already contained an explicit ban at the time.

B. Physical comfort and surface area requirements

Andalusia strictly inspects habitability:

• A minimum of 25 m² of total surface area for the property and a minimum of 14 m² per guest.
• A maximum capacity of 15 people per property (max. 4 people per bedroom).
• Fixed air conditioning and heating systems in all bedrooms and the living room. Portable units or fans are no longer approved by inspectors.
• At least 1 bathroom per 4 guests (for more than 5 guests, 2 bathrooms are mandatory).

C. Definition up to 31 days

In contrast to the 10-day limit in Valencia, any consecutive rental up to 31 days to the same person in Andalusia qualifies as a tourist rental. Anything above that falls under the LAU.

3. LOCAL MORATORIUMS AND RESTRICTIONS (2026 SITUATION)

On both the Costa Blanca and the Costa del Sol, the autonomous license is worthless if the municipality says "No". Spanish notaries emphasize that prior to purchase, you must always check a nota simple and the municipal zoning plans.

• Málaga city (Costa del Sol): Has a near-total freeze (moratorium) on new rental licenses in the center and various surrounding neighborhoods.
• Marbella (Costa del Sol): No general freeze, but very strict checks on compatibility and regulations within gated communities.
• Alicante / Valencia (Costa Blanca): Very strict zoning. In practice, it has become virtually impossible to get a license for a regular apartment on a higher floor in the center of Alicante or Valencia.
• Finestrat / Benidorm (Costa Blanca): Policy here is still relatively flexible, provided the complex's HOA does not prohibit rentals.

CONCLUSION & BUYING ADVICE FOR THE INVESTOR

The difference in rental licenses between both regions largely dictates your investment strategy:

• Choosing the Costa Blanca? Keep the 5-year expiration of your license in mind. This means you must base your rental business case on a medium-term outlook, or take into account that you will have to comply with new rules after 5 years. Preferably buy new builds in zones where the municipality specifically encourages tourism (such as Finestrat) and ensure the HOA bylaws explicitly permit rentals.
• Choosing the Costa del Sol? Focus on physical requirements (air conditioning/heating per room, square meters) and the Homeowners Association. Preferably buy in complexes where rental activity is already high and where the bylaws explicitly permit renting, so you are not dependent on a 3/5ths vote from the neighbors.

Disclaimer: This overview is based on current legislation as of mid-2026. When purchasing real estate, always consult a specialized lawyer (abogado) or your real estate agent at ImmoMoment to verify the specific status of the property and local municipal ordinances.