New Vacation Rental Law in the Valencian Community: Why Buy a New-Build Property?

1. Maximum Duration for Short-Term Rentals

One of the most notable changes is the limitation on rental periods. Vacation homes can now be rented to the same tenant for a maximum of 10 consecutive days. This aims to clearly distinguish vacation rentals from other types of short-term leases, which fall under national regulations. Good news: you can still rent for longer periods! Keep reading to find out how.

2. Homeowners' Association Approval

To register a property for vacation rental, you must obtain a certificate from the homeowners' association confirming that tourist rentals are not prohibited in the building.

3. Mandatory Registration and Renewal

All vacation rentals must be registered in the Valencian Community Tourism Registry to obtain a registration number. This registration is valid for five years, after which it must be renewed. Properties registered before August 7, 2024, remain valid until August 8, 2029, at which point they must comply with the new regulations.

4. Ban on Room Rentals

The new law prohibits renting out individual rooms. Vacation rentals must be offered as entire properties to ensure greater privacy and safety for both guests and building residents.

5. Technical and Safety Requirements

Vacation rental properties must meet specific technical and safety standards, including:

• Evacuation Plan: Clearly displayed on the inside of the front door.
• Elevator: Required in buildings with four or more floors.
• Basic Amenities: Electrical outlets in every room, hot water, heating or air conditioning in main areas (living room or kitchen), internet connection (where available), a first aid kit, and a list of emergency numbers and the nearest medical center.
• Key Exchange: Public lockboxes are prohibited. A secure system for key handover and retrieval is mandatory.
  Regular cleaning services, linen changes, and maintenance are also required.

6. Minimum Equipment Requirements

The property must be fully furnished and equipped to ensure guest comfort. Essential features include:

• Equipped Kitchen: Refrigerator, oven or microwave, extractor fan, and an electric cooktop (at least two burners for up to four guests; three burners for more than five guests).
• Kitchenware: Plates, cutlery, and other essential utensils.
• Linens and Towels: Sufficient for the maximum occupancy.
• Television: Required in areas with broadcast coverage.

7. Fines and Penalties

Non-compliance with the new law can result in fines ranging from €10,000 to €600,000, depending on the severity of the violation. Common reasons for fines include incorrect location listings, failure to report property transfers, or offering illegal room rentals.

8. Transition Periods for Existing Licenses

If you already have a vacation rental license, the following rules apply:

• Licenses issued before July 1, 2018: No changes required.
• Licenses issued between July 1, 2018, and August 7, 2024: Must comply with the new regulations within five years and be renewed before 2030.
• Licenses issued after August 7, 2024: Must immediately meet all new requirements and be renewed every five years.

9. Urban Planning Approval and Cadastral Reference

Properties must have a municipal compatibility report confirming compliance with urban planning regulations. A unique cadastral reference is also mandatory for all official documents and rental agreements.

10. Starting the Rental Activity and Ownership Changes

Once you receive your license, you must begin renting within two months. If the property is sold, inherited, or transferred, you’ll need to apply for a new rental license to continue operating legally.

Why Invest in a New-Build Property?

With the introduction of Decree-Law 9/2024, vacation rental regulations in the Valencian Community have become stricter. If you're looking to invest in a rental property, new-build homes remain the best option—they’re easier to license and already meet the latest standards.

1. Flexible Rental Options for Better Returns

The new law classifies rentals by duration:

• Short-term (up to 10 days): Considered tourist rentals and must meet all legal requirements.
• Mid-term (11 to 90 days): Treated as temporary leases, not strictly tourist rentals.
• Long-term (over 90 days): Regulated under the Urban Lease Act (LAU).
  This means you can still rent your property for longer than 10 days, just under different regulations.

2. Easier Licensing with New-Build Homes

One of the biggest hurdles for owners of older properties is obtaining approval from the homeowners' association. New-build developments are often designed with vacation rentals in mind, making registration easier and quicker. Plus, modern housing complexes typically meet all safety and quality requirements from the start.

3. New Builds Meet Safety and Equipment Standards

New properties often come fully equipped with:

• Evacuation plans displayed at entrances
• Elevators in buildings with four or more floors
• Pre-installed internet and climate control systems
• Emergency contact information and first aid kits
• Fully furnished interiors with equipped kitchens and sufficient linens
  These features save you time and money when complying with the new law.

4. Higher Profitability with Lower Legal Risks

Fines for non-compliance can be steep—up to €600,000. New-build properties not only simplify compliance but also attract more guests thanks to their modern amenities, ensuring higher rental returns.

5. Avoid Issues with Homeowners' Associations

Many owners of older apartments face restrictions from their buildings' residents. By choosing a new-build home, you can bypass these issues and secure a hassle-free, more profitable investment.

Conclusion: Invest Smart and Secure Your Future

If you’re looking for a vacation rental property, a new-build home is your safest and most lucrative choice. You’ll benefit from an easier licensing process, immediate compliance with the new regulations, and an appealing property that attracts travelers.

At GestaliHome, we’re dedicated to helping you find the ideal property that meets the latest legal requirements. Contact us today to explore our exclusive selection of new-build developments!