On 3 October 2024, the Spanish Supreme Court issued Ruling 4791/2024, confirming that a community of owners can prohibit tourist rentals with a 3/5 majority agreement. This decision clarifies a previously controversial legal question and has significant implications for property owners and communities seeking to regulate the growing phenomenon of short-term rentals.
Legal Background and Controversy
The ruling revolves around the interpretation of Article 17.12 of the Horizontal Property Law (Ley de Propiedad Horizontal, LPH), which grants communities of owners the ability to “limit or condition” tourist rental activity. However, the law did not explicitly use the term prohibit, leading to uncertainty regarding the extent of the community’s authority.
A long-standing debate existed on whether this provision merely allowed communities to impose conditions—such as restricting the number of rental days or increasing common fees for affected owners—or whether they also had the power to completely prohibit the activity within the building or residential complex.
Supreme Court Interpretation
The Supreme Court ruled that the spirit and purpose of Article 17.12 support an interpretation that includes the ability to prohibit tourist rentals entirely. The court reasoned that allowing a simple majority (3/5) to establish limitations without including the ability to prohibit would contradict the objective of granting communities a decisive role in regulating these rentals. Therefore, the ruling confirms that a 3/5 majority decision is sufficient not only to impose conditions but also to outright ban tourist rentals within a residential building.
This decision brings much-needed legal certainty to communities of owners that have been struggling with conflicts arising from short-term rentals, particularly in tourist-heavy regions.
Legislative Reform and Future Impact
Following this ruling, the Spanish government has taken further legislative steps to reinforce and clarify the regulation of tourist rentals at the national level. Organic Law 1/2025 on Efficiency Measures for the Public Justice Service, published in the Boletín Oficial del Estado (BOE) on 3 January 2025, introduces a crucial modification to the Horizontal Property Law.
Specifically, through its Fourth Final Provision, the new law reverses the current presumption that tourist rentals are allowed unless explicitly restricted. Instead, it establishes that any owner who wishes to engage in short-term tourist rentals must obtain prior approval from the community of owners, with a favorable vote of at least 3/5 of the total ownership.
Importantly, this new requirement will not apply retroactively. Owners who already hold valid tourist rental licenses before the law’s entry into force on 3 April 2025 will be allowed
to continue their activity under the conditions of their existing permits. However, going forward, new entrants to the short-term rental market will need community approval before legally engaging in the activity.
This legislative change represents a shift in how tourist rentals are regulated within residential communities, giving homeowners’ associations more control over the use of properties within their buildings. It is expected to have a significant impact on the real estate market, particularly in high-demand tourist areas, where conflicts between residents and short-term rental operators have been a source of legal disputes and community tensions.
Furthermore, Organic Law 1/2025 is the same legislation that will eliminate the Golden Visa program, another major regulatory change in Spain’s real estate sector.
Conclusion
The Supreme Court ruling and the subsequent legal reform mark a turning point in the regulation of tourist rentals in Spain. While communities of owners now have clear authority to prohibit such rentals by a 3/5 majority, the upcoming legislative change will further empower them by making express approval a prerequisite for any new short-term rental activity. As these new regulations come into effect, property owners and investors will need to carefully assess the evolving legal landscape to ensure compliance with community rules and national legislation.
