The Valencian Community has effectively paused the issuance of new tourist rental licences (VT licences) across large parts of the region. For expat property owners on the Costa Blanca — many of whom rely on Airbnb or Booking.com income to offset costs — this is the biggest regulatory shift in years.
Here is everything you need to know, explained clearly and without jargon.
What Has Changed?
In late 2025 and into 2026, the Valencian regional government (Generalitat Valenciana) announced a moratorium on new tourist accommodation licences in high-pressure tourist areas. This follows similar moves in the Balearic Islands and Barcelona.
The legal mechanism is the Decree-Law 9/2024 on tourist housing, which empowers local municipalities to cap or freeze new licences in areas where short-term rentals are judged to be affecting housing availability for residents.
In practice, this means:
- Many town halls along the Costa Blanca have stopped processing new VT licence applications
- Even in municipalities that haven’t formally frozen applications, approval timelines have extended dramatically — from 3 months to 12+ months
- Some areas have introduced zoning restrictions that effectively ban new tourist rentals in certain neighbourhoods
Which Areas Are Affected?
The moratorium is not uniform. Each municipality decides whether to participate and to what extent.
High-impact areas (effective freeze or very long delays):
- Alicante city and surrounding zones
- Benidorm (cap on new licences reached)
- Torrevieja and the southern Costa Blanca
- Denia (awaiting municipal decision as of March 2026)
- Calpe and Altea (processing frozen pending zoning review)
Lower-impact areas (still processing, but slowly):
- Javea (Xàbia) — processing continues with stricter inspection requirements
- Moraira / Teulada — case-by-case review ongoing
- Orihuela Costa — partially affected by Orihuela municipal freeze
- Guardamar del Segura — processing with delays
Important: This situation is evolving fast. Municipal decisions are being made on a month-by-month basis. Contact us for the current status of your specific town.
What This Means If You Already Have a Licence
Your existing VT licence remains valid — there is no retrospective cancellation of issued licences.
However, you should be aware of:
- Annual renewal obligations — your licence must be renewed each year. Missing renewal deadlines during a freeze could result in losing your licence permanently, as new ones are not being issued
- Compliance inspections — regional authorities have increased inspection activity. Properties must meet all current habitability and safety requirements (fire extinguisher, first aid kit, CCTV notice, complaints book, etc.)
- Energy certificate — all tourist rental properties now require a valid energy performance certificate (EPC). Many older properties fail to meet the minimum E rating
- New platform reporting obligations — Airbnb, Vrbo, and Booking.com are now required to report your rental income to Spanish tax authorities automatically
Practical advice: Do not let your renewal lapse. If your property has been rented informally without a valid licence, now is the time to seek advice — penalties for unlicensed tourist rental can reach €300,000 under Valencian law.
What This Means If You Don’t Yet Have a Licence
If you do not currently hold a VT licence and were planning to apply, your options are limited but not zero.
Option 1: Apply Now in a Municipality That Is Still Processing
A handful of towns are still accepting and processing applications. If your property is in one of these areas, act immediately. Requirements include:
- Certificate of First Occupancy (Licencia de Primera Ocupación or Cédula de Habitabilidad) — your property must have one of these before any tourist licence application
- Floor plan drawn to scale
- Energy Performance Certificate (rated D or above preferred)
- Responsible declaration (Declaración Responsable) submitted to the town hall
- Property registration and ownership documentation
Turnaround: 6–12 months in towns currently accepting applications.
Option 2: Buy or Transfer an Existing Licenced Property
Some owners are selling their Costa Blanca properties specifically because they hold an active VT licence — making the licence a premium asset. We are seeing properties with active VT licences command a 10–15% price premium in some markets.
If you are considering purchasing a property on the Costa Blanca, prioritise viewing properties that already hold a tourist licence if holiday rental income is part of your plan.
Option 3: Pivot to Long-Term Rental
Long-term rental (contracts of 11+ months under Spain’s Ley de Arrendamientos Urbanos) does not require a tourist licence. Yields are lower — typically 4–6% gross versus 8–12% for managed holiday rental — but the situation is far simpler legally and provides stable income year-round.
For many expat owners, this is the most practical route in 2026.
Option 4: Wait and Monitor
If your property is in a municipality with a freeze, it may be temporary. Some legal challenges are underway against the moratorium. However, there is no guarantee the freeze will lift — and in some areas it may become permanent zoning policy.
How to Stay Compliant
Regardless of whether you have a licence, there are compliance steps every property owner should take:
Tax Obligations
- Model 210 (non-residents): If you are a UK or German tax resident, you must file Spanish non-resident income tax on any rental income, even if you are using a management agency. Quarterly filings apply when the property is rented; annual filings for periods when it is empty (imputed income tax applies)
- VAT (IVA): Holiday rental income where services are provided (cleaning, check-in) may be subject to 21% IVA. Long-term rentals are IVA-exempt
- Post-Brexit UK owners: You are treated as non-EU residents for tax purposes. Ensure your gestor is filing correctly — the rules changed in 2021
Property Safety Requirements (for licensed properties)
All tourist rental properties in the Valencian Community must have:
- Fire extinguisher (inspected annually)
- First aid kit
- Carbon monoxide detector (if gas appliances present)
- Emergency contact information posted visibly
- Complaints/suggestions book (Libro de Reclamaciones) available on request
- Occupancy certificate matching the property listing
- House rules posted in all registered guest languages
Platform Compliance
If you list on Airbnb, Booking.com, or Vrbo:
- Your VT licence number must appear in all listings
- Listing without a valid licence number is increasingly flagged by platforms (Airbnb has begun removing unlicenced listings in Valencia)
- Guest registration: you must submit guest ID data to the Guardia Civil within 24 hours of check-in (most management companies handle this via Hospedajes/SES)
The Broader Picture: Why This Is Happening
The licencing freeze is a response to a genuine housing affordability crisis in popular tourist areas. Alicante’s average rent rose 18% year-on-year in 2025. Local residents and political groups have pressured governments to act.
The Valencian moratorium follows similar actions in:
- Mallorca and Ibiza — new licences banned in many municipalities since 2018
- Barcelona — tourist licence quota system since 2012, full freeze in 2015
- Canary Islands — transfer-only licence system
The direction of travel is clear: in Spain’s most popular tourist areas, freely-available tourist rental licences are becoming a thing of the past.
How Costa Blanca Habitat Can Help
Navigating Spanish property regulation as a non-resident — in a language that isn’t your own — is exactly why we exist.
We help expat owners with:
- Compliance audits — we check your current licence status, renewal dates, and safety requirements
- Licence application support — if you are in a municipality still accepting applications, we manage the full process on your behalf
- Long-term rental transition — if holiday rental is no longer viable for your property, we manage the transition to long-term letting with minimal void periods
- Ongoing property management — whether holiday or long-term, we handle everything from guest check-in to maintenance callouts, in English and German
Our advisors are based on the Costa Blanca and speak to your town hall directly. We know which municipalities are still processing, which are frozen, and which are expected to open again.
Get a free, no-obligation assessment of your property’s situation. Use the form below or message us on WhatsApp.