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New Reform of the Horizontal Property Law: Community Control Over Tourist Rentals

On January 2, 2025, the Organic Law 1/2025, aimed at enhancing the efficiency of public justice services, introduced significant amendments to the Horizontal Property Law (Law 49/1960, of July 21). These reforms, effective from April 3, 2025, aim to provide greater community control over tourist rental activities in residential buildings.

Key Changes: Balancing Individual and Community Rights

One of the most notable changes is the addition of paragraph 3 to Article 7, which stipulates that any property owner intending to use their residence for tourist rental activities must first obtain explicit approval from the homeowners’ association. This amendment introduces stricter rules to ensure that such activities are compatible with community living.

Additionally, Article 17, paragraph 12, has been revised. Decisions to approve, limit, condition, or prohibit tourist rental activities now require the favorable vote of three-fifths of the property owners, who must also represent three-fifths of the ownership shares. This qualified majority is also required to establish special expense quotas or increases in common expenses related to properties used for these activities, provided that such increases do not exceed 20%.

Protection for Existing Activities

For property owners already engaged in tourist rental activities before the law takes effect, an additional provision has been introduced. This ensures they can continue operating under the conditions and timeframes established by the sector-specific tourism regulations in force when the activity began.

Impact on Residential Communities

This reform arises in response to growing concerns about the impact of tourist rentals on residents’ quality of life and property maintenance. By granting homeowners’ associations greater control over these activities, the law seeks to balance individual rights with collective interests.

However, the new regulation also presents challenges, particularly in communities where reaching consensus may be difficult. Moreover, courts are expected to play a crucial role in interpreting and applying these provisions.

A Step Towards Community Harmony

With these amendments, Spain aligns itself with trends in other European countries that have implemented similar measures to regulate tourist rentals. The reform represents an effort to protect the rights of property owners wishing to engage in this activity while preserving the peace of residential communities.

As these changes are implemented, it will be essential to monitor how communities adapt and what impact they have on community living and the tourist rental market.

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