Holiday rentals on the Costa Blanca: yields and tourist licence 2026

The Costa Blanca is one of the most consolidated vacation destinations in Spain, and that makes tourist rentals an attractive way of profitability for many owners. But since August 2024, the regulations have changed substantially and, in 2026, there was also an important judicial shift at the national level. Before buying to rent, it is convenient to understand well what can be done, what license is needed and what profitability is realistic.

Profitability: What is realistic to expect

Vacation rentals usually offer a gross profitability of long-term rental, but also implies more management, more rotation and a strong seasonality: On the coast, the bulk of income is concentrated between spring and autumn. The real net profitability depends on the location (first line, proximity to the beach or golf courses), the level of occupancy, the costs of cleaning and management, and taxes. Be wary of who promises closed figures: each home and each municipality are different. The sensible thing is to calculate the occupation conservatively and subtract all expenses before deciding.

The tourist licence in the Valencian Community (Decree-Law 9/2024)

To rent a home for tourist purposes — stays of 10 days or less to the same tenant — you need to register it as Home for tourist use in the tourism register of the Valencian Community. Decree-Law 9/2024, in force since August 2024, tightened the requirements. The key points are:

Urban Compatibility Report: Before registering the home you need a Favorable municipal report to confirm that the tourist use is compatible with the planning of that City Council. Without that report you cannot register.
Validity of 5 years: Registration expires after five years and must be renewed with a new declaration and a new compatibility report.
Unique cadastral reference by home and room rental ban: It is only allowed to rent the full home.
Municipal limits: Each City Hall can restrict the maximum number of tourist homes s per building, area or sector.
24 hour contact phone and compliance with the requirements of habitability, security and accessibility. Penalties for non-compliance can reach €600,000.

The National Registry: What happened in 2026

In 2024 the State created a National Single Registry of short-term rentals (Royal Decree 1312/2024) with a mandatory registration number. However, in May 2026 the Supreme Court annulled him (Sentence 620/2026) For invading regional powers: The single national registration number ceased to be mandatory. What is still valid is the Single digital window, the obligation of the platforms (AIRBNB, BOOKING) to transmit data, and —most importantly for you— the Autonomous Tourist Registry of the Valencian Community. In practice, what an owner needs here is regional registration, not a state record.

The community of owners

If the home is in a building or residential development, check the Community Statutes and Agreements before buying. Current regulations allow the communities of owners to limit or condition the tourist rental activity by qualified majority. A restrictive community agreement can prevent you from renting even if you meet the rest of the requirements, so it is a point to verify yes or yes before the purchase.

Tourist rental taxes

Income is taxed in personal income tax if you are a tax resident in Spain, or in the IRNR If it is not: 19% on net performance for EU/EEA residents (expenses may be deducted) and 24% on the gross income for the rest (without deduction of expenses). The tourist rental No hotel-type services (cleaning during the stay, reception, meals) is exempt from VAT; If you provide those services, 10% VAT applies. It is advisable to plan taxation with a consultant before starting.

How do I help you buy well for rent?

Not all homes rent the same, nor can all get licensed. As a estate agent, I select properties with real potential for tourist rental —location, type of property, viability of license in that municipality and state of the community— and help you estimate profitability with realistic criteria before buying, not after.

Do I need a license to rent my home for seasons on the Costa Blanca?

Yes. For tourist stays of 10 days or less you must register the home in the Tourism Registry of the Valencian Community, and you need a favorable municipal report of urban compatibility beforehand.

Is the National Rental Registry number still mandatory?

No. The Supreme Court annulled in May 2026 the Single National Registry. What an owner needs in the Valencian Community is the registration in the Autonomous Tourist Registry.

How long does the tourist licence last in the Valencian Community?

Registration is valid for 5 years and must be renewed later with a new declaration and a new urban compatibility report.

Can the community of owners prevent me from renting in a tourist way?

Yes. Communities can limit or condition the tourist rental by qualified majority, so it is advisable to review the statutes and agreements before buying.

What taxes do I pay for the income of the tourist rental?

They are taxed in personal income tax if they are a resident, or in INAR if not: 19% on net for residents in the EU/EEA and 24% on the gross for the rest. Without hotel services, it is exempt from VAT.

Do you want to buy on the Costa Blanca to rent for seasons? I help you choose a viable licensed home and realistic profitability.

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Would you rather let all year round instead of to holidaymakers? Start by working out the rent you can ask for:

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Frequently asked questions about the tourist licence

Do I need a tourist licence to let my property to holidaymakers in the Valencian Community?

Yes. Any property let by the day or by the week for tourism must be registered in the Valencian Community Tourism Registry and obtain its registration number. Letting without one is a punishable offence.

What do I need in order to get it?

The essential first step is the municipal urban compatibility report from the town hall where the property is located: without it the property cannot be registered. You then file the responsible declaration with the Generalitat Valenciana, with the details of the property and of the owner, together with the rest of the required documentation.

Does the tourist licence expire?

Yes. Under Decree Law 9/2024 of the Generalitat Valenciana, registrations are valid for five years and must be renewed by filing a new responsible declaration. Properties registered before 7 August 2024 renew in August 2029.

Must the registration number appear in my adverts?

Yes. The number, in the format VT-XXXXXX-A for the province of Alicante, must appear in every advert: on booking platforms and in any other advertising, online or offline.

Can the town hall or the residents association stop me from letting to tourists?

Yes, either of them can. Several Costa Blanca municipalities have restricted the areas where they grant the urban compatibility report, and the residents association can limit or impose conditions on tourist activity in the building with the majority required by the Spanish Horizontal Property Act. It is worth checking both before buying or before spending money on a refurbishment.

Is holiday letting or long-term letting better value for me?

It depends on the property, the area and how much time you want to spend on it. Holiday letting can produce more gross income, but you must deduct the licence, cleaning, utilities, platform commissions and the low-season months. Long-term letting produces less gross income and a great deal more peace of mind. You can work out the long-term rent for your property with our calculator and compare.