Good news for property investors

Latest rental licence update and what it means for property investors on the Costa del Sol in 2025

The Costa del Sol remains one of Europe’s most dynamic property markets in 2025. As buyer interest continues to span international buyers and local lifestyle movers, investors are also watching the short-term rental sector closely. Recent changes to rental licence rules in Andalusia offer real, positive developments for property owners and buyers considering investment in holiday-rental homes.

Why rental licences matter now

Short-term rentals have long been a cornerstone of property investment on the Costa del Sol. The appeal is clear: high visitor numbers, strong seasonal demand and a market that combines lifestyle with solid rental returns. However, until recently, uncertainty around how licences were treated in sales and ownership transfers created hesitation for some investors. That uncertainty has now been addressed with updated guidance from the regional authorities.

Good news for investors: licences now tied to the property

The most important update for investors is that tourist rental licences in Andalusia are confirmed to be linked to the property itself, not to the individual owner. This clarification, confirmed by Spain’s Directorate-General for Legal Security and Public Faith, means licences remain valid after a property is sold, provided the property continues to meet the legal requirements for a licensed rental. In practical terms, a buyer can step into the shoes of the previous owner and continue operating the short-term rental without needing to apply for a new licence.

This change removes one of the key bureaucratic obstacles that previously slowed down transactions and introduced risk for purchasers. Investors no longer need to secure separate licence approvals upon transfer of ownership, which smooths the buying process and provides greater legal certainty.

What this means for the Costa del Sol market

This update is especially timely given the broader context of rental regulation in Spain and Andalusia. Across the country, short-term rentals are subject to increasing scrutiny and enforcement, including requirements to register properties in national and regional systems to ensure compliance.

Regional authorities and municipalities are aiming to balance community needs with the economic benefits of tourism. Marbella, for example, has not imposed blanket limits on the number of licensed tourist homes, and it continues to support a structured rental sector that operates within clear legal frameworks.

For investors this means that while compliance with local and regional rules remains essential, the core value of a property with an existing tourist licence is now more secure. These licences are recognised as part of the real estate asset rather than a personal entitlement, which strengthens investment security and makes due diligence easier for buyers.

What investors should know about compliance

Even with this positive update, investors should remain attentive to all elements of regulatory compliance. Licences must still be valid and properly registered with the Andalusian Tourism Registry (Registro de Turismo de Andalucía). Properties in multi-unit buildings may require confirmation that community statutes do not prohibit tourist use. Municipal requirements, such as local registrations or additional permits, may also apply.

In addition, Spain has introduced a national short-term rental registry system to ensure all holiday-let properties are documented and traceable. Registration in this system is mandatory for properties offered through online booking platforms.

The regulatory landscape continues to evolve. But the fact that licences transfer with property ownership is a milestone that boosts investor confidence and reduces administrative risk connected to sales. It also enhances liquidity in the market for homes that already have a valid licence.

Why this creates current opportunity

For those considering buying in 2025, the combination of sustained demand, improved legal clarity and long-term tourism dynamics creates attractive conditions. The Costa del Sol continues to see strong interest from both domestic and international buyers. With a stable regulatory framework for short-term rentals, investors can pursue assets with confidence that rental income potential will be preserved through ownership change.

This development is especially relevant for properties in high-demand areas where holiday rentals are integral to investment strategy. Buyers who secure properties with existing licences now benefit from an established income stream, and the certainty that they can continue operating the rental without a fresh licensing process.

Take the next step with confidence

If you are considering investing in property on the Costa del Sol this year, the latest rental licence updates are good news. They bring greater security to the investment process and make it easier to plan financially with confidence. With strong demand from travellers and long-term growth prospects, now is a compelling time to explore licensed rental opportunities.

Contact Your Property Concept today. Our local expertise will help you identify the right investment properties, verify the legal status of licences and guide you through every step of the purchase process. Let’s make your Costa del Sol property investment a success.