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I have a friend who rents out a one-bedroom apartment in Málaga’s historic center. She maintains a 90% occupancy rate and earns an average of €1,000–€1,500 per month after covering all costs.
She keeps it simple. She placed the listing on Airbnb and manages most of the service herself, only hiring specialists for special cases. Yes, that’s possible in Málaga if you buy a property with an existing license. In this article, we will review the opportunities in major Costa del Sol municipalities.
Short-term rentals remain one of the most attractive property investment strategies on the Costa del Sol.
However, regulations are changing quickly across Andalucía. Cities like Málaga, Fuengirola, y Manilva now have stricter rules for tourist rental licenses (VUTs), so buyers need to understand these rules before purchasing a property.
In this guide, I’ll explain the new legal framework, how to apply for a license, and what inversores should consider when buying a rental property on the Costa del Sol.
These insights are possible thanks to the team at Manzanares Lawyers.
Understanding Tourist Rental Licenses (VUT) in Andalusia
A Vivienda de Uso Turístico (VUT) license allows a property to be legally rented out for short-term stays on platforms such as Airbnb or Booking.com.
One of the most important legal clarifications recently introduced is that the tourist rental license is attached to the property itself and not to the owner. This means that when a licensed property is sold, the license transfers to the new owner without the need for a new application. The only requirement is to notify the Andalusian Tourism Registry of the change in ownership.
For investors, this is significant. Buying a property with a valid license allows you to start renting immediately.
However, new licenses are not always available. Regulations differ between municipalities.
For example:
- The city of Málaga has temporarily suspended new VUT licenses while urban planning rules are updated
- In Fuengirola, properties must have independent access from the street to qualify for a license
- Manilva has divided the municipality into zones where rentals may be restricted or require special authorization
These differences in regulations are why location matters greatly when planning a property-buying strategy focused on rentals on the Costa del Sol.
How to Apply for a Tourist Rental License
If the property does not already have a license, the process usually involves several steps.
First, the property must meet technical requirements such as minimum living standards, proper ventilation, safety equipment, and occupancy rules.
Then, the owner must register the property in the Andalusian Tourism Registry (RTA). This is usually done online with supporting documentation.
In many municipalities today, an additional step is required.
- Confirmation that urban planning regulations allow tourist rentals.
- In some areas, a municipal authorization from the town hall is required.
- Registration in the regional tourism registry is also required.
Another important requirement introduced in 2025 is approval from the building’s community of owners. If the property does not yet have a license, the community may need to approve tourist rentals by a three-fifths majority vote.
However, if the property already has a valid license, that approval is not required, as the license is considered an acquired legal right.
Here’s a practical tip I always share with clients:
Before reserving a property, ask your lawyer to confirm urban planning compliance and licensing eligibility.
Can You Buy a Property With a License and Start Renting Immediately?
Yes, and this is often the safest investment option.
If the property has a valid tourist license registered with the Andalusian Tourism Registry, it remains valid after the sale. The new owner simply notifies the registry of the change in ownership.
Rental activity can continue without interruption.
Many investors specifically search for licensed properties in Benalmádena, Marbella, or Mijas because it eliminates regulatory uncertainty.
From my personal experience living in Benalmádena, licensed properties tend to sell faster because buyers know the rental activity is legally secure.
Property Management, Airbnb Operation, and Apart-Hotel Alternatives
A common question from international buyers is whether they need to start a company in order to operate short-term rentals.
In most cases, a company is not necessary. Many owners simply rent their properties as individuals and declare the rental income in Spain.
However, you must comply with operational requirements, such as:
- Guest registration with police authorities
- Cleaning and maintenance standards
- Tax declarations on rental income
Due to these responsibilities, many owners choose to work with professional rental management companies. These companies can handle:
- Guest check-in and communication
- Cleaning and maintenance
- Listing management on Airbnb and other platforms
- Pricing optimization
Management fees typically range from 15% to 25% of rental income, depending on the level of service.
Another interesting option for investors is a serviced apartment or apart-hotel. These properties operate more like hotels, con professional management already in place. This model can be attractive for investors who prefer passive income without daily operational tasks.
Let’s look at the difference between the two options:
Rental ROI and What Really Drives Returns on the Costa del Sol
Apartments for sale in the Costa del Sol region can typically generate an annual net ROI of around 6–8%, but this depends heavily on how competitive your property is.
Nowadays, buyers need to think like guests. When searching on Airbnb, people filter by features such as a pool, gym, vistas al mar and modern design, as well as small details like smoke alarms.
These are no longer just extras; they directly affect your rental income. From my experience, properties with strong features and good presentation perform significantly better.
At the same time, it’s important to understand the financial side of the investment, including occupancy rates, dynamic pricing y demand trends.
SaaS Tools can help you to track how many properties are rented at a given time and at what price, giving you a real advantage. Finally, don’t forget about practical aspects such as property taxes in Spain, local regulations and proximity to infrastructure and schools, as these can also influence long-term value and rental appeal.
Should You Avoid Properties With Questionable Layouts or Illegal Modifications?
A few months ago, I visited an apartment that looked beautiful at first. The terrace had been enclosed to create an additional living space, and the owner was marketing it as a two-bedroom apartment.
However, one of the bedrooms had no window and technically counted as part of the kitchen area.
Interestingly, the property had a tourist rental license and was being rented out to guests.
Situations like this raise an important question for investors.
Even if a property is currently being rented out, it may still have urban planning irregularities.
These irregularities can cause problems later on when:
- Selling the property
- Applying for financing
- Passing legal due diligence
Banks are generally cautious of properties that do not match the official registry description.
My advice is simple:
If a property has structural changes that are not properly registered, it is usually best to avoid it, unless the seller first legalizes the modifications.
A full legal due diligence process is essential before signing a purchase contract when buying property in Spain.
Conclusión
Short-term rentals remain a strong investment in the Costa del Sol real estate market, but regulations are evolving quickly.
It is always advisable to hire an independent lawyer to protect your interests.
It is essential to understand licensing rules, community approvals, and local restrictions before purchasing a property.
At Costa Prime Realty, we guide buyers through the entire process, including identifying licensed properties, verifying legal compliance, y coordinating with lawyers, mortgage brokers, y property managers.
If you’re considering investing in a property on the Costa del Sol, our team will help you find profitable and legally secure opportunities.
I hope you found this useful. If you have any questions, feel free to leave a comment below.
Best regards from the Costa del Sol!
Izidor
PREGUNTAS FRECUENTES
No — a community of owners cannot stop tourist rentals if the property already has a valid license.
In most cases on the Costa del Sol, buying a property with a tourist rental license (VUT) is the safer, more predictable investment strategy. Several municipalities have tightened regulations, so obtaining a new license can be difficult or even impossible, depending on the location. In my opinion, it’s better to pay 5-10% more for a property with an issued license than to save on initial costs only to realize a license is not possible.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or investment advice. Regulations related to tourist rental licenses and short-term rentals in Spain may change at any time, and their interpretation can vary depending on the specific property and municipality. Readers are strongly advised to consult a qualified legal professional or local authority before making any property purchase or investment decisions.
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