Key Changes to the Horizontal Property Law (LPH)
Starting in April 2025, a significant reform to the Horizontal Property Law (LPH) will take effect, introducing a crucial requirement for property owners: obtaining prior approval from the community of neighbours before using a home for tourist rental purposes.
Legislative Update: Modifications to the LPH
The First Final Provision of Organic Law 1/2025, dated January 2, introduces section 3 to article 7 of the Horizontal Property Law.
The updated section states:
“Any owner wishing to engage in the activity outlined in article 5(e) of Law 29/1994, of November 24, on Urban Leases, as regulated by tourism sector laws, must first receive explicit approval from the community of owners, as specified in section 12 of article 17 of this Law.”
Community Approval Requirement
To legally operate a tourist rental property, the law now requires a 3/5 majority vote from property owners in a horizontal property community.
This new regulation affects any individual or corporate owner of a property within a horizontally owned building. Before listing a property for short-term rental, they must gain approval from their community of owners.
What Qualifies as Tourist Accommodation Under the New Law?
According to article 7.3 of the LPH, tourist accommodation follows the definition outlined in article 5(e) of the Urban Leasing Law, as amended by Royal Decree-Law 7/2019, of March 1. This definition covers:
- The temporary rental of an entire furnished and equipped dwelling
- Listings promoted on tourist rental platforms or other marketing channels
- Rentals conducted for profit, subject to tourism sector regulations
Exemptions and Community Restrictions
Not all short-term rental activities fall under these new regulations. For example:
- Room rentals within an occupied property may not require approval, unless explicitly prohibited by community statutes.
- Other similar accommodations not fitting the legal definition of tourist rentals could be exempt unless restricted in community agreements.
How the New Law Affects Existing Community Rules
- Communities without explicit statutes banning tourist rentals must now vote to approve such activity.
- The Supreme Court (rulings 90 and 95/2024) has affirmed that communities can prohibit commercial or economic activities, including tourist rentals, if it serves the general interest of the residents.
- If a community prohibits all commercial activities, tourist rentals are automatically banned (Supreme Court rulings, November 27 & 29, 2023).
Enforcement and Legal Actions
If an owner operates a tourist rental without community approval, the community president—either on their own initiative or at the request of a resident—can demand an immediate cessation of the activity. Failure to comply may result in legal action under article 7.3 of the LPH.
Conclusion
This 2025 reform to the Horizontal Property Law places greater control in the hands of residential communities, restricting the expansion of tourist rentals in multi-owner buildings. Property owners must now seek approval before engaging in short-term rental activities, ensuring alignment with the interests of their community.
For more details on compliance and legal implications, consult [email protected] .