Checks before you buy a property to let

Terms used

• Nota simple — The nota simple is a registry extract showing a property's owner, registered use, charges and mortgages.
• Estatutos — The estatutos are the written rules of a block's community of owners, including any limits on tourist lets.
• IBI — The IBI is the yearly local property tax paid by the owner.
• Zona tensionada — A zona tensionada is an area declared a stressed rental market, where rent caps can apply to long-term lets.

Key rules

• Community consent: A tourist let in a block of flats needs the prior consent of three-fifths of the owners, and without it the let is not allowed.
• Licence: Do not assume a tourist licence passes to you; the rule depends on the region, and in Catalonia licences generally cannot be transferred.
• City limits: Many big cities have frozen or restricted new tourist licences, so ask the town hall before buying.
• Income: Work out your own yield and occupancy after costs instead of relying on a seller's figures.

Licence transfer, city restrictions, yields and occupancy change often and vary by region, so confirm current figures with the regional tourism body, the town hall and a local lawyer.

Check that letting is allowed before you pay

Buying a property does not give you the right to let it. Settle four things first: the lets are lawful, any licence transfers, the statutes allow your plan, and the income is realistic. If you cannot confirm all four, do not sign.

The documents list below shows what to request. A local lawyer should read them before you commit, because rules differ by region and by town.

Are the current lets lawful?

Ask the seller for the regional tourist licence or registration number. If the flat is let short-term, you also need the national single registry number. Check that both match the property.

Look at the nota simple too. It shows the registered use, charges and mortgages. Then ask the town hall whether its planning rules allow tourist use in that street or zone.

Several cities have limited or frozen new tourist licences. These include Barcelona, Madrid, Valencia, Palma, Bilbao, San Sebastián, Málaga and Sevilla, plus parts of the Canary Islands and the Balearics. Details change often, so ask the town hall what applies today. If you plan a long-term let, ask whether the area is a "zona tensionada", where rent caps apply.

Does the licence transfer to you?

Do not assume it does. The answer depends on the region. In most regions the registration is tied to the property and the operator, so you must file a new declaration or a change of ownership. In Catalonia, licences generally cannot be transferred. In Madrid and Andalusia, you must notify the change.

Ask the regional tourism body and the town hall before you buy. Make your offer conditional on this if you can.

What do the community statutes say?

In a block of flats, the community's estatutos can ban or limit tourist lets. Once registered, such a rule binds every owner and the community can enforce it.

Even without a ban, a tourist let needs the consent of three-fifths of the owners. A new ban or limit also needs that majority, and it applies only going forward. A statute that bans "non-residential use" in general terms may not be enough on its own. Courts look at the exact wording, so have a lawyer read it.

Also ask for the community certificate. It shows whether the flat has unpaid community debts.

Is the income realistic?

Treat any income promise from a seller or agent as a sales pitch. Work out your own figures.

• Long-term let: gross yields are typically in the mid single digits. They are lower in prime parts of Madrid, Barcelona and the Balearics. They are often higher in secondary cities and in cheaper inland or coastal towns, such as in the Valencia region, Murcia and Andalusia. Your yield depends on the price you pay, the rent and the type of property.
• Tourist let: in popular coastal and big-city markets, annual occupancy typically runs from roughly 55 to 75 percent. It is higher in summer and lower in winter. These are private estimates, not official figures. The national statistics office publishes tourist apartment occupancy data you can compare.

Subtract your costs before judging a deal: community fees, IBI, insurance, repairs, cleaning, management and tax. A property that only works at the top of the range is a risky buy.

Before you sign

Keep these in order: confirm the licence position, read the statutes, get the community certificate, then test the income. The FAQ below answers common questions on licences, city freezes, yields and occupancy.

Documents you need

• Nota simple from the Registro de la Propiedad (the property registry), showing the owner, charges, mortgages and use

• The community of owners' statutes (estatutos), to see whether tourist lets are banned or limited

• A community certificate showing the flat has no unpaid community debts

• The regional tourist licence or registration number, and the national single registry number if you plan to let short-term

• The town hall's planning and zoning rules on tourist use

• Cédula de habitabilidad (habitability certificate), where your region requires it

• Certificado energético (energy performance certificate)

• The cadastral reference and the latest IBI (local property tax) receipt

• Up-to-date utility bills

• For a long-term let, confirmation of whether the area is a declared stressed rental market zone (zona tensionada) with rent caps

Frequently asked questions

Does a tourist-let licence pass to me when I buy the property?

Usually not automatically, because in most regions the registration is tied to the property and the operator, so you must file a new declaration or notify the change of owner. In Catalonia, licences generally cannot be transferred at all. In Madrid and Andalusia, you must notify the change, so ask the regional tourism body and the town hall before you sign.

Which cities have stopped or frozen new tourist licences?

Several cities limit or freeze new tourist licences, including Barcelona, Madrid, Valencia city, Palma, Bilbao, San Sebastián, Málaga and Sevilla's centre. Barcelona is phasing out its licences by 2028, and Palma bans new ones in flats. Details change often, so ask the town hall of the exact area.

What gross yield can I expect from a long-term let in Spain?

Gross yields on long-term lets typically fall in the mid single digits. They are lower in prime Madrid, Barcelona and Balearic areas, and higher in secondary cities and inland or coastal towns with lower prices. Check the latest figures for your city and property type before you budget.

What occupancy can a tourist let realistically reach?

Popular coastal and big-city areas typically reach annual occupancy of roughly 55 to 75 percent, higher in summer and lower in winter. Nightly rates vary by size, location and season. Treat these as estimates and compare them with the national statistics institute's tourist apartment data.