More and more foreign nationals are choosing to buy property in Torrevieja and other areas along the Spanish coast with the aim of generating income through tourist rentals. Acquiring a property that already has a tourist license might seem like an ideal option, as it allows you to start generating income immediately. However, before making this decision, it is essential to check certain legal aspects to avoid future problems.

The first key point is to verify that the tourist license is actually valid. It’s not enough for the seller to claim that the property has a license; it’s necessary to check that it’s officially registered with the relevant regional authority and that it hasn’t been revoked or suspended. In the Valencian Community, for example, this registration is mandatory and public.

Another key aspect is verifying whether the license is transferable. In some cases, the license is linked to the owner and not the property, meaning it could be lost during the sale. This detail is especially important and is often overlooked by many foreign buyers.

It’s also necessary to analyze the homeowners’ association regulations. Some associations have approved restrictions or even prohibitions on tourist rentals, which could prevent the intended use of the property, even if it has a license. These types of limitations can directly affect the return on investment.

In addition, it must be verified that the property meets all technical and legal requirements, such as having a certificate of occupancy and complying with the safety, ventilation, and equipment conditions stipulated by tourism regulations. Failure to meet these requirements may result in penalties or the loss of the license.

From a tax perspective, it’s important to understand the obligations associated with holiday rentals, such as declaring income, paying taxes, and complying with local regulations. Many foreign owners are unaware of these obligations until after they’ve purchased the property.

Buying a property with a tourist license can be an excellent opportunity, but only if it’s done with a thorough legal review and a detailed analysis of all the factors involved. Seeking expert advice helps avoid risks and ensures that the investment is truly profitable and legal.

Before buying a holiday home, get advice from A&G Lawyers and ensure an investment without legal risks.