Local Accommodation vs. Short-Term Rental

The recent suspension of issuing new Local Accommodation (LA) licences for autonomous fractions, such as flats and townhouses, has generated significant debate about the alternatives available to owners and investors in the property market. The government plans to allow the decision on whether to suspend (or continue) LA activity to be made locally, based on municipal housing charters. This article explores the different scenarios and the options for short-term rentals as alternatives and complements to LA.

Current Scenario: Ban in Force
Currently, with the suspension of the issuing of new LA licences for the vast majority of properties, short-term rentals have emerged as a viable alternative to consider. This type of rental allows owners to continue to monetise their properties for short periods, albeit under different rules to those applicable to rental properties.

Future Scenario 1: Ban not lifted
If the municipality does not fulfil the conditions necessary to lift the suspension of rental activity in the future, short-term rentals will remain an essential alternative. In this context, owners who wish to maintain the profitability of their properties should consider this option while respecting the associated legal and contractual specificities.

Future Scenario 2: Lifting the Ban
In municipalities that meet the conditions to lift the suspension of LA activity, short-term letting can be a valuable complement. During off-peak tourist months, such as winter, short-term rentals can help minimise the loss of income caused by vacant properties. With the rise of teleworking and the presence of digital nomads, this market looks very promising.

Short-term Letting: Rules and Considerations
Short-term rentals require a formal rental agreement. This contract must be well structured and registered with the Tax Authority (AT) to avoid the presumption of LA activity.

There is also a presumption of LA establishment if the rental lasts less than 30 days and includes complementary services such as cleaning. This presumption can be challenged by presenting a duly registered rental agreement.

The short-term rental agreement must be substantiated. It is not permitted to leave a property on a short-term basis without a valid reason, which must be clearly justified in the contract. Valid reasons include:

Non-permanent housing.
Transient particular purposes, such as professional, educational, training or tourism reasons.

The decision on whether to use property for rental or short-term letting should be carefully considered, especially in light of the new regulations and possible municipal autonomy in decisions.

For landlords and investors, short-term rentals offer an alternative to LA under the current ban conditions and can complement LA activity in periods of low occupancy, tapping into new markets such as teleworking and digital nomads.

If you have doubts about the subject, seek specialised advice on navigating these options.