Vacation Rentals on the Spanish Coast: Profitability, Regulations, and Challenges in 2025

Vacation rentals in Spain continue to be one of the driving forces of the real estate sector, especially along the coastline. In 2025, coastal properties are reaching record levels of profitability, but they also face new regulatory and social challenges.

Record profitability on the Spanish coast

Tourist homes in destinations such as the Costa del Sol, the Balearic Islands, or the Canary Islands are currently generating average returns of around 7%, with some premium areas reaching 10–13%.
This high profitability makes vacation rentals one of the most attractive options for both national and international investors.

The impact of new regulations

Starting July 1, 2025, all vacation rentals in Spain must be registered in the National Vacation Rental Registry.
Major platforms such as Airbnb, Booking, and local portals will be required to remove listings that do not display an official registration number.

Social and regulatory challenges

• Housing shortages in areas with high tourist pressure.
• Increased tax and legal control for property owners.
• Growing demand for professionalization and transparency in vacation rental management.

FAQs about coastal vacation rentals in Spain

What kind of profitability can I expect from a coastal vacation rental?
On average, between 7% and 10%, depending on the location and management strategy.

Is registration mandatory in 2025?
Yes. Starting in July 2025, registration will be a legal requirement nationwide.

Which regions have the highest number of vacation rentals?
Andalusia, the Valencian Community, Catalonia, the Balearic Islands, and the Canary Islands lead the rankings.

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