Vacation Rentals: The Complete Guide 2026

Between renting a primary residence and renting for tourism, there is a third category that raises many questions: seasonal rentals. This is common in cities with universities, hospitals, and companies that relocate employees—such as Valencia or Madrid—and in 2026, the regulations governing them have changed in several ways. In this guide, we explain what the law says, what has changed this year, and—using numbers—why seasonal rentals aren’t always more profitable than regular rentals.

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What Is a Seasonal Rental?

It is the rental of a home to meet a tenant’s temporary need, distinct from their permanent residence. The key lies not in how long it lasts, but in why it is being rented: the tenant has their primary residence elsewhere or will have one once the reason for their stay ends.

Examples

• Studies: academic stays, college courses, or exchange programs of limited duration.
• Work: temporary work assignments, projects with a set end date, or temporary company transfers.
• Medical treatment: stays necessitated by medical treatment requiring the tenant to remain away from their primary residence for a specific period.
• Relocations: any other justified reason for a temporary move, such as renovations at the primary residence or one-time family situations.

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What regulations govern seasonal rentals in Spain

Application of the Urban Leases Act

Article 3.2 of Law 29/1994 on Urban Leases (LAU) expressly includes leases of urban properties entered into on a seasonal basis, “whether for the summer or any other season.”

Leases for Non-Residential Use

Since this is for a use other than housing, it is governed first by the agreement between the parties, then by Title III of the LAU, and finally by the Civil Code (Article 4.3). Neither the mandatory five- or seven-year extension nor the limits on rent adjustments applicable to standard residential leases apply.

Importance of Demonstrating the Temporary Nature of the Tenancy

If the seasonal lease agreement does not reflect a genuine temporary reason, a judge may consider it a disguised standard residential lease. In that case, the tenant would be entitled to the statutory extensions.

We recommend attaching supporting documentation to the contract: a letter from the employer, a vehicle registration, a medical report, or a construction contract.

Regional and municipal regulations that may also apply

As of January 1, 2026, Catalonia’s Law 11/2025 subjects seasonal rentals to the same rent caps as primary residences in high-demand areas, except for those strictly intended for vacation use. In addition, it requires documenting the reason for the rental and registering the security deposit with Incasòl.

Outside of Catalonia, as of September 2026, there is no specific federal law: the bill to regulate seasonal rentals has yet to be approved by Congress.

Differences Between Seasonal, Primary, and Tourist Rentals

Purpose of the Stay

This is the criterion that determines which regime applies. The name given to the contract does not matter if the reality is different.

Duration and extensions

A regular lease has a mandatory extension of up to five years (seven if the landlord is a legal entity). A seasonal lease ends when the agreed-upon term expires.

Additional Services and Marketing

Tourist rentals typically include cleaning, linens, and guest services, and are advertised on travel platforms. If a seasonal rental includes services typical of the hospitality industry, it may be subject to VAT and classified as a tourism-related activity.

Security Deposits, Guarantees, and Licenses

Seasonal leases require a security deposit equal to two months’ rent (Article 36 of the LAU). In many autonomous communities, the security deposit must be deposited with a public agency, and it’s a good idea to check whether your region also requires this for these contracts.

You may be interested in: investing in vacation rentals.

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How long can a seasonal rental contract last?

The LAU does not set a minimum or maximum duration. The key requirement is that the duration aligns with the reason for the lease: an academic year, an eight-month project, or a three-month medical treatment.

There’s a common belief that “up to 11 months is considered seasonal.” This isn’t a legal rule. An 11-month lease without a temporary reason may be a disguised standard lease, while a 14-month lease for a justified construction project may be considered seasonal.

Our practical guideline: if the duration clearly exceeds the reason for the lease, or if contracts with the same tenant are renewed consecutively, the risk of reclassification increases significantly.

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What a seasonal rental contract must include

• Identification of the parties and the property: Complete details of the landlord and tenant, address, cadastral reference, and square footage of the dwelling.
• Specific reason and duration of the stay: The temporary reason explained in detail, along with the start and end dates. This is the most important clause in the contract.
• Rent, adjustments, security deposit, and additional guarantees: Amount, payment method, and, if applicable, how it is adjusted. A security deposit equal to two months’ rent and, if agreed upon, a guarantor or additional deposit.
• Expenses, utilities, and responsibilities: Who pays for electricity, water, gas, and internet, and whether these are included in the rent or billed separately.
• Inventory, condition of the property, and key handover: A signed inventory with dated photos of the furnishings and the condition of the property. This prevents most disputes regarding the security deposit.
• Withdrawal, breach of contract, and early termination: What happens if the tenant leaves early (e.g., a proportional penalty) and what happens if they do not move out at the end of the lease.

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Rights and Obligations of the Landlord and Tenant

Landlord

• Collect the rent and agreed-upon utility payments on time.
• To reclaim the property at the end of the term, without any mandatory extension.
• To hand over the property in a habitable condition and with the inventory of furnishings.
• Make the necessary repairs to maintain the property, except for damage caused by the tenant.
• Return the security deposit at the end of the lease, deducting only proven damages or outstanding debts.
• Report the income on your income tax return and comply with any applicable state tax obligations.

• Tenant

• Use the property as agreed and with due care.
• Pay the agreed-upon rent, expenses, and utility bills.
• Do not sublet or transfer the property without the landlord’s consent.
• Allow urgent repairs to be made.
• Return the property in the condition in which it was received, except for normal wear and tear, at the end of the lease term.

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Taxation and Registration of Seasonal Rentals

Income reporting by the owner

Rental income is taxed under the personal income tax (IRPF) as real estate capital gains, under the general tax base. If hospitality services (such as periodic cleaning, linen changes, and reception) are also provided, the activity may be classified as a business activity subject to VAT.

Treatment of Deductible Expenses and Possible Tax Reductions

Mortgage interest, property tax (IBI), homeowners’ association fees, insurance, utilities paid by the owner, property management fees, and depreciation of the property (3% annually of the construction value) and furnishings are deductible.

Two nuances we often encounter:

• The 50% reduction under Article 23.2 of the Income Tax Law does not apply. That reduction is only for rentals intended as the tenant’s permanent residence, according to the Tax Agency’s criteria.
• Repair is not the same as improvement. Replacing a broken boiler with a similar one is a repair and is deductible in the same year. Installing air conditioning where none existed is an improvement: it is depreciated over several years. Mixing the two is a common mistake on tax returns.

Single Registry for Short-Term Rentals Advertised on Platforms

The Single Rental Registry, created by Royal Decree 1312/2024, required an identification number to advertise seasonal and tourist rentals on platforms starting July 1, 2025. The Supreme Court struck it down in its May 21, 2026, ruling, finding that the State lacked the authority to create it.

The Digital One-Stop Shop for Rentals and the requirement for platforms to submit data for statistical purposes—both managed by the Ministry of Housing and Urban Agenda—remain in effect.

Why It’s Important to Review Current Regulations in Each Autonomous Community

Following the annulment of the national registry, regional regulations have gained greater weight: tourist registries, security deposit requirements, and, in Catalonia, seasonal rent caps. Before listing a property, check the regulations in your autonomous community and your local municipality.

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Advantages and Risks of Seasonal Rentals

Advantages

• Flexibility: the owner regains possession of the property at the end of each lease.
• Higher monthly rents than in standard rentals in areas with seasonal demand.
• Tenants are often backed by a company or university.
• Ability to use the property between leases.

• Risks

• Vacancy periods between tenants, which reduce actual profitability.
• More management work: tenant turnover, cleaning, utilities, furnishings, and wear and tear.
• Risk that a judge may reclassify the lease as a primary residence if the reason is not valid.
• Loss of the 50% tax deduction available for regular rental properties.
• Frequent regulatory changes at the regional and national levels.
• If the tenant does not move out at the end of the term, you must file for eviction due to expiration of the lease, which takes time.

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How to Evaluate a Property for Seasonal Rentals

Actual seasonal demand in the area

Look for proximity to hospitals, universities, business parks, or long-term projects. Check how many seasonal listings there are in the area and how long they take to rent.

Expected occupancy and seasonality

In university areas, properties are often vacant during the summer. Plan for 9 or 10 months of occupancy, not 12.

Net Profitability After Expenses and Taxes

Even with rent 35% higher, seasonal rentals yield less profit. To match the income from a standard 11-month occupancy, the rent would need to be around €1,530 per month. These figures are hypothetical and vary greatly by city, but the calculation shows why we don’t assume that seasonal rentals are more profitable.

Legal, zoning, and registration status of the property

Verify that the property has a certificate of occupancy or first-occupancy permit, that the homeowners’ association bylaws do not prohibit commercial activities, and that there are no encumbrances.

Conservative scenario and margin for contingencies

Develop a scenario with 20% lower occupancy and 10% lower rent. If the numbers don’t add up in that scenario, the venture relies too heavily on everything going smoothly.

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Frequently Asked Questions (FAQs)

How much security deposit is required for a seasonal lease?

Two months’ rent, because it is a lease for non-residential use (Article 36.1 of the LAU). Additionally, the parties may agree on additional guarantees. In many autonomous communities, the security deposit must be deposited with the corresponding public agency.

Can the tenant register as a resident?

Registration reflects actual residence, and the city council cannot deny it based on the type of lease. However, the tenant’s registration may be used as evidence that the property is their primary residence, which could weaken the seasonal classification in the event of a dispute.

Can a regular lease be converted into a seasonal one?

Not simply by changing the lease. If the same tenant continues to live there permanently, a judge will consider the actual circumstances rather than the label. Signing a seasonal lease to avoid mandatory lease extensions may be considered a circumvention of the law.

What happens if the tenant does not move out when the lease ends?

The landlord must file an eviction lawsuit based on the expiration of the lease term (Article 250.1.1 of the Civil Procedure Act). The landlord cannot change the lock or cut off utilities on their own. That is why it is important to thoroughly document the temporary nature of the tenancy from the outset.

Do price caps apply in high-demand areas?

The limits set forth in Law 12/2023, regarding the right to housing, apply to the rental of primary residences. Catalonia has extended these limits to seasonal rentals starting in 2026 through Law 11/2025. In the rest of Spain, as of September 2026, these limits do not apply, although the situation may change.

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Conclusion

Seasonal rentals can make sense, but only if the rationale is sound and the numbers hold up under a conservative scenario. Our practical advice: Before making a decision, fill out the table in this guide with your apartment’s details and compare the net result—not the monthly rent. If the difference in favor of seasonal rentals is small, it likely doesn’t justify the extra management effort or the regulatory risk, which will continue to evolve through 2026.

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