New Spain laws could see a ‘collapse’ in UK tourists visiting – according to experts. The Spanish government has passed a new law which requires all landlords that offer property as holiday homes, or seasonal lets, to register in a new short-term rental registry system devised to keep tabs on them.
But industry experts said that Brits could decided to go elsewhere to buy holiday homes to rent out due to the punitive regulations – and tourists think twice as prices could soar.
As of the 1st of July landlords face a fine of up to €500,000 if you do not apply for this new rental code. The new law primarily targets rentals under 60 days, which Spain defines as “short-term rentals.” Anything longer than 60 days is not affected by these new restrictions.
Property experts today said thousands of short-term rentals, including Airbnb, could be pulled from the market. Experts fear the laws could push up prices by up to 20% in hotspots and limit options for holidaymakers who could be forced into hotels instead.
They also said, with “nearly half of the rental applications still stuck in bureaucratic purgatory, thousands of Brits face being locked out of the lucrative short-term market, their properties suddenly unable to earn their keep.”
A new register will require all properties used for tourism and short-term holiday rentals to have a mandatory registration code to operate legally.
A total of 199,686 applications have been received to date, the vast majority for tourist rentals, according to figures released by Spain’s Ministry of Housing. Of these, 90,046 registrations have already been approved, while 17,596 were rejected. While just over 92,000 registrations are still under review.
Sarah Kenny, Director at Build a Break, warned it will “push prices up” for Brits holidaying in Spain and “limit options” for families. She added: “We’re a travel platform that specialises in helping families plan affordable holidays – and as a family of six ourselves, we know firsthand how important the right accommodation is when travelling.
“We regularly rely on Airbnb and similar short-term rental platforms, especially when visiting destinations like Spain. These types of stays often provide the most practical and affordable setups for larger families – with multiple bedrooms, communal living spaces, and kitchen facilities that allow us to self-cater.
“Hotels rarely offer this combination without significant cost or booking multiple rooms. If Spain’s new regulations significantly reduce the number of properties to book, we’re concerned it could push prices up and limit the options for families like ours. It’s not just about price – it’s about the functionality and space that make travelling as a larger family possible and enjoyable.”
Rob Peters, Principal at Simple Fast Mortgage , said holidaying Brits could be forced into more expensive hotels. He added: “The golden age of easy Airbnb cash in Spain is over. These rules could transform Spain’s property market.
“Expect short-term rental prices to rise as supply is squeezed, pushing tourists back into hotels. Meanwhile, long-term rental stock could surge as owners pivot, softening prices for locals. For Brits, it’s adapt or exit – get registered, stay compliant and you’ll reap the rewards.”
Emma Jones, Managing Director at Whenthebanksaysno.co.uk , said it could also affect Brits who are letting out properties abroad with Airbnb. She continued: “Many British holiday let investors turned to Spain when the UK government increased the costs associated with running short-term rentals here. For many, it was a more affordable alternative and a chance to enjoy some proper sunshine.
“The loss of Airbnb in Spain, or heavy restrictions on the platform, will have a significant impact on British owners who rely on it to generate income.”
Pete Mugleston, Mortgage Advisor & Managing Director at Online Mortgage Advisor, said Brits letting out properties will look to Italy, Greece or Portugal instead of Spain.
He continued: “If you’re a Brit with a property in Spain that you let out through Airbnb, these changes will have you pulling your hair out. The Spanish authorities are doing this to combat locals being priced out of the housing market, due to the explosion in the short-term rental market in recent years.
“This will add another layer of complexity to renting out your property and will more than likely be the final straw for many, as they choose to sell rather than rent.
“The result is that Brits looking to purchase a holiday home abroad to rent out will now turn their attention to other countries, such as Italy, Greece or Portugal, where regulations aren’t as strict.”
Airbnb has reacted to the ministry’s move, accusing it of using an “indiscriminate methodology” when compiling the list, reported the Majorca Daily Bulletin. The company said: “They are at odds with Spanish and European regulations.”