As of April 3rd, 2025, Spain has introduced a major reform to the Horizontal Property Law. It’s reshaping the way short-term rental properties are regulated, especially in coastal cities like Estepona, Marbella and Málaga. While much of the attention is focused on the limitations for urban tourist rentals, a different picture is emerging in the countryside. In fact, this reform may present a unique opportunity for rural property owners and investors.
Change of Law
The updated Horizontal Property Law grants homeowner associations (communities of neighbours) the power to vote on whether to allow tourist rentals in their buildings. Key details include:
- A 3/5 majority is enough to prohibit tourist rentals in apartment blocks or shared buildings.
- The vote affects future license applications only — existing licenses remain valid.
- The rule applies to properties governed under the horizontal property regime (usually apartments or townhouses with shared spaces).
Urban rental vs. Rural rental
In Spain, there are two main types of rental licenses for tourist accommodation: VFT and VTAR. Each has different rules.
The VFT-license applies to homes in urban or coastal areas. These are usually apartments in buildings with shared spaces. This type of rental is subject to regional regulations. In addition, approval from the homeowners’ association is required. Since April 2025, VFT rentals face new limits. Communities can now vote to block new rental licenses with a 3/5 majority. As a result, owning a tourist rental in urban areas now involves more legal uncertainty and risk.
On the other hand, the VTAR-license is for detached homes in rural zones. This category includes all private houses in a rural setting that are rented out for self-catered holidays. These can be villas, fincas or cortijos, as long as they are located on rustic land. These rural rental properties are regulated by regional tourism boards, not by local homeowners’ associations. Importantly, rural rentals are not affected by the new Horizontal Property Law. No vote can block your rental activity. Therefore, a VTAR offers more freedom. You can rent legally, without interference from neighbours or building communities.
Rental properties
When we take a closer look at the rural rental properties we have for sale that we believe represent strong investment opportunities, we arrive at the following selection of homes.
- Country property with guest cottages and sea views: This fully refurbished country estate near Casares, featuring two independent guest cottages, breathtaking sea views, and luxurious outdoor living areas, offers an outstanding investment opportunity for high-end holiday rentals or retreats — perfectly located between unspoiled nature and the Costa del Sol.
- Magnificent Country Villa with Guest Annex: This magnificent country villa near Casares, with panoramic mountain and valley views, lush landscaped gardens, and a fully independent guest annex, is a rare investment opportunity — ideal for luxury rentals, retreats, or multigenerational living in one of Andalusia’s most scenic locations.
- Stunning Renovated Spanish Cortijo with Guest House: This exceptional Cortijo near Montefrío is a charming and versatile investment, combining authentic Andalusian character with modern comforts — featuring a fully independent guest house, ample entertaining spaces, and rental potential for holiday stays, retreats, or events, all set among olive groves with breathtaking views.
- Beautiful country home with Vineyard, 1 studio & 1 guest apartment: This fully renovated country estate near Ronda, with two independent guest apartments, a newly planted vineyard, and panoramic views of the Grazalema natural park, offers a unique investment opportunity — ideal for boutique rentals, wine tourism, or a luxurious family retreat in the heart of Andalusia.
- Lovely finca with stunning garden and guest studio: This beautifully renovated finca near Ronda, with a separate guest studio, underfloor heating, triple glazing, and a stunning flat garden full of fruit trees, offers an excellent investment for holiday rentals or year-round living — combining modern comfort with Andalusian charm just minutes from the city.
Rural Tourism
The 2025 reform has made one thing clear: the rules of the game have changed, and rural homes are now in a more advantageous legal position. If you’re planning to buy a property in Spain with short-term rental income in mind, a rural investment is the safest path forward. Find out more in our rental guide for country properties.
At Villas & Fincas, we specialise in countryside properties in Andalusia. Find out more about the rural rental properties in our portfolio.
David Verbaan | 25th July 2025
