Sustainable Tourism Law

Private holiday rentals in Spanish law Avelino Blasco Esteve Universidad de las Illas Baleares I. INTRODUCTION In recent years, and especially after 2010, a huge debate has arisen around renting residential homes to tourists, either the full property or by rooms. The reform of Spanish legislation on urban leases in 2013 left this possibility without any legal coverage by excluding this type of lease from the Tenancy Act. This meant a debate arose around which legislation was applicable in this instance and, in short, whether renting out entire homes or part thereof to tourists was legally allowed or not. II. THE LEGAL SITUATION 1. The Reform of Tenancy Legislation in 2013 Spanish Law 4/2013 of 4 th June about the flexibility and promotion measures for the home rental market modified the Spanish Tenancy Act (Law 29/1994 of 24 th November, hereinafter LAU). Among other modifications, the reform excluded equipped and furnished home rentals from the LAU if they are marketed on tourism sales channels. The text indicates that the application scope of the Act excludes “the temporary transfer of the total use of a furnished and equipped home for immediate use that is marketed or advertised on tourism sales channels for profit purposes, where it is subject to a specific framework, arising from sector regulations” (art. 5.e. of the LAU). The reasoning provided by the Explanatory Memorandum of Law 4/2013 for this reform states that “in recent years, there has been a growing rise in the use of private accommodation for tourism that could provide cover for fraud and unfair competition, which act against the quality of tourist destinations; hence, the proposed reform of the Law specifically excludes them so that they may be regulated by specific sector regulations or, failing this, the seasonal lease system be applied to them, which remains unchanged”.