Costa Blanca towns to fine illegal tourist rentals

by Else BeekmanElse Beekman
Costa Blanca tourist rentals

In a move to tackle illegal tourist rentals, the Costa Blanca towns of Alicante, Elche, Torrevieja, and Benidorm have gained new authority to penalise illegal tourist rentals. This development follows a new agreement that grants local councils the power to enforce sanctions and collect fines for illegal holiday lets.

On January 23, 2025, at Fitur, the world’s leading tourism fair in Madrid, the Generalitat Valenciana, the Federation of Municipalities and Provinces of Valencia (FVMP), and several municipalities including Alicante, Elche, Benidorm, and Torrevieja have signed a pivotal agreement. This agreement officially grants these cities the power to impose fines and manage the legal procedures related to illegal tourist accommodations within their jurisdictions.

This measure is part of the Generalitat’s ongoing efforts to curb the spread of illegal short-term rentals. These are a threat to local housing markets and urban planning. The Valencian government has already initiated the process of de-registering around 34,000 holiday homes from its official registry.

New regulation Valencian government

Last summer, the Valencian government introduced a new decree to regulate the growing tourist housing sector. Under the law, owners of tourist properties must renew their licenses every five years. Additionally, local councils now have the power to limit the use of such properties in their areas. Furthermore, key boxes in public spaces or communal areas are banned.

Since 2015, the number of tourist properties in the region has increased by 160%. The new law aims to address the impact of this growth, ensuring it remains sustainable and controlled. It also introduces new regulations, including the requirement for owners to provide property details to the register by last December 31. Furthermore, it establishes penalties for violations, such as renting out individual rooms.

The hotel association HOSBEC has praised the decree. However, they note that the authorities have much work to be done to ensure effective implementation. This counts particularly for areas like guest identification and safety regulations. Local councils will play a key role in shaping the future of tourist housing in the region.

Local governments take the lead

From earlier this week newly empowered municipalities can enforce regulations through their local police forces. This means that the mentioned local Costa Blanca authorities can now handle complaints and apply fines for violations in the tourist rental sector. The fines authorities collect will be retained by the local councils. Herewith, offering these a new source of revenue for these cities.

Alicante’s Mayor, Luis Barcala, emphasised that the aim of this agreement is not to ban short-term rentals, but to regulate them effectively. He stated, “We want to set the foundations for a sustainable future, ensuring that illegal rentals are not tolerated.”

Strengthening sustainable tourism

The agreement allows these municipalities to work in close collaboration with the Generalitat’s tourism department to regulate tourist accommodation. The deal has a term of five years and the option for a five-year extension. It outlines clear responsibilities and obligations for the local authorities involved. The Valencian government sees this collaboration with new tools as crucial to ensuring a regulated, sustainable tourism sector. 

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