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Community of owners to approve new Tourist Licences

Raymundo Larraín Nesbitt, September, 1. 2025

Marbella-based Larraín Nesbitt Abogados (LNA) has over 22 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

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Article copyrighted © 2025. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1st of September 2025

Last 3rd of April 2025, Spain’s Horizontal Property Act was amended. This is the law that rules on community of owners in Spain

In a nutshell, the amendment is that community of owners may now vote to authorise the ban of new tourist licences granted on or after the 3rd of April 2025. This was prompted because before this change, a unanimity vote was required which of course never happened because owners (landlords) who rented out would oppose a ban, leading to a stalemate. This change in law breaks the gridlock and now allows rental blanket bans in community of owners all over Spain.

In effect, this law empowers community of owners to decide on whether they allow, or not, tourism licences. This changes the rules of engagement.

This change in law has far-reaching implications, even financial ones, that significantly affect property prices and sale prospects. In plain English, it marks a new milestone in buying and selling properties in Spain for all the reasons I collate below.

Community vote

It requires a vote of 60% of the owners, who in turn represent 60% of the community. 

  • Ban: if owners decide to ban all tourist licences going forward in a community, this means that even if a property owner attains a valid Tourism Licence from Regional Tourism Authorities after the ban, he is banned from offering his property as a holiday accommodation (short-term let).
  • Approve: If owners allow new tourism licences, landlords will be free to offer their property as holiday lets just like before.

 

Principle of no retroactivity

The above begs the question of what happens to landlords who offer holiday accommodations and have already attained a tourism licence before the new law came into effect?

The short answer is nothing. 

They had already acquired a legal right to rent out their properties as tourist lets, and any community ban that is approved on holiday accommodations does not affect them as they are expressly excluded from its effects. In short, they walk away scott free.

Financial implications of this change in law: short-term rental monopolies

As stated in the article’s introduction, this change will have a huge financial impact on a property’s asking price going forward. 

This is because a unit offered as a holiday accommodation on online platforms can easily make a net 7 to 10% yield a year, depending on location. This is in sharp contrast with long-term lets, which barely offer a 4% net yield, and, to top it off, you have a very serious risk of ending up with squatters under new pro-tenant laws. As a result, landlords have swapped en masse their properties from long-term to short-term, which are far more profitable and secure from a legal standpoint (fast evictions on non-payment as not the main place of abode).

Now, with this change in law from the 3rd of April, this means that some properties are outright banned from being rented out as short-term lets in community of owners. This change impacts on the sales price. This is better understood with an example.

Take two luxury penthouses in a community of owners in Marbella. They both have the same size, orientation, and finishings. Both properties are valued at the same price, €1,000,000, as in effect they are identical, both legally and physically.

However, one owner diligently procured a Tourism Licence, and the other did not before the 3rd of April 2025.

Following the 3rd of April change, the community of owners voted a blanket ban on tourist rentals. The first owner now has a property which he can still offer as a holiday accommodation because the ban does not affect him (the principle of no retroactivity on acquired rights), whereas the second penthouse owner is banned from doing so. 

Consequently, the first owner can easily achieve a 10% yield a year on his property, whilst the second one cannot. In plain English, the properties are now legally different.

The effect this ban has is that now the first property has a revised valuation of €1,100,000, or more, to reflect the potential rental yield. Whereas the second property’s price has dropped to €900,000, or under, because he is now banned from renting out short-term (he may still rent out long-term if he wishes, but the yield as explained above is significantly lower and far riskier).

In effect, this change in law has allowed the first property owner to hold a legal ‘monopoly’ on short-term rentals within a community of owners (as no new tourist lets are allowed), which greatly appreciates his property’s value. Whereas the second property owner, out of no fault of his own, has seen his property’s value take a brutal dip, which translates into a steep price drop.

Property-hunting

Following this law, on being instructed by conveyance clients to buy property in Spain, we are now tasked by them to ensure no rental bans are in place. Which means our law firm is systematically discarding properties – which are perfectly good from a legal point of view – only because they now have a rental ban in place affecting them.

The immediate effect is that properties affected by rental bans are now harder to sell. So, besides experiencing a sharp price drop, they will also take longer to sell. Properties affected by rental bans will be the last ones to be picked by savvy investors, the bottom of the litter, pushing back sales dates by months or years.

In conclusion

The change in law of the 3rd of April 2025 is yet another example of the government’s war against tourist rentals.

As a recap, it has the following consequences:

  • Prohibition to offer properties as holiday homes in communities of owners that vote to ban them
  • Asking property prices affected by rental bans will drop sharply, by 10 to 20%
  • Asking property prices not affected by bans will appreciate sharply, by 10 to 20%
  • This law creates legal rental ‘monopolies’ in some communities of owners
  • The law changes the legal status of properties (which impacts their asking price and sale prospects)
  • Properties affected by rental bans will be shunned by buyers, taking much longer to sell
  • Properties allowed to be offered as tourist rentals will sell much faster and at a higher price
  • A two-tier approval system on tourism licences is now working. Even if you are granted a Tourism Licence, your community of owners can shut it down unless you got it before the 03-04-2025 (which is a double control). Conversely, if your community bans them outright, you cannot get a Tourism Licence, even if you meet all the legal requirements

 

This law is the latest, but not the last, chapter in the Spanish government’s ongoing war against tourist rentals. Only time will tell if these well-meaning changes prove positive or detrimental.

What is clear to me is that the immediate aftermath we are witnessing, brought about by this change in law, are that few property owners are winners and most are losers. They are collateral casualties in the war being waged against tourist rentals throughout Spain.

At LNA, our friendly team can assist you in buying (or selling) your property anywhere in Spain. We can also get you any residence visa in Spain. Give us a call!

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specialising in property conveyance and taxation all over Spain. We also assist clients with immigration & residency visas, and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

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Last Blog Entry:

Santiago de Compostela: The road to God

Raymundo Larraín Nesbitt, September, 16. 2025

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Galicia combines nature and spirituality 

16th of September 2025

I continue today with my running series on top places to buy and live in Spain. You can find older entries on this series scrolling down below. These impromptu light-hearted guides are not meant to be exhaustive; they are just there as a lighthouse to shed light on an area’s main highlights and landmarks.

Introduction

Long before the shadow of Rome, and the advent of Christianity, Galicia was a mysterious verdant land, shrouded in mist, home to the fabled Keltoi, or Celts as we know them today. It is in fact the seventh Celtic nation alongside the traditional six Celtic nations of Ireland, Scotland, Wales, Brittany, Cornwall, and the Isle of Man. The Celts inhabited fortified hills known as castros. Despite Christianity, and the latter Roman influence, the spiritual Celts left an indelible mark on the land and its people, which is still apparent to this very day, including the musicality of its language (Galician).

Celts were skilled and resourceful warriors, who adapted fusing their own pagan beliefs with Christian ones, as can be gleaned from the cross with Celtic motifs which illustrates this very article. It is said druids still roam the land, preserving forests and Celtic traditions to this day. Your best chance is to look for them during the Autumn Equinox or the Samhain, when the barriers between our realm and the next are at their weakest; just try not to wander too closely to any druidic stone circles which dot the countryside at twilight (which allegedly harness natural energy from earth and sky). You really don’t fancy being transported to the otherworldly Fade; well, at least just yet!

Santiago de Compostela is much more than a pilgrimage centre; it has become a symbol. Nestled in the lush hills of northwest Spain, this Galician gem is more than just the end of the Camino de Santiago — it’s a place where history, faith, art, and daily life converge, creating a unique rhythm that draws visitors and inhabitants alike. The scallop shell is the symbol of the Camino de Santiago, the pilgrimage to Santiago.

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Pilgrim following St. James's Way, notice the scallop shell

Camino de Santiago – St. James's Way

For over one thousand years, Christian pilgrims travelled from every corner of Christian Europe to, what was then, the far edge of the world: The Road to Santiago. It is a long and winding road, not so much a physical journey, albeit a spiritual one. The long journey tests a pilgrim’s mettle, who is rewarded with peace and insight. You will meet plenty of like-minded Christians from all walks of life, from all over the world, who will share your same beliefs and family values. Some of the friendships you’ll make will last for life. St. James's Way is not so much about the final destination; it’s about the journey itself and the people you will meet along the way. Much like life itself.

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Celtic castro at Santa Trega, A Guarda, Galicia. Devised as a large maze for defence reasons.

The Roots: History & Legend

Santiago’s story is shrouded in legend. The remains of the Apostle Saint James are said to have been carried from Jerusalem to this lush land for its final resting place. This led to the foundation of Santiago's Cathedral in 1075 in his honour. It would take over two centuries, and multiple family generations, to complete this daunting task. Over the centuries, Santiago grew from a modest pilgrimage site to the capital of Galicia, weaving together Romanesque, Gothic, Baroque, and Renaissance artistry in its streets, plazas, and sacred buildings.

Walking through the Old Town (a UNESCO World Heritage site), you’ll see evidence of Santiago’s layered history: cobblestone alleys, majestic porticos, ancient cloisters, and façades showing every architectural chapter of Spain's North-West. The Cathedral of Santiago, with its Portico de la Gloria (Portico of Glory), is the star: spiritual, artistic, and an anchor for the pilgrim’s journey, and for the local community alike.

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Young pilgrim looks up in wonder at Santiago's Cathedral

Landmarks & Must-Sees

  • The Cathedral: Not just the pilgrimage’s endpoint, but an architectural wonder. Climb its towers (or the roof, for many) for sweeping views over the city and the verdant Galician hills.
  • Praza do Obradoiro: The grand square in front of the Cathedral; where pilgrims arrive, where locals pass by, where festivals are celebrated, where tourists marvel.
  • Monastery of San Martín Pinario: One of the largest monasteries in Spain; ornate, solemn, full of history.
  • Museo do Pobo Galego: Galicia’s soul is laid bare here — its people, language, art, urban traditions, farming, music etc.
  • Parque da Alameda: For fresh air, views over the old city and the distant cathedral spires, perfect for a sunset walk with Galician skies.

 

Galicia: Cradle of artists and intellectuals

Over the centuries, Galicia has been the birthplace of several renowned men and women. 

María Mayor Fernández de Cámara y Pita (epic soldier, courageous war heroine who bravely rallied the city troops in the defence of La Coruña against foreign sea raiders when all hope was lost; she single-handedly snatched victory from the jaws of defeat, turning the tide of battle and ensuring success through sheer force of will alone), Amancio Ortega Gaona (ingenious entrepreneur, businessman, billionaire, generous philanthropist), Manuel Fraga Iribarne (statesman, lawyer, elite civil servant, university professor at the Complutense de Madrid, ambassador, minister, creator of Spain’s Tourism Industry, founder of a political party), Adolfo Domínguez Fernández (fashion designer and businessman), José Calvo Sotelo (jurist and politician, his assassination sparked the outbreak of the Spanish Civil War), Ramón Menéndez Pidal (eminent historian and philologist), Rosalía de Castro (poet and novelist), Concepción Arenal (writer, activist and defender of feminism), Emilia Pardo Bazán (countess, novelist, journalist, literary critic, poet, playwright, translator, editor and professor), Camilo José Cela (writer, Nobel Prize laureate 1989), Ramón María del Valle-Inclán (dramatist and novelist, member of the Spanish Generation of 1898), Maruja Mallo (painter and artist), Luis Tosar (actor), Ramón G. Antonio Estévez (AKA Martin Sheen, US actor), Mario Casas (actor), Fernando Rey (actor), María Casares (actress), Luz Casal (singer), Carlos Núñez (musician), Xosé Manuel Budiño (musician), Jesús Vázquez (model and tv host), Paula Vázquez (model and tv hostess), Pablo Antonio Franco Otero (lawyer, youtuber, political activist, and bodyguard), Begoña Gerpe Álvarez (youtuber, political activist, exiled and lawyer).

 

Paula-Vazquez

The always glamorous Paula Vázquez

Foreign writers on Santiago de Compostela

Edith Wharton. She wrote about her 1920s pilgrimage to Santiago de Compostela in a travel diary that was later published as part of the book Return to Compostela. Her diary details the ancient Way of St. James and her pilgrimage through Spain.

We were resolved to miss no stage of the ancient way, and from Jaca we went to Eunate, Logrono, Estella, Puenta de la Reina and Burgos, and thence, by way of Fromista, Carrion de los Condes and Sahagun, to Leon, and across the Cantabrian Mountains to Oviedo.” Making “pious pauses,” she writes in her journal, they stopped “again and again, to pick up and follow the tired foot-prints of medieval early travellers.”

Ernest Hemingway. Hemingway visited Santiago in 1923. He only referenced the city indirectly in his famous novel The Old Man and the Sea. The Camino de Santiago represents a challenging path that leads to profound insights, mirroring the complex relationship between struggle and purpose in the lives of characters like Santiago in The Old Man and the Sea. The Nobel Prize in Literature 1954 was awarded to Hemingway "for his mastery of the art of narrative, most recently demonstrated in The Old Man and the Sea, and for the influence that he has exerted on contemporary style." 

"It is good to have an end to journey toward; but it is the journey that matters in the end."

Paulo Coelho. Walked the Camino de Santiago in 1986. This pivotal experience led to his spiritual awakening and was the basis for his first book, The Pilgrimage, published in 1987. It is a guide to self-discovery and finding one's own path, laying the foundation for the philosophical themes in his later, and more famous work, The Alchemist.

"Santiago is not the end of the Camino, but the beginning."

Life, Culture & Atmosphere

Santiago de Compostela is lively but doesn’t rush you. The pace is more “meandering walk through cobblestones” than “rush hour grind.” Café terraces spill into streets; street musicians, especially Celtic bagpipers, add soundtrack to your walks; and the sound of Galician (the local language with roots in Celtic) mingles with Spanish and a smattering of other tongues.

Festivals are woven into life: Feast of Saint James on July 25th is the big one, with processions, fireworks, music, and pilgrims from all over. Local fiestas, music nights, and gastronomic fairs happen throughout the year, bringing old and young together.

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A group of three Galician musicians. One of them is playing the traditional bagpipe (gaita) 

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The Tarta de Santiago is the most typical sweet of Galician cuisine

Gastronomy

Food here has soul. Think pulpo a la gallega (octopus with paprika), empanada gallega (Galician pie), hearty stews, and cheeses. You need to try the Pimientos del Padrón (grilled spicy green peppers). If you enjoy seafood, order a Mariscada Gallega, you can thank me later. And as a dessert, you can order Filloas (sweet crepes), but I heartily recommend a slice of a Tarta de Santiago (roasted almond cake, worth bargaining your soul for). The vineyards aren’t far; Albariño from nearby Rías Baixas finds its way into many tables, and local markets brim with fresh produce. Cafés are good spots to linger, chat, watch people, sometimes read, sometimes simply enjoy. Although Santiago is landlocked, the sea is only a 40 minute drive away. Galicia is world-renowned for its fresh seafood, second to none.

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Galician-style octopus

Modernity & Everyday Life

Although Santiago is steeped in tradition, it balances it well with modernity. Good infrastructures, universities (including the University of Santiago de Compostela, one of the oldest in Spain), vibrant cultural scene, decent public transit, well-preserved but lively neighbourhoods, and a constant flow of visitors and students.

The Atlantic weather is greener than most: frequent rain, temperate summers, mild winters. The surrounding landscapes are lush; walking outside the city is often rewarded with lavish forests dating back centuries, small rural villages, rivers, brooks, and tranquil spots (locus amoenus) dot the landscape. For those who love nature, the proximity to the Atlantic and Galicia’s wild rocky coast is a big plus. Here, nature rules unleashed.

Housing tends to be far more affordable than in major Spanish cities like Madrid, Barcelona, Valencia or Malaga. Though some parts of the old town are pricier (for their views, charm, and centrality). For many, the trade-off is worth it: heritage, community feel, greenery, and pace.

What makes Santiago special

  • It still retains a sense of pilgrimage: people from all over the world arrive on foot — this gives the city a spiritual (and human) dimension that’s hard to replicate elsewhere.
  • A strong Galician identity: language (Galician), music (gaita / bagpipes), folklore, cuisine, are seamlessly integrated.
  • Arts and festivals. A city that cherishes its past while staying alive: festivals, arts, the university, students, tunos (wandering university student musicians dressed in ancient costumes, each badge on their cape marks a love interest), tourists — all blending together with locals to create a vibrant, bustling city. Clearly, the Celtic volkgeist of its forefathers remains very much alive today.
  • Unspoilt natural beauty all year round. 

 

Who might love living (or visiting) Santiago

  • Those seeking atonement, for God is merciful, or who wish to give back to our Lord through sacrifice.
  • Lovers of history, architecture, and spiritual journeys.
  • People who prefer a slower pace, quality of life, and meaningful community ties over dehumanised fast-paced city hustle. Wifi and mobiles are best left at home. Santiago is all about human connection.
  • Students or academics (the university).
  • Nature lovers who don’t want to be isolated — Santiago combines access to its lush countryside and coast with modern city amenities.
  • Foodies who appreciate fresh produce, regional, seasonal cuisine, especially seafood.
  • Writers assailed by writer’s block who shy away from the mundane. If anything, the majestic land and historic sites will overflood your senses and inspire you. Who knows? You may even pull a Pulitzer or a Nobel Prize. It sure worked for Edith Wharton and Hemingway. Santiago is not the end, it's the beginning.

 

Galicia: terra das meigas – land of witches

It is rumoured that Galicia acted as a refuge in old times, inhabited by the descendants of the social outcasts who escaped unjust persecution throughout Europe during the Middle Ages and were burned at the stake. Witches, by nature, are deceitful and manipulative creatures burning with ambition. Whilst surely this can be chalked down to nothing more than old superstitions and folklore, I have long harboured lingering doubts about the nature of an ex-Spanish Minister of Economy, born in Galicia, now hiding at the heart of the EIB. She certainly does fit the bill. Eu non creo nas meigas, mais habelas hainas.

The Future

Santiago continues to evolve and thrive. Efforts in sustainable tourism, heritage preservation, improving public services, and balancing the influx of visitors are key. Local policies are increasingly embracing green spaces, pedestrian-friendly zones, and supporting local arts, language and gastronomy. The challenge is maintaining the authenticity while welcoming growth.

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Playa de las Catedrales on a foggy day, Galicia

In conclusion

Santiago de Compostela is far more than another worldly destination in your checklist; it’s a spiritual journey. The Camino de Santiago is an inner journey to know oneself. Its winding cobbled streets echo the footsteps of pilgrims over a millennium, but also resonate with the amalgamated culture and sense of community. For those seeking a place to rest their weary soul, with roots, beauty, purpose and charm, you’ll be hard pressed to find any better. Whether you visit for a weekend, stay for a term, or settle in for a lifetime, Santiago and its people will replenish your battered soul with their magic.

Galicia, terra de meigas
Galicia, land of magic

 

The Reclusive Spanish Billionaire Behind Zara's Fast Fashion Empire : NPR

«No tengo miedo a fracasar, tengo miedo a no intentarlo.» – Amancio Ortega
I'm not afraid to fail, I'm afraid of not trying

Amancio Ortega Gaona (1936). Born in Busdongo de Arbas (Leon) to a humble working-class family (his father was a rail worker). He dropped out of school at age 14. After working for many years for other people, in 1975 he opened his first Zara store. He would go on to create INDITEX, a holding company which included several known brands such as Zara, Massimo Dutti, Zara Home, Pull and Bear, and Bershka. Today, the group has over 6,000 stores open worldwide, employing over 160,000 workers, and with an annual turnover of €40 billion. He is a generous philanthropist who has donated several times cutting-edge medical equipment to the Spanish government, among many other charity works that remain undisclosed. Amancio is the greatest Galician ever, and one of Spain’s greatest sons.

Other entries in this running series:

 

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

2.025 © Raymundo Larraín Nesbitt. All Rights Reserved.

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Last Press Entry:

The TRUTH About Spain Property Prices 2025

Hi Homes, September, 21. 2025

Hi Homes is a Marbella real estate agency founded in 2013 with a strong technological know-how. It has helped hundreds of international buyers find their dream property on the Costa del Sol — whether for permanent residence, a holiday home, or a strategic investment. They started as a humble vision and have now grown into a leading, tech-enabled boutique real estate agency with a dynamic team of property experts.

 

Hi Homes kindly interviewed me on my published Idealista article on the 8th of September 2025:  The TRUTH About Spain Property Prices 2025

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