Tourist rental in Alicante: licences, regulations and profitability

Tourist rental on the Costa Blanca is one of the most profitable investments in the Spanish property market — if done right. But between the pretty photo of your terrace on Airbnb and actual income there is a path through licences, taxes, management and regulation. This article walks that path without shortcuts.

What is a tourist-use dwelling (VUT)?

In the Valencian Community, a vivienda de uso turístico (VUT) is a complete dwelling let for a fee, in conditions of immediate availability, for tourist purposes. Current regulation states that the rental to the same tenant cannot exceed 10 consecutive days. If the contract is longer, it is no longer tourist letting but seasonal, and falls under the Urban Tenancies Act.

Each VUT must be linked to a unique and individualised cadastral reference. If your property does not have its own reference (common in old buildings with informal subdivisions), you will need to process a cadastral alteration before registering it.

How to obtain a VUT licence

The process is carried out through a declaración responsable (responsible declaration) filed with the Generalitat Valenciana. It is not a licence you apply for and wait — it is a declaration you submit assuming you meet the requirements, and the authority may verify afterwards.

Main requirements

• Certificate of habitability or first-occupation licence in force.
• Unique and individualised cadastral reference for the property.
• Civil liability insurance covering damage to guests and third parties.
• Minimum furnishing and equipment: the dwelling must be fully furnished and equipped for immediate use (kitchen, bathroom, bedroom, bed linen and kitchenware).
• Identification plaque on the outside of the property with the registration number.
• Complaint forms available to guests.
• Guest data reporting to the State Security Forces via the SES system within 24 hours of arrival.

Registration is valid for 5 years

Under the latest regulatory changes, VUT registrations are valid for 5 years from the date the responsible declaration is filed. On expiry, the registration must be renewed meeting the requirements in force at that time.

2025 change: mandatory community approval

From 3 April 2025, the reformed Horizontal Property Act requires any owner wishing to use their property for tourist letting to obtain prior express authorisation from the owners' community, with a favourable vote from at least three fifths (3/5) of the building's owners. This means the community can block new VUTs with an extended simple majority.

For those who already held a licence before this date, the regulation is not retroactive — but communities can activate restrictions for new registrations.

Moratorium in Alicante city

Alicante City Council has activated a two-year moratorium on granting new tourist licences for flats and apartment blocks. This does not affect already-granted licences, but temporarily freezes new registrations. If your investment targets Alicante city, check the moratorium status before buying a property with tourist intent.

In other municipalities across the province (Benidorm, Calpe, Jávea, Torrevieja, etc.), registration remains open, though each council may have its own supplementary regulations.

Mass purge of 2025

The Generalitat Valenciana deregistered over 18 000 tourist dwellings during 2025, mainly for lacking essential data: the holder's tax ID and a unique cadastral reference. If you bought a property that had a VUT licence and it has been deregistered, you will need to file a new registration meeting all current requirements.

How much do you really earn?

Marketing figures promise a lot. Reality is more nuanced:

Income by zone

• Alicante city: a well-positioned 1-bedroom apartment generates around €25 000 annually with average occupancy of 85-89 %. Rates range from €60-90 per night in low season to €100-150 in peak.
• Benidorm: average income of €28 000-31 000 annually for a standard apartment, with 65-70 % annual occupancy and an average daily rate (ADR) of around €120.
• Calpe / Jávea / Altea: income of €18 000-25 000 annually for a 2-bedroom apartment. Peak season is shorter but rates are higher (€120-200 per night).
• Torrevieja / Guardamar: income of €12 000-18 000 annually. Lower nightly rates (€50-80), but good occupancy thanks to stable international demand.

Operating costs

Gross income is not profit. From turnover you must deduct:

• Cleaning between guests: €40-80 per turnover (the most frequent expense).
• Utilities: electricity, water, gas, internet, streaming — €150 to €250 monthly.
• Linen and kitchenware: periodic replacement, around €300-600 annually.
• Platform commissions: Airbnb charges 3 % to the host (plus 14-16 % paid by the guest). Booking charges a 15 % direct commission.
• Professional management: if you delegate to a company, 15 % to 25 % of turnover, depending on services included (check-in, cleaning, maintenance, guest support).
• IBI, community fees, insurance: the same costs as any property (see previous article on yield).
• Taxes: IRPF for residents on net profit; IRNR for non-residents (19 % EU, 24 % non-EU) on gross income. Additionally, the Valencian Community tourist tax — currently being processed — could add €0.50 to €2 per night per guest.

Real net profitability

With all expenses deducted, the net yield of a well-managed tourist rental on the Costa Blanca sits between 4 % and 7 % on property value. It is higher than long-term letting (3-5 % net), but demands significantly more time, management and regulatory risk.

Management: self or outsourced?

Self-management

You maximise profit but invest time. You need to: handle messages and bookings, coordinate cleaning, manage check-in/check-out (in person or with a smart lock), resolve issues, keep photos and profile updated, and manage reviews. If you live nearby and have 1-2 properties, it is viable. With more than 3 or if you live far away, it becomes a second job.

Professional management

A management company charges 15 % to 25 % of turnover but handles everything: from rate optimisation to guest support at 3 am. For investors who do not live locally, it is practically essential.

Frequently asked questions

Can I do tourist rental of a room within my home?

No. Valencian regulation requires the VUT to be a complete dwelling. Room-by-room letting for tourist purposes is not covered under the VUT framework. There is a separate tourist accommodation category (rooms in private homes) with its own requirements, but it is much more restrictive.

What happens if I rent without a licence?

It is an administrative offence that can carry fines of €10 000 to €100 000, depending on severity and repetition. Furthermore, platforms like Airbnb and Booking increasingly require the registration number to publish listings in the Valencian Community.

How long does the responsible declaration process take?

The filing itself is immediate — once you submit the responsible declaration, you can start operating. But prior preparation (obtaining habitability certificate, individualised cadastral reference, insurance, equipment) can take 2 to 8 weeks depending on the property's situation.

Can the owners' community ban tourist rental?

Since April 2025, yes — with a 3/5 vote of owners. If the community votes against, you cannot register a new VUT in that building. Already-existing licences are not retroactively affected, but the community can impose additional restrictions (entry times, use of communal areas, etc.).

Is it worth investing in tourist rental now?

It depends on the location and your profile. Areas with established demand (Benidorm, Calpe, Jávea, Alicante beach) remain profitable, but regulation is tightening and competition is increasing. If you buy in an area without a moratorium, obtain the licence and manage well, profitability exceeds traditional letting. But if you expect effortless passive income, tourist rental is not the right investment.

If you are considering investing in tourist rental on the Costa Blanca, explore our available properties or contact us for a personalised consultation.