Which properties cannot be used as luxury holiday rentals?

In recent years, Marbella and the Costa del Sol have established themselves as one of Europe’s most exclusive destinations. Luxury holiday rentals have become a highly attractive option for both travellers and property owners, offering a personalised and profitable experience in high-end villas, penthouses and premium apartments.

However, not all properties can be legally used for this type of rental. Increasing regulation of the tourism sector, along with decisions made by homeowners’ associations and the courts, have introduced clear limitations that any owner must be aware of before taking this step.

In this article, we explain which properties cannot be used for luxury holiday rentals and what requirements must be met for your property in Marbella to operate as a legal and secure tourist accommodation.

Legal framework: how holiday rentals are regulated in Andalusia

In Andalusia, tourist accommodation is regulated by Decree 28/2016 on Tourist Use Properties (VFT). This decree establishes the minimum conditions a property must meet in order to be registered with the Andalusian Tourism Registry, which is an essential requirement to operate legally.

In addition, there have been recent legislative and case-law developments that directly affect holiday rentals:

• The Spanish Supreme Court (October 2024 ruling) confirmed that homeowners’ associations may prohibit the tourist use of properties within a building if approved by a qualified majority.
• The Horizontal Property Act will be amended in April 2025, requiring prior approval from the homeowners’ association for a property to be used for tourist rentals.
• At an urban-planning level, each municipality (including Marbella) may establish zonal restrictions to control the proliferation of tourist accommodation in certain areas.

Properties that CANNOT be used for luxury holiday rentals

Below are the most common cases in which a property cannot be registered as a VFT or legally rented as a luxury holiday rental in Marbella.

1. Properties in communities that prohibit tourist rentals

One of the main restrictions comes from homeowners’ associations.

• If the community statutes or a resolution approved at a general meeting (with at least three-fifths of the votes) expressly prohibit holiday rentals, owners must comply with this rule.
• Using the property for tourist purposes in these cases may result in internal sanctions and legal claims.

This is especially relevant in Marbella’s luxury developments, where peace, privacy and exclusivity often take priority over tourist profitability.

2. Properties that do not meet the minimum requirements of Andalusian regulations

Decree 28/2016 requires properties to meet specific standards, including:

• A valid occupancy licence.
• Adequate habitability and quality conditions (ventilation, suitable furnishings, water and electricity supply).
• Minimum equipment: cooling systems in summer, heating in winter, bed linen and kitchenware.
• A 24-hour contact telephone number for guest assistance.

If a property does not meet these requirements, it cannot be registered as a tourist property.

3. Properties located on land or in zones not authorised for tourist use

Urban planning regulations may prevent a property from being used for tourist purposes in certain areas.

• In zones with high tourist saturation, local councils may restrict new licences.
• Some luxury developments in Marbella have exclusive residential use, which prevents tourist exploitation.

4. Properties without a licence or registration in the Tourism Registry

To advertise a property on platforms such as Airbnb, Booking or Vrbo, it is mandatory to have a VFT registration number.

• Operating without a licence is illegal and can lead to fines of up to €18,000 in Andalusia.
• Even luxury properties must comply with this requirement, regardless of their category or exclusivity.

5. Properties in poor condition or lacking safety guarantees

Even high-value properties should not be used for tourist rentals if they have structural or safety deficiencies, such as the absence of fire extinguishers, electrical hazards or a lack of public liability insurance.

Luxury rental standards are highly demanding, and failure to meet them affects both legality and the property’s reputation.

6. Protected properties or those with restricted use

Some properties listed as protected buildings (for historical or cultural reasons) may have restrictions on their use. Before offering them as holiday rentals, it is essential to check the applicable regulations.

Practical examples in Marbella

Marbella presents different scenarios in which urban planning regulations, habitability conditions and community bylaws determine whether a property can be used for tourist purposes or not, depending on the area. Below, we show some practical examples:

• Luxury gated communities such as Sierra Blanca or Cascada de Camoján: in some cases, tourist use has been restricted to preserve privacy and exclusivity.
• Marbella Old Town: although highly sought after, some properties do not meet the habitability standards required by regulations.
• Frontline apartments in Puerto Banús: many have licences, but others cannot be registered due to restrictive community statutes.

Advice for property owners looking to rent in the luxury segment

To rent a property in the luxury segment both profitably and legally, it is essential to combine regulatory compliance with professional management that meets the expectations of this market.

• Consult your community of owners before starting any formal process.
• Check the occupancy licence and the urban planning conditions of your property.
• Register the property with the Andalusian Tourism Registry to operate legally.
• Ensure a high-quality service: in the luxury market, the guest experience is just as important as the property itself.
• Many luxury villas choose to register as high-end tourist accommodation, offering premium services such as a private chef, transfers and exclusive experiences.
• Rely on a specialised manager: working with a company like Banus Rentals ensures that your property complies with regulations and is marketed within the right segment.
• Currently, 25% of owner enquiries in Marbella are related to neighbourhood disputes over the tourist use of residential properties.

Banus Rentals: experts in luxury holiday rentals in Marbella

At Banus Rentals, we help owners maximise the profitability of their luxury properties while fully complying with current regulations and offering comprehensive management.

From international marketing to reservation management, cleaning, check-in and 24/7 guest assistance, we take care of everything so your property stands out in an increasingly competitive and regulated market.

It is not enough for a property to be luxurious in order to be used for tourist rentals: it must always comply with current regulations. For this reason, not all properties are suitable for luxury holiday rentals in Marbella. Legal, urban planning and community restrictions set the boundaries of a booming sector which, precisely because of its success, is becoming increasingly regulated.

If you are a property owner and want to place your home on the luxury tourism market, the first step is to make sure you meet all legal and community requirements. The second is to surround yourself with a professional team that ensures your property is managed profitably, securely and in line with the luxury standards Marbella demands.

Would you like to know whether your property can be used for luxury holiday rentals in Marbella? Contact Banus Rentals and our team will guide you through the entire process.