The Supreme Court ruling of November 2023 determines that renting out properties for tourist use is considered an economic activity. This means a homeowners' association can prohibit holiday rentals if their statutes expressly forbid economic activities within the properties. However, Jesús García, CEO of Banus Rentals, explains that the ruling also clarifies that any such prohibition must be clear, precise, and explicit. Limitations on property rights cannot be ambiguous, and in cases of disputes or differing interpretations, only a court has the authority to resolve them.
García notes that in 2024, following the Supreme Court ruling, the Seville Court of Appeal addressed this issue, ruling against a homeowners' association that attempted to ban existing tourist licenses. The judge argued that the association's statutes did not clearly and precisely specify the prohibition of economic activities such as holiday rentals. Additionally, he noted that when the property owner acquired the property and applied for the tourist license, there was no explicit prohibition in the statutes or within the community.
The situation for owners interested in holiday rentals in Marbella, Puerto Banús, and surrounding areas has become more apparent following the Supreme Court ruling and subsequent decisions like that of the Seville Court of Appeal. Furthermore, classifying holiday rentals as an economic activity strengthens the Competition Authority's support for the right to engage in this activity on private property.
It is crucial to review the homeowners' association statutes to understand specific limitations and seek appropriate advice in case of doubt.
We invite you to watch the full video where Jesús García, CEO of Banus Rentals, provides a detailed explanation of the current legal situation regarding holiday rentals and the implications of the Supreme Court ruling of November 2023.
We hope this information is helpful to you. At Banus Rentals, we will continue to provide the latest updates and advice to ensure your holiday rental experience is successful and hassle-free. We are here to help you understand and make the most of the opportunities offered by the tourist accommodation market.