Introduction
The year 2025 brings a series of crucial changes to real estate regulations in Spain. These changes have been introduced to enhance transparency and better regulate the market, which should benefit both tenants and landlords. In this article, we highlight the most impactful adjustments that will come into effect this year.
New registration system for short-term rentals
As of January 2, 2025, Spain will implement the "Registro Único de Arrendamientos" and the "Ventanilla Única Digital de Arrendamientos" under European Regulation (EU) 2024/1028. Short-term rental landlords must register their accommodations and obtain a unique registration number, a requirement for advertising on platforms such as Airbnb.
Digital platforms are required to verify these registrations and conduct periodic audits, ensuring transparency and legality in rental transactions. This measure aims to tackle illegal rental practices and protect both tourists and residents.
New index for rent adjustments
Another significant change concerns rent adjustments. Until the end of 2024, rent increases are capped at a maximum of 3%, regardless of inflation. Starting January 2025, the Instituto Nacional de Estadística (INE) will introduce the Índice de Referencia de Actualización de los Arrendamientos de Vivienda (IRAV), a new reference index for updating rental prices.
This index replaces the previous link to the consumer price index (CPI) and is designed to offer fairer and more stable rent adjustments. For rental contracts signed after the Housing Act came into effect on May 25, 2023, rent adjustments in January 2025 will be capped at 2.20%, based on the IRAV value from November 2024.
For contracts signed before the Housing Act, annual rent adjustments remain dependent on the original contract terms. However, the new cap of 3% still applies, meaning rent increases in 2025 are limited to a maximum of 3%, regardless of inflation.
The INE will publish the IRAV monthly, with the first publication on January 2, 2025. From February 2025, the index will be published mid-month, reflecting the value of the previous month.
Abolition of the 'Golden Visa' scheme
The Spanish government has decided to terminate the 'Golden Visa' scheme. This scheme allowed non-EU citizens to obtain a residence permit through a real estate investment of at least €500,000 in Spain. The abolition was officially published in the Boletín Oficial del Estado (BOE) on January 3, 2025, and will take effect on April 3, 2025.
During this transition period, new applications can still be submitted. Existing 'Golden Visa' holders will retain their rights and can renew their permits under the current regulations.
The abolition of the 'Golden Visa' responds to concerns about the impact of foreign investments on the Spanish real estate market, including rising property prices and market disruption. The aim is to improve housing accessibility for the local population and curb market disruption.
For potential investors and current permit holders, it is essential to closely monitor these developments and seek timely legal advice to understand the implications for their situation.
Conclusion
The changes in real estate regulations in Spain in 2025 are designed to make the market fairer and more transparent. Whether you are a landlord, tenant, or investor, staying informed about these changes and their impact on your real estate activities is crucial. The abolition of the 'Golden Visa' scheme, for example, may have significant implications for foreign investors, underscoring the importance of keeping up with the latest developments. The new registration system for short-term rentals and the introduction of the IRAV present new challenges but also opportunities for landlords and tenants. We will continue to inform you of further developments and are ready to advise you on how to best navigate these new regulations and changes to make the most of Spain's dynamic real estate market.
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