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The Directorate General for Legal Certainty and Public Faith has analysed the refusal to issue a short-term rental registration number for a property in Madrid. The Registrar denied the application because the Homeowners' Association statutes expressly prohibit tourist accommodation activities within the building (Facts II). This prohibition has been recorded in the Land Registry since September 2021, prior to the owner obtaining the tourist licence.
For property owners intending to operate tourist rentals, the existence of a prohibition in the Homeowners' Association statutes, duly recorded in the Land Registry, acts as a legal impediment to the assignment of tourist rental registration numbers (Facts II). The risk for investors is the loss of commercial exploitation capacity if the community amends its statutes before acquisition or before licences are obtained, as the registry entry provides enforceability against third parties.
The tax team reviews your specific situation.
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