Court ruling: new rules for apartment buildings
The Supreme Court of Spain has resolved the debate over whether residents of apartment buildings can ban short-term rentals to tourists. In September 2025, the civil chamber upheld the legality of a homeowners’ association decision in Segovia, where a majority voted to restrict tourist rentals in a residential building. Two apartment owners tried to challenge this ban, but their arguments were rejected.
Legal interpretation: what the majority is allowed
The court clarified that the version of Article 17.12 of the Horizontal Property Law (Ley de Propiedad Horizontal) in effect in January 2019 did not prevent the introduction of a complete ban on short-term rentals, as long as the decision was supported by a qualified majority. The conflict arose after an extraordinary meeting at which residents voted against permitting tourists in the building. Dissenting owners filed a lawsuit, arguing that such a ban infringed on their rights and contradicted the law. The first court sided with them, but the appellate court overturned this decision, recognizing the legitimacy of a collective ban.
Arguments of the parties and the Supreme Court’s position
Owners who disagreed with the restriction filed a cassation appeal, arguing that the law only permits imposing limitations or setting conditions for renting, but does not allow a complete ban. The Supreme Court did not accept this interpretation. The decision notes that the term ‘restriction’ encompasses both partial and total bans, provided they are adopted by a qualified majority. The court recalled its previous rulings on similar cases, in which it expressed the same position.
Legislative changes and impact on residents
A key development was that the new version of the law, effective January 2025, explicitly established the right of homeowners’ assemblies not only to restrict, but also to completely prohibit short-term rentals. The law now clearly states that residents can decide to ban, limit, or set conditions for renting apartments to tourists. Thus, the court ruling formalized a unified approach that is now also supported at the legislative level.
Impact on the rental market and property owners’ rights
This Supreme Court decision and changes in the law have a significant impact on the short-term rental market in Spain. Now, residents can collectively decide whether to allow such activities in their buildings. For property owners wishing to rent out apartments to tourists, this means they must consider the opinion of the majority of neighbors and follow established rules. As a result, the rights and interests of all market participants have gained additional protection and clarity.
