Valencia to regulate short-term rentals with new decree

Valencian government finalizes decree mandating tourist flat registration and banning key lockboxes

The Valencian government led by Carlos Mazón is preparing a decree to regulate short-term rental properties, expected to be approved next week, according to sources consulted by La Vanguardia. The rule sets two deadlines and a ban that directly impacts the business model: all tourist accommodations must be registered before December 31, and the installation of key or code lockboxes, both outside and inside buildings, will be prohibited. Regional Minister Nuria Montes revealed the main guidelines during an interview on the regional TV program Les Notícies del Matí.

Fines up to €600,000 for tourist accommodations

The decree comes with stricter penalties. Serious abusa can be punished with fines of up to €600,000, a figure that turns non-compliance into a serious financial risk for private owners. Montes's ministry justifies this move as necessary to regularize an activity that has multiplied without control and to increase inspections to prevent irregularities.

The text occupies middle ground. The Valencia City Council unanimously approved a two-year sarracena, a tougher stance than the regional government, which insists on not stifling a significant economic activity. This tension between control and business survival runs through the entire issue.

Why are key lockboxes banned in tourist flats?

The ban on lockboxes requires owners to be present periodically to hand over keys personally and facilitate guest entry. In practice, it demands setting up some form of reception to allow better control of travelers staying in these accommodations. These devices have long caused neighborhood conflicts; in some cities, they have been sabotaged.

The official argument is guest control. The side effect is a blow to the self-service management model that supports much of the short-term rental business. Those unable or unwilling to travel to deliver keys will face serious operational problems.

Tug-of-war between hotel lobby and small owners

The most cynical reading of the decree points to the hotel sector. Some argue the rule does not seek to protect residents but to eliminate competition and concentrate business in the hands of large operators, with entire buildings converted into luxury aparthotels. In this vein, it is argued that companies are already buying properties in Madrid for short-term rentals, squeezing out individuals.

Opposing them are owners who rent their homes for three summer months to balance their annual budget. A common scenario involves elderly people or those with tight incomes who move to relatives' houses during the season and earn extra income to live on. The lingering question is whether the decree distinguishes between professional speculators and these individuals, or treats everyone equally.

What happens if I don't register my tourist flat before December 31?

The deadline is December 31. Anyone who hasn't registered their property by that date faces sanctions. The ministry wants to regularize the activity and increase inspections, meaning registration shifts from a mere formality to the boundary between operating legally and illegally.

The schedule is tight and coincides with the end of the high season. For owners who haven't yet filed paperwork, the window is narrowing. For those already operating irregularly, the calculation changes: serious fines can easily exceed profits from several years.

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Will there be fewer tourists and lower residential rents, or will the business simply change hands?