Holiday let or mid-term rental on the Costa del Sol: the differences and which suits you

As autumn arrives, many Costa del Sol owners ask the same question: should I keep my home as a holiday let, or switch to a mid-term rental (what Spanish law calls alquiler de temporada) for the winter? They are two different things, with different laws, contracts and obligations, and 2026 has brought some changes worth knowing about.

Here's a plain-English guide to help you choose. It's general information, so always check your own situation with a lawyer or adviser.

What a holiday let is (VFT)

In Andalusia a holiday let is a vivienda con fines turísticos (VFT), governed by the regional Decree 28/2016. It's short-term letting to tourists, by the night or the week, through Airbnb, Booking or your own website.

The essentials:

• The home must be registered on the Andalusian Tourism Register, and that VFT number has to appear on every listing.
• The same guest can't book it for more than two consecutive months; beyond that it's no longer a tourist let.
• It must meet equipment requirements (first-occupation licence, air conditioning, first-aid kit, tourist information and so on).
• Every guest is registered on SES Hospedajes, run by Spain's Ministry of the Interior.
• In an apartment building, since April 2025 the community of owners must expressly approve (by a three-fifths majority) any new tourist let.

We go through it step by step in our guide to the tourist rental licence in Andalusia.

What a mid-term rental is

A mid-term rental is a contract under Spain's Urban Leases Act (LAU): a lease for a use other than a permanent home. It suits someone who needs to live on the Costa del Sol for a while for a specific reason: work, study, medical treatment, building work at home, or spending the winter here.

The essentials:

• No tourist licence or VFT number is needed.
• Since 8 October 2026 (Royal Decree-law 29/2026) it must last more than 31 days and, as a general rule, no more than 12 months, and the contract has to state a real, provable reason why the tenant is away from their main home (work, study, medical treatment…). Without that reason, or if more than two contracts are chained with the same tenant, it is treated as a long-term residential tenancy from the first one.
• The legal deposit is two months' rent (one month for a standard residential lease).
• If the tenant actually makes it their permanent home, a court can treat it as a residential lease, with mandatory extensions. That's why the reason must be genuine and documented.

At a glance

	Holiday let (VFT)	Mid-term rental
Law	Andalusian Decree 28/2016	Urban Leases Act (LAU)
Length	Nights or weeks (max. 2 consecutive months per guest)	More than 31 days, generally up to 12 months
Licence	VFT registration required	Not needed
Number on listings	Yes, the VFT number	No
Guest records	SES Hospedajes	Tenancy agreement
Deposit	No legal deposit	Two months' rent
Community of owners	Must approve it (since April 2025)	No approval needed
Management	Intensive: check-ins, cleaning, messages	Lighter, few changeovers

What changed in 2026

Four things stand out this year:

1. The national register is gone. In May 2026 Spain's Supreme Court annulled the national single register for short-term rentals (judgment 620/2026). It covered both tourist and mid-term lets. In Andalusia, the number required on a holiday-let listing is the VFT number.
2. New rules for mid-term lets. Royal Decree-law 26/2026 came into force on 1 October, but Congress refused to ratify it on 2 October. The Government then approved an almost identical one, Royal Decree-law 29/2026 of 6 October (Official State Gazette, 7 October), in force since 8 October 2026: a mid-term contract now needs a real, provable reason, must last more than 31 days and, generally, no more than 12 months. Contracts signed before 8 October keep the old rules until they end, but can't be renewed under them. Bear in mind that a royal decree-law must be ratified within 30 days; with Parliament dissolved, the vote falls to the Standing Committee of Congress. If it isn't ratified, it lapses. We'll update this article with the outcome.
3. Communities have more say over tourist lets, with prior approval now needed for new ones.
4. VAT on holiday lets. The same Royal Decree-law 29/2026 provides that, from 1 December 2026, letting furnished homes for stays of up to 30 nights (other than the owner's main home) will no longer be VAT-exempt and will be taxed at 10%. Mid-term lets of more than 31 days are not affected. We explain it in 10% VAT on holiday lets in Spain: what changes for owners.

Which one suits you?

It depends on your home, the area and what you want:

• Holiday let: suits homes near the beach or town centre, with a VFT licence and strong summer demand. It takes more management, but in high season it tends to make the most of every week.
• Mid-term rental: suits the winter months, homes without a licence, or buildings where the community doesn't allow tourist lets. Less turnover, less wear and less work.
• Both: many owners let to holidaymakers in spring and summer and by the month in winter. It's a common approach, but each contract must follow its own rules, and the calendar has to be carefully coordinated so bookings don't overlap.

Neither qualifies for the Spanish income tax relief that applies to long-term residential lets, and in both cases the income must be declared. If you live outside Spain, read our guide to holiday rental tax for non-resident owners too.

How ERA helps

We look at your home and its area and tell you, with data, which option works best at each time of year. If you go for holiday letting, we handle everything: licence, listing, pricing, guests, cleaning and maintenance, with every booking and expense visible in your owner portal. See how we work in areas such as Torremolinos or in our holiday rental management in Marbella.

Own a home on the Costa del Sol?

We'll put together a free study: what your home could earn, which type of letting suits it best and how we'd manage it. Request your free study here.