Differences Seasonal vs Permanent Rent

The differences between a permanent rental and a temporary or short-term rental in Spanish law lie in several key aspects related to its purpose, regulation, taxation and rights of the parties.

Main difference: Purpose of the contract

The main difference lies in the purpose of the contract: habitual residence versus temporary use.

This directly affects the applicable regulation, the rights and obligations of the parties, and the tax treatment.

It is crucial that both owners and tenants clearly define the purpose of the rental and comply with specific regulations to avoid legal conflicts.

Other differences

The most important differences are summarized below:

Purpose of the rental

• Rental of permanent housing: It is designed to cover the tenant’s usual and permanent housing need . Its main purpose is to provide a home for the tenant.
• Applicable regulations: It is mainly regulated by the Urban Leases Law (LAU), especially Title II.
• Temporary or short-term rental: For uses other than habitual residence, such as holiday stays, work or educational reasons, or tourist rentals.
• Applicable regulations: It is regulated by article 3.2 of the LAU for temporary uses and may be subject to regional and municipal regulations, especially in the case of tourist rentals.

Duration of the contract

• Permanent lease: It has a minimum duration of 5 years (7 years if the landlord is a legal entity), unless the parties agree on another duration. The tenant is entitled to mandatory extensions during this period.
• Temporary or short-term rental: The duration is freely agreed between the parties, without established legal minimums, but it must be justified that it is not for habitual residence. In the case of tourist rentals, it is usually for days, weeks or months.

Taxation

• Permanent rental: Owners can benefit from a 60% reduction on net income in personal income tax if the property is intended for the tenant’s main residence.
• Temporary or tourist rental: The 60% reduction does not apply. In addition, if it is rented as a tourist home, the owner must comply with specific obligations, and paying this tax, with exceptions.

Regional and municipal regulation

• Permanent rental: Its regulation depends on the LAU at the state level, with less interference from local regulations.
• Temporary or tourist rental: It is strongly regulated by regional and local regulations. In many autonomous communities, such as Catalonia, the Balearic Islands or Andalusia, it is mandatory to register in a register of tourist housing, and there may be restrictions in saturated or tourist areas. And, recently (January 2025), there is the obligation to register at the Central Government in the “Unrique Short-Term Registry” in case the rent is offered in Digital Online Platforms (AirBNB).

Obligations of the owner

• Permanent rental: The owner must guarantee that the property is suitable for regular use, comply with the notice periods for the termination of the contract and allow extensions if applicable.
• Temporary or tourist rental: It may be obliged to offer additional services, such as cleaning or maintenance, and comply with specific requirements (e.g. tourist licenses, mandatory insurance or quality standards).

Eviction and termination of the contract

• Permanent rental: The eviction is subject to the procedures provided for in the LAU and can be extended due to the legal guarantees that protect the tenant.
• Temporary or tourist rental: As it is not for habitual residence, the parties have greater flexibility to agree on termination conditions, and legal processes are generally faster.

Rights of the Tenant

• Permanent Rental: The tenant has protected rights, such as mandatory extension, subrogation in the event of death, or certain protections against eviction.
• Temporary or tourist rental: These rights are not recognized, since the contract is designed for temporary use.

Use of the property

• Permanent rental: The tenant can make exclusive use of the property as their main residence. Subletting is not permitted without the landlord’s consent.
• Temporary or tourist rental: The use may include additional services, and subletting may be allowed depending on the nature of the contract.