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The Reform of the Horizontal Property Law by Organic Law 1/2025: A New Framework for Tourist Rentals

The rise of tourist rentals has sparked growing debate within community of owners due to its impact on neighborhood coexistence and the availability of residential housing. In response to these concerns, Organic Law 1/2025, of January 2nd, has introduced substantial amendments to the Horizontal Property Law (LPH), granting community of owners greater control over the use of privately owned residences within shared buildings for tourist purposes.

 

Key amendments introduced by Organic Law 1/2025

1. Prior authorization from the community of owners

Starting April 3, 2025, any property owner wishing to use their property for tourist rental must obtain the express authorization of the community of owners. This authorization will require the favorable vote of three-fifths of the property owners, representing likewise three-fifths of the participation quotas. This measure seeks to balance individual interests with the collective well-being of the community.

2. Powers of the president of the community

The president of the community of owners will be empowered to demand the immediate cessation of tourist rental activity if it does not have prior community authorization. This provision grants the community’s representative bodies effective tools to act promptly in the face of violations that may disturb communal life.

3. Possibility of increasing common expense contributions

The community of owners may impose an increase of up to 20% on the common expense fees for those owners who use their properties for tourist rentals. This surcharge aims to compensate for the greater use of shared facilities and building services such as elevators, cleaning, and security.

4. General prohibition of tourist use

The reform establishes that, in principle, tourist use of dwellings within horizontal property regimes is prohibited, unless the community of owners agrees otherwise. This measure seeks to safeguard the residential nature of buildings and prevent the transformation of residential zones into exclusively tourist areas.

5. Transitional regime for pre-existing activities

Owners who were already engaged in tourist rental activities before the entry into force of the law may continue such activity without needing new authorization, provided they comply with the current sectoral tourism regulations. However, if the dwelling loses its license due to a change in ownership or other reasons, authorization from the community of owners will be required to resume the activity.

 

Implications for property owners and community of owners

For property owners:

  • Authorization request: They must submit a request to the community of owners and obtain the required authorization before initiating tourist rental activity.

  • Regulatory compliance: They must ensure compliance with applicable sectoral tourism regulations, in addition to the provisions set by the community.

  • Financial responsibility: They may be subject to increased common expense contributions and penalties in the event of non-compliance.

For community of owners:

  • Evaluation of requests: They must assess tourist rental authorization requests, considering the impact on community life and shared services.

  • Decision-making: They may approve, limit, condition, or prohibit tourist rentals through resolutions adopted by the qualified majority established by law.

  • Corrective actions: They have the authority to demand the cessation of unauthorized activities and to initiate legal action if necessary.

 

Conclusion

The reform introduced by Organic Law 1/2025 to the Horizontal Property Law marks an important step toward more balanced regulation, adapted to the current realities of tourist rentals. By granting community of owners greater control over the use of residential properties, the law aims to protect neighborhood harmony and uphold the residential function of buildings.

It is essential that both property owners and community of owners are well-informed and prepared to implement these new provisions effectively

 

Article by the Lawyer:

Emely Jelic

https://advokatemelyjelic.com/

Marbella vs. Benahavis: Where is the Luxury Market headed in 2024?

The luxury real estate markets of Marbella and Benahavís continue their dynamic evolution into 2024, showing nota-ble shifts in pricing and buyer behavior. Understanding these market movements is essential for both buyers and sellers in today’s high-end landscape.

 

1. Marbella: Broad Growth Across Luxury Price Brackets. Marbella’s market has seen strong transactional activity across all luxury segments in 2024, in some cases exceed-ing 2022 levels. Properties from €1.5 million to €4 million remain most active, showing consistent appeal. Notably, sales above €4 million are at or near their highest volumes, with the "More than 4M€" segment showing significant growth. This reflects increasing confidence among ultra-luxury buyers. Prices are also rising robustly, particularly in the €4 million-plus range, surpassing €8,000/m2 by 2024.

2. Benahavís: Strength at the Top, Moderation Below. Benahavís presents a contrasting picture. Transactions above €4 million have increased compared to previous years, with top-tier homes attracting strong interest. The growing yellow bar confirms this "More than 4M€" activity. However, activity below €4 million has declined from its 2023 peak, especially for properties between €1.5 million and €4 million. The drop in lower-tier transactions may also signal reduced inventory or a mismatch between sell-er expectations and buyer budgets in that segment.


"Marbella attracts robust luxury demand with strong price appreciation while Benahavís, although strong at top, shows moderated activity in mid-luxury price."



3. Divergent Price Evolution. Price trends diverge be-tween the two areas. Marbella’s €4 million-plus segment shows accelerated price growth, driven by demand and limited supply, with a strong upward curve into 2024. In contrast, Benahavís prices for "More than 4M€" properties are more stable in 2024 after a 2023 peak, and €1.5 million to €4 million prices have softened slightly from their 2023 peak. These patterns highlight the need for precise pricing strategies based on property type, location, and buyer trends.

In summary, Marbella continues to attract robust top-tier luxury demand with strong price appreciation. Benahavís, while performing strongly at the very top, shows moderat-ed activity in mid-luxury price points. Accurate market knowledge and strategic positioning are thus vital for navi-gating these dynamic markets.



Article by:

Alfonso Lacruz

5 Powerful reasons to Invest in Marbella & Benahavís this year.

I have been thinking why investors and families should consider buying real estate in Marbella and Benahavis and, after reviewing the latest data-sorne of which is included in the charts attached to this article-these are, in my view, the flve most compelling reasons why purchasing property in this area is a smart move in 2025 :

 

1. Strong Capital Appreciation. Property prices in Marbel­la and Benahavis have shown consistent growth over the last two decades. Since 2003, average prices per square meter have more than doubled. Even after the 2008 crisis, the market rebounded strongly, with recent years outper­forming the historical 4.5% annual growth line. In 2024, prices hit record highs, conflrming long-term value and reliability for investors .


2. Competitive Mortgage Rates. Spain currently offers sorne of the most competitive mortgage rates in Europe. Average rates for 30-year mortgages are just above around 3% for locals and just under 4% for international buyers which make them attractively low compared to countries like the US, UK, or Poland, where rates can ex­ceed 5-7%.


"lnvesting in Marbella and Benahavis in 2025 means securing growth, lifestyle, stability, and long-term pro­perty value."

3. Cheaper Prices Than lnternational Luxury Competi­tion. While Marbella and Benahavis are renowned for its luxury lifestyle, its property prices remain signiflcantly low­er than those in other international luxury destinations as it can be seen on Chart 1. For example, Monte Cario, Paris, and London all command much higher prices per square meter-often double or even triple those in Marbella- and, even, in the case of Monte Cario reaching the 50.000 €/m2 mark. This means buyers get more value for their invest­ment without compromising on quality or prestige.

4. Quality of Life, Safety, and Climate. Marbella and Benahavis offer an exceptional quality of life, with over 320 days of sunshine per year, beautiful beaches, world­class golf courses, and renowned gastronomy. The region is also known for its safety and welcoming international community, making it ideal for families, retirees, and re­mote workers alike.

5. Strategic Location, Connectivity, and lnfrastructure. Located just 40 minutes from Malaga lnternational Airport, Marbella and Benahavis are exceptionally well-connected to the rest of Europe. The region boasts excellent healthcare, international schools, and modern infrastruc­ture, ensuring convenience and comfort for residents and visitors.





Article by:

Alfonso Lacruz

Key reasons why working with a real estate agency on an exclusive basis is the best choice

Here are some key reasons why working with a real estate agency on an exclusive basis is the best choice:

Dedicated Marketing Strategy

Your property receives a customized, high-quality market-ing plan, including professional photography, virtual tours, and targeted advertising.

Higher Selling Price

Exclusive listings often achieve better prices because the agency focuses on maximizing your property's value ra-ther than rushing for a quick sale.

Stronger Negotiation Power

With one agency handling all inquiries and negotiations, you avoid multiple agents undercutting each other, which can lead to lower offers.

Better Buyer Qualification

The agency carefully screens potential buyers, ensuring that only serious and nancially qualied individuals view your property.

Personalized Service & Commitment

An exclusive agent is fully dedicated to selling your home, offering personalized attention, regular updates, and strategic advice.

Faster & More Efficient Sale

A clear, streamlined process avoids confusion and duplication, leading to a quicker and smoother transaction.

Condentiality & Security

Working with a single trusted agency minimizes unneces-sary exposure, reducing security risks and protecting your privacy.

Choosing an exclusive real estate agency means working with professionals who are fully committed to achieving the best outcome for you!

2024 Real Estate review: Marbella’s strength vs. Benahavís’s slowdown

The real estate market in Marbella and Benahavis continues to show resilience and unique dynamics, as reected in the latest transaction data for 2024 published recently by the Ministry of Housing. Based on the data presented in the charts, three key trends based on the market performance highlight the strengths and challenges of these two sought-after locations:

1. Q2: The Strongest Quarter for Sales. Both Marbella and Benahavis experienced their highest transaction vol-umes during Q2 in 2024. This period consistently outperformed other quarters across the years, reecting a seasonal peak in buyer activity. In Marbella, Q2 alone account-ed for a signicant portion of the nearly 5,000 units sold in 2024, while Benahavis saw similar patterns with Q2 leading its sales gures. This trend underscores the importance of timing for sellers aiming to capitalize on heightened market demand.

2. Marbella: Sustained Sales Growth Despite Market Fluctuations. Marbella´s real estate market maintained its robust trajectory, achieving nearly 5,000 units sold in 2024—well above its historical annual average of approximately 3,500 units. The market has demonstrated con-sistent growth since recovering from the global finantial crisis of 2008-2012, with strong performance across all quarters. Marbella remains a prime destination for both domestic and international buyers, driven by its reputation as a luxury hotspot and its ability to attract steady demand year after year. Looking ahead, 2025 is expected to sustain steady sales, aligning with long-term trends rather than short-term spikes.

3. Downward Trend in Benahavis. In contrast to Marbel-la’s resilience, Benahavis experienced a slight decline in sales over the past two years. After reaching record highs in 2022 with nearly 1,000 units sold, transaction volumes dipped in both 2023 and 2024, falling closer to its historical annual average of around 600 units. While Q2 remained the strongest quarter for Benahavis in 2024, the overall downward trend suggests a cooling off period after several years of rapid growth. This could indicate a shift in buyer preferences or maybe just buyers being more cautious about paying ambitious listing prices.

In summary, the real estate markets of Marbella and Benahavis showcased distinct trends in 2024. While Marbella continued its upward trajectory with strong sales concen-trated in Q2, Benahavis faced a slight decline after peaking in 2022. Both markets exhibit clear seasonal patterns, with Q2 emerging as the most active period for transactions. For buyers and investors, Marbella remains a stable and growing market, while Benahavis presents opportunities for those seeking value amidst its recent slowdown. Understanding these trends is key to making informed deci-sions in these prestigious real estate destinations.

  

The Spanish's goverment announcement os a tax for non-EU buyers: Analysis

On 13 January, Prime Minister Pedro Sanchez announced during an economic forum in Madrid a proposal to increase the tax on the purchase of properties by non-European Union buyers who do not reside in Spain.

The information provided by the government during the appear­ance is so scarce and confusing that it has sparked panic in many sectors and abroad, as Prime Minister literally said ''We are going to limit the purchase of homes by non-resident non-EU foreigners by increasing the tax burden they will have to pay in case of purchase up to 100% of the property's value, something unprecedented in Spain but applied in other countries like Den­mark or Canada." Even the target buyer is not clear and we have to assume that it refers to nationality, so non-EU nationals who reside or will reside in Spain u pon the purchase will fall out of the scope of the measure.

Without knowing exactly the proposed measures or their scope or what the Prime Minister intended to say, we have learnt that the government is exploring two options: a)Modifying the exist­ing Transfer Tax and b) Creating a new special tax specifically targeting these purchases.

Transfer tax is shifted to regional governments, mostly governed by the Conservative Party, so the real effect of this measure is doubtful.

About creating a new tax, in theory it is not possible if there is already an existing tax for the same concept or taxable event. However, we have the precedent of the Solidarity Tax, a comple­mentary tax on State level to Wealth tax (at regional level) who has been admitted by the Constitutional Court.

Finally, the Spanish Constitution establishes that the tax system should not have a confiscatory scope, meaning it should not exhaust the taxpayer's wealth. Although a 100% tax has been proposed for the purchase of homes by non-EU foreigners, this is an exceptional and specific measure.

Confiscatory taxation refers to a tax that eliminates the taxpay­er's source of wealth. Generally, a 100% tax on the taxable base would be considered confiscatory and, therefore, unconstitution­al in most cases.

Of the 12 measures announced by the Prime Minister, at least four must go through the Congress of Deputies, and the tighten­ing of regulations for the purchase of homes by non-EU foreign­ers is one of them.

Therefore, we have to bear in mind that this is just a proposal announced during a forum, that we have to wait for the formal proposal to be released, and that the government cannot develop this measure for non-EU buyers without the approval of the Con­gress.

In the event that this measure if f1nally approved and the law is enacted, its constitutionality will be likely questioned. As com­mented, if the measures depend on regional governments, it will be counteracted. And, once published, we will have to study what alternatives are applicable (i.e., setting a Spanish company).

Rest assured, this proposal is still in its early stages and will un­dergo thorough scrutiny and debate befare any implementation. The government is committed to ensuring that any new measures are fair and constitutional. We will keep you informed of any developments and provide guidance on how to navigate any changes.

Santiago Lapausa Gonzalez- Partner/Economist

JC&A Abogados

 

Marbella & Benahavis Real Estate: Rising prices, but are sellers overestimating the market?

According to the latest data published, the real estate mar­kets in Marbella and Benahavis continue to show strong performance, with property prices experiencing a steady upward trend. The data confirms the resilience of these sought-after destinations, making them attractive for both buyers and investors. However, an important trend to note is the increasing gap between asking prices and actual closing prices, which reflects the fast selling pace of mar­ket priced properties. Here's an overview of the key trends based on the most recent figures:

1. Consistent Price Growth Over the Years, but a Widen­ing Gap. Property prices in both Marbella and Benahavis have been on a steady rise over the past decade. The charts illustrate a clear appreciation in price per square meter, reflecting sustained demand and market conf1-dence. However, while asking prices (Idealista data) have consistently remained above actual closed sale prices (Land Registry data), the gap between them has widened. This suggests that sellers are setting increasingly ambi­tious prices, requiring buyers to go for market priced prop­erties which are selling fast or to negotiate more aggres­sively to reach final sale agreements.

2. Marbella: A Strong and Expanding Market with Seller Optimism. Marbella continues to demonstrate robust price growth, with both asking and closed transaction pric­es rising significantly over time. The latest figures indicate a sharp increase, particularly since 2020, as demand surged post-pandemic. However, the increasing difference between listing and closing prices suggests that while sellers remain confident in the market's strength, buyers are exercising more caution, leading to extended negotia­tion periods. The interest for Marbella's properties as a preferred luxury destination is still there despite the com­plicated geopolitical situation but pricing expectations may need to adjust to maintain transaction momentum.

«As prices continue to rise, strategic pricing and rea­listic expectations will be key to maintaining a healthy transaction flowª

 

3. Benahavis: Exclusive and Resilient, but Facing Pricing Challenges. Benahavis maintains its position as a premi­um market, characterized by exclusivity and luxury. While it has a lower transaction volume compared to Marbella, the price per square meter remains high, reflecting the area's appeal among affiuent buyers. However, the grow­ing gap between asking and closing prices suggests that even in this high-end market, buyers are more cautious in their purchasing decisions. The area's limited supply of high-end properties contributes to price stability, but sellers may need to realign their expectations to market realities to keep transactions fluid.

The latest real estate data confirms that both Marbella and Benahavis remain highly attractive markets, with sus­tained price growth and strong buyer interest. However, the increasing divergence between asking and closing prices shows a more complex negotiation process, requir­ing both sellers and buyers to adjust their expectations. As prices continue to rise, strategic pricing and realistic ex­pectations will be key to maintaining a healthy transaction flow in these sought-after destinations.

 

Can a new property owner be held responsible for the previous owner´s I.B.I. debts?

The answer is yes, but with certain conditions. While the original debtor is the owner at the time the I.B.I. (Property Tax) receipt is issued, if the previous owner is declared insolvent and the debt has not expired, the new owner could be held responsible for settling that debt.

The procedure through which the tax debt is transferred from the previous owner to the actual owner to ensure that I.B.I. debts do not disappear when a property is transferred is known as affection of assets (afección de bienes). With this in mind, here are some key clarifications:

  1. When can the Tax Administration declare the previous owner insolvent? The administration can do so when, after initiating the enforcement procedure, it is proven that there are no realizable or attachable assets or rights in the name of the debtor.

2. Can the debt be prescribed and, therefore, not be claimed from the new owner? The administration has a four-year period to claim the debt, counting from the end of the I.B.I. self-assessment deadline. However, this period can be interrupted by certain actions taken by the administration itself.

3. Is the entire debt, including surcharges and penalties, transferred to the new owner? No. The debt, as long as it is not prescribed, is transferred to the new owner only for its principal amount, without surcharges or penalties, and within the voluntary payment period. From that moment on, the new owner will be responsible for the pending debt.

4. How to avoid this problem? It is simple. It is only necessary to make sure at the time of buying a property, and in the Notary's office in which the sale is going to be carried out, that there are no previous debts of I.B.I. In the case that there were, the purchase can be conditioned to the extinction of that debt or to retain the due amount to pay it later on in the name of the seller.

 

**This is a general article, and since each case is unique, we recommend consulting with your trusted lawyer or tax advisor if you encounter a problem of this type.

 

Marbella & Benahavís: 2024 Shows strenth and stability on the Real Estate Market of Marbella and Benahavis

Marbella and Benahavis real estate markets have always attracted buyers from around the world, offering a unique blend of luxury living and stunning natural surroundings. Analyzing the latest market data helps us understand key trends and opportunities for both buyers and sellers. Below, we break down the performance of these two sought-after areas in the first three quarters of 2024 and beyond.

1. 2024: A Strong Year for the Market. The year 2024 is proving to be a robust one for real estate in Marbella and Benahavis. By the end of the third quarter, both markets have already reached their average yearly sales, showcasing the sustained strength and appeal of these locations. This milestone underlines the consistent demand for properties, driven mainly by international buyers seeking high-quality investments. With the fourth quarter still ahead, these figures suggest that the market is on track to surpass previous records, reaffirming its position as a global hotspot for luxury real estate.

2. Contrasting Performance Between Marbella and Benahavis. While both markets are performing well, there are notable differences. Benahavis, despite showing solid results, is currently 23.3% below its sales figures from 2023.

This decline, while significant, doesn’t overshadow the area’s appeal to high-end buyers seeking exclusivity and tranquility. In contrast, Marbella has seen a 7.5% increase compared to 2023, which was already a strong year. This growth highlights Marbella’s ability to attract a diverse range of buyers, thanks to its vibrant lifestyle, infrastructure, and reputation as a cosmopolitan hub. These dynamics underline the differences in buyer profiles and investment opportunities between the two areas .

 

3. Market Stability and Long-Term Opportunities. Despite global economic challenges, both markets showcase stability, with annual sales averages holding steady over the past decade. Marbella, in particular, exhibits a higher volume of transactions, reflecting its broader appeal and infrastructure. The area continues to attract investors and homeowners alike, drawn to its combination of modern amenities and cultural richness. Benahavis, while smaller in transaction volume, maintains its exclusivity, catering to a niche clientele that prioritizes privacy and luxury. This duality ensures that both areas remain resilient to market fluctuations, offering security and long-term growth potential for buyers and sellers alike.

The Marbella and Benahavis real estate markets continue to thrive, showcasing stability and resilience. By the end of Q3 2024, sales in both areas have already reached average annual levels, highlighting strong demand. Marbella has outperformed with a 7.5% growth compared to 2023, reflecting its broader market appeal, while Benahavis, although 23.3% below last year, remains a prime choice for luxury seekers. With unique advantages—Marbella standing out for its volume and infrastructure, and Benahavis for its exclusivity—both areas offer exceptional opportunities for sellers and investors in one of Europe’s most desirable regions .

 

Marbella & Benahavis: The Evolution of the 1 Million Euros Plus Property Market

Marbella and Benahavis have long been hotspots for luxu­ry real estate on Spain's Costa del Sol. Recent data on property sales and prices in the Golden Triangle areas re­veal interesting trends that reflect growing demand, price resilience, and the evolving preferences of high-end buy­ers. What the latest figures tell us about the current state and future outlook for these markets is outlined below:

1. Strong Growth in High-Value Sales. The flrst chart tracks the number of property transactions in different price segments across recent years in Benahavis. Sales in the €1.5 million to €4 million range (gray bars) and proper­ties over €4 million (yellow bars) have shown significant growth from 2020 onwards, peaking in 2022. This spike reflects a post-pandemic demand surge, as affiuent buy­ers looked for spacious, high-quality homes in scenic are­as with access to nature and privacy qualities that Bena­havis is known for. lnterestingly, while sales in the €1 million to €1.5 million range (red bars) remained steady, the demand for ultra­luxury homes priced over €4 million saw a notable in­crease. This trend underscores a shift in buyer de­mographics and preferences, with more high-net-worth individuals willing to invest in exclusive properties offering high privacy, premium amenities, and unique locations.

2. 2. Market Share Shifts Toward Higher Price Ranges. Looking at the lines representing the percentage of total transactions in each price range, we can see that the share of sales in the €1.5 million to €4 million and over €4 million segments has grown over time. The percentage of transactions in the €1 million to €1.5 million range has gradually decreased as higher-value properties gain a larg­er portian of the market.

By 2023, properties in the €1.5 million to €4 million range accounted for around 12% of the total sales volume, while those over €4 million made up approximately 6% to 8%.

These trends indicate that the Benahavis market is matur­ing towards a more exclusive tier, with demand increasing­ly concentrated in the luxury and ultra-luxury segments.


3. Consistent Price Appreciation in Both Markets. The second set of charts (next page) illustrates the price evolu­tion per square meter for properties in different price cate­gories in both Marbella and Benahavís from 2014 to 2024. Properties over €4 million in Benahavís (yellow line) show a price peak in 2022, reaching approximately €7,000 per square meter. Prices in the €1.5 to €4 million range (gray line) have also climbed steadily, with recent values around€5,500 per square meter.

In Marbella, the pricing trajectory shows a similar pattern, with prices per square meter in the top-tier segment now approaching €7,500. The data reveal Marbella's position as a highly desirable luxury destination, with prices for properties over €4 million consistently staying above other price ranges. Both markets have shown resilience and steady appreciation, demonstrating their appeal and sta­bility, even in uncertain economic climates.


 

4. Key Takeaways for Buyers and lnvestors. These in­sights suggest that both Marbella and Benahavís are be­coming increasingly attractive to luxury buyers, with prop­erty prices in top segments continuing to rise. Far buyers, this indicates an opportunity far long-term value apprecia­tion in the ultra-luxury sector, particularly as demand out­paces supply in these exclusive markets.

lnvestors can also interpret this data as a sign of strong market fundamentals. The consistent price growth per square meter across all categories indicates a stable in­vestment climate, with properties in the higher price ranges offering potential far salid returns.

As summary and looking at the charts, the trends dis­played reflect the growing exclusivity of Marbella and Benahavís. Far both areas, the premium placed on luxury properties over €1.5 million - especially those in the €4 million and above bracket - continues to intensify. Whether you are a buyer, investor, or seller, the data suggest that the demand far top-tier properties in Marbella and Bena­havís will remain strong, driven by both local appeal and international interest in the Costa del Sol's luxury real es­tate market.


New Division of Keller Williams Spain: KW Commercial Spain & Commercial Corporate.

After months of dedicated work, Keller Williams Spain proudly announced the launch of its new division, Keller Williams Commercial Spain, in mid-2024. This division, much like KW Luxury, which specializes in high-end real estate, will focus on the commercial property sector. Within this division, a dedicated department called Keller Williams Commercial Corporate will handle larger corporate transactions.

The newly established Commercial Division will specialize in real estate transactions across various sectors, including land, buildings, hospitality, offices, retail, and logistics. Agents who wish to operate under the Keller Williams Commercial brand will have the opportunity to earn a specialized Commercial designation. To receive this designation, agents must meet specific criteria, including experience in the commercial real estate market, at least one year of collaboration with Keller Williams, and completion of specialized training in commercial transactions.

The leadership team for Keller Williams Commercial Spain includes Alfonso Lacruz as Executive Director, Paqui Torres as Institutional Relations Director, Juan Camarero as Technical Director, and Juanjo Garcia as Business Development Manager. Together, this team is wellpositioned to lead the new division and offer clients expertise across the diverse commercial real estate landscape in Spain.

Your new home awaits.