"Apartamentos Turísticos" in Spain: investing without the risks of VUT

Before going any further, it is essential to distinguish between two realities that the press and platforms often confuse. On the one hand, the Viviendas de Uso Turístico (VUT): these are ordinary residential accommodations that their owners decide to rent on Airbnb or Booking. On the other hand, the Apartamentos Turísticos (AT): fully-fledged tourist accommodation establishments, governed by a specific legal framework.

The Ley 15/2018 de Turismo de la Comunitat Valenciana is explicit on this subject: the regulations on VUTs do not apply to blocks and sets of apartamentos turísticos, which have their own regime. Apartamento Turístico (AT) is legally comparable to a hotel — but in apartments. It is subject to a tourist classification, requires a reception, reception services, and is operated under a single owner or by delegation to a professional operator.

WHAT THIS MEANS FOR YOU IN CONCRETE TERMS
When the Valencian Community introduced its moratorium on new VUT licenses (extended until 2026), TAs were not affected. When the Horizontal Property Law imposed since April 2025 a 3/5 vote of the co-owners to authorise tourist rentals, the TAs were not affected either. Their tourist vocation is included in the real estate project itself, not subject to the subsequent approval of neighbours.

It is this fundamental difference that explains the increasing premium that these homes enjoy on the market. In a context where individual licences are becoming scarce, owning a property of which tourism is a constituent — and not contingent — represents a sustainable competitive advantage.

The scheme is elegant in its simplicity. You are buying a freehold apartment in an AT residence. You become 100% the owner of a property whose tourist destination has been validated as soon as the building permit is issued.

The management company: your operational partner
The residence is operated by a professional operator - the management company - which takes care of the entire tourism value chain: marketing on major platforms (Booking, Airbnb, specialized portals), welcoming travelers, cleaning and maintenance, managing reservations and optimizing the occupancy rate, accounting and remitting revenues.

In return, the management company receives a commission on gross income. This rate varies depending on the operators and the services included, but for a quality integral management, you should anticipate between 20 and 35% of gross revenues. This is not a detail: include it in your net profitability calculation. An operator who announces staggering net figures while having reduced this commission deserves your distrust.

Your personal use: contractual flexibility
Most AT programs provide for a period of personal use for owners - usually several weeks to a few months per year, depending on the terms of the management contract. This is one of the major attractions of the model: you are not a pure financial investor cut off from your assets. You can enjoy the apartment, the pool, the services of the residence, knowing that it works for you the rest of the time.

Be careful, however: the terms of personal occupation (reserved periods, notice, conditions) vary considerably from one program to another. This is one of the first clauses to be carefully examined before signing a compromise.

Income: how is it distributed?
The rental income generated by your apartment is calculated according to two main models. Either a guaranteed fixed rent - the operator pays you a predefined amount regardless of the actual occupancy rate, which offers maximum visibility but limited participation in the upside of the market. Or a pro rata sharing of the net income of the residence or your apartment, a model that exposes you more to seasonal variations but allows you to take full advantage of the good seasons.

On the Costa Blanca, the most recent market data indicate gross returns of 5-9% per year under day-to-day management. In the intensive summer season, with a high-performance operator and a quality location, the gross yield can exceed 12%. These figures are gross before taxes and fees. Net profitability, after management fee (20–35% of gross revenues), operating expenses and non-resident rental income tax (IRNR), will be significantly lower. But it remains competitive with Western European real estate markets.

AN OFTEN OVERLOOKED TAX ADVANTAGE: RECOVERABLE VAT
Because an Apartamento Turístico is an economic activity in its own right - and not just a residential dwelling - the acquisition of a new AT is subject to Spanish VAT (IVA) at the rate of 21%, and not to the reduced rate of 10% applicable to ordinary new homes. This apparent additional cost actually has an advantage: when the investor structures his acquisition in the context of an activity subject to Spanish VAT (in particular via an operating company or an operator that invoices VAT to travellers), this purchase VAT is in principle recoverable from the Spanish tax authorities. On a property costing €250,000, this represents up to €52,500 in potentially recoverable VAT - a considerable cash lever. However, this recovery is not automatic: it is conditional on the legal structure of the acquisition, the status of the operator and the registration for Spanish VAT. This is one of the first points to be validated with a tax lawyer before signing - and one of the reasons why legal support is not optional in this type of investment.

TAX VIGILANCE
As a non-resident landlord, your Spanish rental income is subject to Non-Resident Income Tax (IRNR). If you live in a country of the European Union or the European Economic Area, the applicable rate is 19% on net income — i.e. after deduction of expenses directly related to the rental (management fees, IBI, insurance, maintenance, loan interest on a pro rata basis). For non-EU/EEA residents, the rate is 24% on gross income without deduction — but a decision by the Audiencia Nacional issued in July 2025 opens a breach: it recognises the right of non-EU residents to deduct these same charges. This judgment is not yet final, an appeal to the Supreme Court remains possible, but it is already advisable to file a request for precautionary rectification to preserve your rights on non-prescribed exercises. A point to follow closely with your tax advisor - MCB can refer you to qualified partners in Spanish non-resident tax law.
 

The AT model serves very different purposes, and this is one of its strengths.

The wealth investor. You are looking to diversify your real estate portfolio beyond the French or Belgian markets, with a tangible asset in a mature tourist area, a regular return without active management on your part, and limited exposure to individual regulatory risks. The AT model ticks all of these boxes.

The future expatriate or retiree. You are planning to move partially or completely to Spain in the next five to ten years. Acquiring an AT today allows you to build a base on the Costa Blanca while financing some of your property charges through rental income – a gradual and financially rational real estate transition.

The family looking for a second home. Holidays in the Mediterranean, the Valencian sun, an apartment that belongs to you and awaits you. And which, in the weeks when you're not there, generates income rather than sleeping empty. The AT model is the most successful formula for reconciling personal pleasure and financial sense.

The "Apartamentos Turísticos" represent today one of the best positioned real estate investment formats on the Costa Blanca. The convergence of the regulatory context (pressure on VUTs, scarcity of new authorisations), market dynamics (price increases, sustained tourist demand) and the intrinsic characteristics of the model (structural licence, delegated management, flexibility of use) creates a window of opportunity that savvy investors would be wrong to ignore.

That said, not all AT programs are created equal. The quality of the management operator is the first factor of success or failure. A mediocre location will never be saved by a beautiful brochure. And a poorly negotiated management contract can turn a great opportunity into a wealth disappointment.

This is precisely why MCB Costa Blanca Real Estate exists: to carry out this work of selection and analysis upstream, and to present you only with programmes in which we would invest ourselves. If you would like to discover the AT residences currently available on our market - or simply delve deeper into the subject during a no-obligation consultation - we are at your disposal.