Spain: CNMC report calls for improving tourist housing regulations

In a report published on Monday, August 13, the National Commission of Markets and Competition (CNMC) of Spain has recommended a thorough review of the regulations on so-called “tourist housing”, approved in recent years, to unify criteria and eliminate certain restrictions.

The CNMC considered, after analyzing the regional and local regulations in the country, that there is a serious regulatory disparity in terms of tourist housing, caused by the proliferation of local regulations, resulting in a “highly restrictive” regulatory framework.

The agency noted that tourist accommodation services, through digital platforms such as Airbnb or HomeAway, have led to an expansion of homes for tourist rental, with great benefits for users and the economy of cities, but also disadvantages for previous business models (hotels).

The CNMC emphasizes that the regulation of tourist housing must be motivated by “the existence of a market failure or an overriding reason of general interest”, and must be “proportionate”. In the analysis carried out, the regulatory body concludes that many regional and local regulations “do not pass the necessity and proportionality test”, which is why a “in-depth review” of the current legislation is necessary.