Spain: Competition Agency disagrees with Local Government over housing rules

Spain’s competition watchdog has issued a new report on the Proyecto de Decreto del Gobierno de Aragón, a piece of legislation that seeks to regulate the renting out of homes to tourists. The document disagrees with the Aragón government’s proposal and the various requirements it imposes, such as fixed rental periods and other restrictions on effective market dynamics.

The proposed law considers “housing that is cedes temporarily by its owners, directly or indirectly, to a third party, furnished and equipped for immediate use […] for profit” as ‘Tourist housing’. This act of renting between individuals, part of the so-called ‘sharing economy’, brings several benefits to consumers by offering a wider range of housing, reducing transaction costs and promoting innovation by reducing prices.

The project, however, establishes several requirements that are criticised by the CNMC’s latest report. Among them is the imposition of a one-month cap on contracts, as well as forbidding the renting out of individual rooms and demanding all relevant housing be registered, all of which are considered unjustified by the CNMC.

Source: CNMC

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