Spain’s Supreme Court eliminates the new Rental Tourism Registry

Raymundo Larraín Nesbitt, June, 1. 2026

Marbella-based Larrain Nesbitt Abogados has over 23 year’s taxation & conveyancing experience at your service. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

By Raymundo Larraín Nesbitt
Lawyer – Abogado
1^st of June 2026

Introduction

It’s no secret Spain faces a huge housing problem, which has only been compounding and aggravated over time with the laws the government has approved in a continued market interventionism, which is backfiring. Spain’s property and rental prices have reached all-time highs. In fact, housing has become Spain’s number one problem, followed closely by high unemployment and illegal immigration. To that end, the Spanish government approved a batch of laws last year in an attempt to alleviate the situation.

One of the star measures was the creation of the new Registro Único Estatal de Alquileres (national registry for holiday rentals). The goal, on paper, was to exert control over holiday rentals nationwide, by weeding out illegal ones, to facilitate accommodation, and increase the security and supply which would hopefully bring down the price of rentals. Whilst this sounds good on paper, unfortunately, in reality, it panned out very differently. The road to hell is paved with good intentions.

The issue was that, as explained in multiple articles, Spain’s regional Authorities already had devolved competencies over tourist rentals. In fact, over the past decade, every region in Spain has passed its own set of laws on holiday rentals and has Regional Tourism Authorities that exercise strict control over them, even granting Tourism Licences.

The central government unilaterally decided to invade devolved competencies constitutionally attributed to Spain’s 17 autonomous regions by creating a new central registry, which in effect duplicates and overlaps their competencies. I reported this in this article published by Idealista.

I’ve heavily criticised this in several articles. The European Union also took notice and slapped the wrist of Spain for going out of its way to overcomplicate matters. The European Union heavily criticised Spain's new national short-term rental registry, stating that the duplicate registration requirement violated EU short-term accommodation rules. The European Commission previously issued warnings to Spain, arguing that the newly introduced national registry created an unnecessary administrative double burden for hosts, conflicting directly with EU Regulation 2024/1028.

Some autonomous regions appealed against this new law from the government to Spain’s Supreme Court.

This week, we’ve learned that Spain’s Supreme Court - the highest court in the land - has overturned the new national holiday registry with its 620/2026 ruling, in effect scrapping it altogether. This affects NRUA code applications, suppressing them.

As a result of the Spanish government purposely ignoring the Rule of Law, cornerstone of any self-respecting democracy, it has now introduced (even) more legal uncertainty and confusion in the real estate market. Investors, and consumers at large, dislike legal uncertainty. Everyone wants to work within a safe legal framework and play by the rules. Clear laws enable legal security and foster investment and job creation in their wake. Clearly, Spain’s government has overreached by invading legal competencies constitutionally attributed to Spain’s 17 regional autonomous governments. The government must cease to continuously undermine, if not contravene, Spain’s Constitution at every step.

The saddest part is that this legal outcome was entirely foreseeable and avoidable.

Impuesto de Solidaridad a las Grandes Fortunas (ISGF) – national Wealth Tax

On another unrelated taxation matter, I bet my bottom dollar that we are also going to see this same legal outcome as well with Spain’s Impuesto de Solidaridad a las Grandes Fortunas (or ISGF, for short). This was another ‘star’ measure of the government. Again, because of constitutionally devolved competencies, regional authorities in Spain have competencies over certain taxes, which include Wealth Tax.

Depending on the political ideology of the regional administration, some of them passed laws which, in effect, suppressed Wealth Tax i.e. the regions of Andalusia and Madrid. Spain’s central government, yet again, decided to step in decisively for electoral reasons and quash this by enacting its own national law to override and supersede the constitutionally regional taxation competencies. As a result, many of these autonomous regions also filed appeals to overturn the government’s new ISGF law.

In my humble opinion, they are right, and their appeals will be upheld over the next couple of years, overturning the ISGF as well.

Conclusion

Long story short, Spain’s incumbent administration has a serious penchant for Authoritarianism that I’ve not seen since the likes of General Franco. It has become only too apparent how this government continuously undermines and attacks the Spanish Constitution and the principles it enshrines. I was born into the yoke of dictatorship in the 70’s, and over time, the country was freed to embrace the ideals and freedoms of democracy, modernising it and bringing it out of its shell. Through democracy, embodied by our Constitution, Spain has enjoyed the trappings of peace and prosperity for over 48 years, which many now take for granted, ending centuries of continued internal warfare, hardship, and political strife.

Spain’s Constitution has acted as the guarantor of peace and prosperity since 1978. Yes, it’s far from perfect, but it’s the best we’ve got. The government must curb its relentless autocratic tendencies to overreach by intervening in every little aspect of society, including the real estate market, in breach of existing laws.

The government - any government - should never cross the red line drawn by Spain’s Constitution. Spain’s Constitution embodies the spirit of former foes agreeing to lay down arms and bring peace and understanding to the land. It opened a beautiful chapter in our history, reconciling both sides, as equals, as one nation, healing the festering wounds left open by a fratricidal civil conflict.

Only chaos and political instability await past the thin red line. Our grandparents, who paid the ultimate price, know all too well where that dark path leads to. Let us learn from the lessons of the past and respect and abide by our Constitution.

"Democracy is the worst form of government, except for all those other forms that have been tried from time to time." – Sir Winston Churchill

Sir Winston Leonard Spencer-Churchill (1874 – 1965). Born into a privileged aristocratic family at Blenheim Palace, he was an eminent British career officer, artist, historian, journalist, delicious eccentric and laureate writer – awarded the Nobel Prize in Literature in 1953 “for his mastery of historical and biographical description as well as for brilliant oratory in defending exalted human values.” With dogged single-minded determination, he defied alone and managed to stave off, the tyrannical Nazi wave in WWII, unwaveringly assisted by our American cousins, which threatened to swallow whole the United Kingdom as it had already overrun most of Europe. He resolutely led the country out of its darkest hour, restored Europe's freedom and laid the groundwork for peace and prosperity which all future generations have come to enjoy since and taken for granted, or so it would seem. As a keen-eyed historian, in line with fellow Founding Fathers Schuman and Monnet, he was quick to grasp and understand the importance of a united Europe to avoid repeat past mistakes which had resulted in two world wars that ravaged the continent. Consequently, he became a staunch defender of the idea of creating a single supranational political and economic entity which reconciled old foes and would act as guarantor of peace & prosperity in the continent (in his own words, a “United States of Europe”); in time, this European fellowship would be known to us as the European Union. Churchill was instrumental, and the key driving force, behind the creation of the Council of Europe, a forerunner of what is now the European Union. He is credited as one of eleven Founding Fathers of the Union. Churchill incarnated like no other the best of British values. A child of the House of Commons, he was a proud servant of the State, never its master. A true statesman who would always put ahead of any consideration the best interests of our people, semper fidelis to Lincoln's Gettysburg ideals, by tearing down divisive walls and fostering at every opportunity union.

Simply put, he’s likely the finest British politician ever to grace 10 Downing Street.

At Larrain Nesbitt Abogados (LNA) we have over 23 years of experience specialising in property conveyance and taxation. We also assist clients with immigration & residency visas (digital nomad visa), and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarising, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.