What legal differences exist between short-term and long-stay rental contracts?

In Costa del Sol, the primary legal distinction between short-term (holiday) and long-stay rental contracts lies in their governing legislation and associated obligations. Short-term rentals, often less than two months, are regulated under specific regional tourism laws (Decreto 28/2016 de la Junta de Andalucía). These require properties to be registered with the Regional Tourism Registry, meet specific quality and safety standards, and comply with strict advertising and pricing regulations. Owners must also obtain a license and often manage guest registration with the police (Guardia Civil/Policía Nacional). Income generated is typically subject to specific non-resident tax rules, which can vary depending on where the owner is tax resident. Conversely, long-stay rentals, generally exceeding one year, fall under Spain's Urban Leases Act (Ley de Arrendamientos Urbanos – LAU 29/1994). This legislation provides significantly more protection to the tenant, dictating minimum contract durations (currently three years, renewable up to five for individuals, or seven for corporate landlords), notice periods for termination, and limits on rent increases. Properties under long-stay contracts do not require a tourist license. Legal requirements primarily revolve around drafting a comprehensive contract that adheres to LAU stipulations, including clauses on deposits, inventory, maintenance responsibilities, and utilities. Tax implications for long-stay rentals also differ, often allowing for more deductions for resident landlords. It is crucial for landlords to clearly define the purpose and duration of the rental in the contract to ensure it is correctly categorized and adheres to the relevant legal framework, thereby avoiding potential penalties or disputes with tenants or authorities.