Costa del Sol local authorities introduce new restrictions for short-term accommodation

Leaders of the Malaga City Council have approved a change to the plan which will stop new hotels and hostels from being automatically approved on residential property. Every new project within these zones will require a full-scale planning modification. It must show a broad public benefit, and be directed specifically at the neighborhood. If the rule is published in the legal text, any requests submitted after that date will be suspended for a maximum of three years.

Earlier applications continue to be processed. This latest step builds upon earlier limitations introduced since 2024. Officials are hoping to give more homes back to locals while trying to balance the tourism industry as the main economic driver.

The current scale of tourism rentals in Malaga

Malaga alone has over 12000 short-term rental properties registered in official regional records. The properties have a total of sixty-four thousands beds. Separate estimates based on national statistics put the figure at a lower level, around 8 thousand properties that can accommodate 34 thousand people. Holidays on the Costa del Sol are a hit, but there is a need for balance, especially as looming housing crises threaten to disrupt the holiday season.

The highest concentration is in the centre of the city and around Plaza de la Merced. On some streets, 80 per cent or more of the homes have been converted to tourism. There has been an increase in pressure on neighbourhoods including Pedregalejo El Palo La Malagueta Huelin.

The tightening of regulations will be done in stages

At first, restrictions were introduced gradually. First came the rules requiring independent services and access for new tourist residences within apartment blocks.

A three-year-pause in August 2025 stopped all new registrations for forty-three neighbourhoods that were saturated with tourist housing. The number of homes accounted for more than eight percent of the total housing stock. Some projects were allowed to continue, including those that had already begun and buildings with full tourist apartments.

The new plan eliminates these gaps by treating all types of tourist accommodation on residential land the same, including hotels.

Shop units will face stricter conversion rules

The same reforms On main streets and in squares, limit the number of conversions from shops to apartments for rent. The remaining conversions will have to meet stricter requirements for size, light and ventilation when they are considered for tourist rentals.

These steps, say council members, will keep local businesses afloat and help protect the housing stock for residents. Opposition groups, neighbourhood associations and other organizations argue that more housing construction and even stricter limits are needed. For now, however, the council is still conservative.

Costa del Sol license rules

Marbella continues to accept applications for short-term rentals in other parts of the coast. Malaga’s capital and Manilva have a three-year suspension on new licenses. Mijas has added extra conditions.

Licences are tied to the property, rather than the owner. After a simple update of ownership with the regional tourism registry, buyers can continue to rent out their registered home.

Compliance is simplified with national changes

The Supreme Court ruled in May 2026 that the nationwide registration for short-term rental will be discontinued. Andalucia’s regional VFT licences are now the primary requirement.

Operators must provide information As an example, you should follow emergency procedures and maintain the proper insurance. In serious cases, fines for unlicensed activities can be high.

Marbella has a stricter licensing policy than many of its neighboring towns, but it is still a tight-knit community. New applications can still be submitted as long as the requirements of the council and neighbourhood association are met.