Legal U-turn in Spain: Supreme Court overturns central tourist accommodation register
The decision by the highest judicial body has overturned the government's decree on a unified register of apartments, which opens the door for mass compensation claims from landlords and brings relief to short-term rental platforms.
The Spanish government's attempt to centralise control over private accommodation has suffered a complete legal defeat. The Supreme Court of Spain has ruled that the official Madrid authorities do not have the legal power to establish a unified register of tourist apartments, thereby confirming that the regulation of this sector remains exclusively in the hands of regional authorities. This decision not only instantly changes the operational rules of the game in one of Europe's most important tourist markets, but has also triggered an avalanche of financial claims from affected property owners.
The entire case has caused tensions between the central state and the regions from the very beginning, and Brussels further complicated the situation. The European Commission sent two official warnings to the Spanish authorities, pointing out that the introduction of such a register violates European rules on the freedom to provide services and creates unnecessary administrative duplication.
Blocking thousands of properties and a financial toll of poor regulation
The main problem with the controversial regulation was the requirement that all properties must have a state registration number in order to be advertised on major platforms like Airbnb or Booking.com. Due to administrative slowness and complicated procedures, thousands of properties were completely blocked for months and removed from the market. Andalusia suffered the biggest blow, where more than 25,000 properties – a quarter of the total number across Spain – were left unable to operate. Within the Andalusian region itself, the province of Málaga fared the worst, which has as many as 88,000 registered holiday homes and apartments.
Now, following the Supreme Court's ruling, the Spanish federation tourist accommodation Fevitur estimates that the total damage for the sector could reach a staggering €160 million. Property owners who have suffered losses are not wasting any time; legal preparations for damage compensation are already in full swing.
Model based on the aviation industry and mass lawsuits against the state
Legal experts from the Salama Legal law firm reacted quickly and launched a specialised platform that brings together affected landlords. Their plan is to group lawsuits according to the specific situations of the owners – from those who are merely seeking reimbursement of administrative fees and documentation costs, to major landlords claiming substantial compensation for lost profits due to months of forced inactivity.
Interestingly, Spanish lawyers have decided to apply the mass litigation model that has been used for years in the aviation industry for compensation claims due to flight cancellations. Given that the statutory deadline for submitting claims is one year, an aggressive documentation collection campaign is expected. In order to speed up the process and avoid lengthy trials, legal representatives have also announced their readiness for settlements with the state.
This Spanish scenario is a clear message to regulators across Europe who are trying to rein in short-term rental market. It shows that the adoption of restrictive rules “off the cuff”, without respecting local authorities and European directives, can ultimately result in a huge bill that the state itself will have to pay.
SOURCE: surienglish.com
