Understanding the suspension of Tourist Rental Licenses in Dénia: 10 key questions answered for expats & investors

Understanding the suspension of Tourist Rental Licenses in Dénia: 10 key questions answered for expats & investors

  • Mar 31, 2025

Dénia, a jewel on the Costa Blanca, has long been a favorite destination for tourists and a lucrative market for holiday rental properties. However, recent developments have raised concerns among property owners and investors. The Dénia Town Hall announced on August 2024 a suspension of new tourist rental licenses, sparking questions about the future of this sector. At INMO·EXPERT, we understand the importance of staying informed, especially for our international clients. In this article, we address the 10 most frequently asked questions to clarify the situation and guide you through these changes. We're here to help you navigate these new regulations and make informed decisions about your property investments in Dénia.

1. Why has the Dénia Town Hall suspended the granting of new tourist rental licenses?

The Dénia Town Hall has temporarily paused the issuance of new tourist rental licenses to allow for a comprehensive review and update of the regulations governing this activity. The primary goal is to ensure sustainable tourism practices, address concerns raised by local residents about overcrowding and noise, and maintain the quality of the tourist experience in Dénia. The council aims to strike a balance between the economic benefits of tourism and the well-being of the community. This suspension is seen as a necessary step to create a more regulated and sustainable tourism model for the future.

2. How long is the suspension of new tourist rental licenses expected to last in Dénia?

This suspension is initially set for one year and can be extended. This means it will last for at least one year, while the Town Hall reviews the situation and considers further regulations. We will monitor the situation closely and provide updates as soon as new information becomes available. 

3. Which areas of Dénia are affected by the suspension of tourist rental licenses? Where exactly is the "urban area" of Dénia? 

The suspension only applies to properties located within the urban area (the "casco urbano") of Dénia. This area is roughly defined as the zone extending from Joan Fuster Avenue to Carrer dels Furs and Avenida Andalucía, and from the port to Avenida Montgó, Ramón Ortega, and Abu Zeyan Avenue. Please contact us for a precise map of the affected area to verify if your property is impacted. We can also advise on areas just outside the urban zone that may offer alternative investment opportunities. 

Denia-map

4. Are areas outside the Dénia city center, such as Les Marines, Les Rotes, and Montgó, also affected by the suspension?

The current suspension of new tourist rental licenses only applies to the urban area (casco urbano) of Dénia. This means that areas such as Les Marines, Les Rotes, and Montgó are currently exempt from these initial restrictions. The Town Hall has indicated that the main focus is on addressing issues related to co-existence in the city center. While there is a possibility that these areas could be subject to future regulations, they are currently not affected. This presents an opportunity for investors to consider properties in these desirable areas just outside the city center, which are currently not subject to the suspension. 

5. I already have a tourist rental license. Does this suspension affect me?

Generally, the suspension of new licenses does not directly affect existing, valid tourist rental licenses. However, it's crucial to stay informed about any potential updates to the regulations that may require you to adapt your operations or renew your license under new guidelines. INMO·EXPERT recommends that all license holders ensure they are fully compliant with current regulations to avoid any issues.

6. What are the alternatives to tourist rentals in Dénia?

If you're considering alternatives to tourist rentals, several options are available. Long-term rentals offer a stable income stream and reduce the burden of constant turnover. Seasonal rentals, catering to students, digital workers or retired couples during specific periods, can provide a good balance. Alternatively, you might consider selling your property, especially if you're seeking to exit the rental market altogether. Each option has its pros and cons, and INMO·EXPERT can help you assess which is best suited to your individual circumstances.

7. What criteria is the Town Hall considering for future regulations of tourist rentals?

While the specific details are still under review, the Dénia Town Hall is likely considering criteria such as zoning restrictions (limiting tourist rentals to certain areas), quality standards (requiring minimum amenities and services), safety requirements (ensuring properties meet building codes and safety regulations), and potentially a cap on the number of tourist rental licenses in certain areas. The goal is to create a fair and sustainable framework for the industry.

8. How will the Town Hall ensure compliance with the new regulations?

The Town Hall is expected to implement stricter monitoring and enforcement measures to ensure compliance with the new regulations. This could include increased inspections of rental properties, closer monitoring of online advertising platforms, and enhanced collaboration with local police to identify and penalize illegal rentals.

9. What impact is this suspension having on the Dénia real estate market?

The suspension has created some uncertainty in the Dénia real estate market, particularly for investors focused on tourist rentals within the urban area. While the long-term impact is still unfolding, it could potentially lead to a temporary decrease in demand for properties within the urban area. However, it could also create opportunities for investors who are willing to adapt their strategies and explore alternative rental models.

10. Where can I get reliable advice and assistance regarding tourist rentals in Dénia?

Navigating the complexities of tourist rental regulations in Dénia can be challenging, especially for foreign investors. INMO·EXPERT is here to provide you with expert advice and assistance. We can help you understand the latest regulations, assess the impact on your property, explore alternative rental options, and ensure full compliance with all legal requirements. Our team is dedicated to helping you make informed decisions and protect your investments in Dénia.

The suspension of tourist rental licenses in Dénia represents a significant shift in the local real estate landscape. While it creates some uncertainty, it also presents opportunities for investors who are willing to adapt and seek professional guidance. Staying informed and seeking expert advice is crucial to navigating these changes successfully. INMO·EXPERT is committed to providing our clients with the knowledge and support they need to thrive in the Dénia real estate market. Let's discuss your goals and develop a strategy that works for you.

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So, you bought or are planning to buy a property in Spain. We will inform you about property taxes and utility bills in this article.
Any owner of real estate, being a resident or non-resident, must frequently pay property maintenance taxes, such as:
The annual municipal tax on real estate property "Impuesto sobre Bienes Inmuebles"
This tax is paid by private individuals, regardless of whether they are tax residents or not. The amount of this taxation in Spain is 1% of the cadastral value of the property, although it may vary slightly, depending on the province in which the property is located.