Landlords breaking the rules could be hit with fines of up to €900,000 (£772,000)
Catalonia has moved to impose price controls on short-term “seasonal rentals” in a bid to curb soaring prices of flats that have sparked a series of protests across the country.
The law, which is expected to be confirmed by the Catalan regional parliament before this summer, aims to distinguish rental property for locals from that for tourists.
Salvador Illa, the Socialist regional president of Catalonia, defended the move, claiming a right to “interfere in the housing market when it does not work and the right to housing is at risk”.
The legislation aims to protect local people from paying the same rate for flats as holidaymakers, which is normally much higher. Figures for the new maximum rates are yet to be announced pending ratification of the law.
Rentals of less than one year have allowed landlords to avoid caps on rent increases that apply to longer-term contracts, and grant fewer rights to tenants.
The Republican Left of Catalonia (ERC) party said the new statute would help to end “landlord trickery” to get around price controls.
Landlords found to be in breach of the rules could be hit with fines of up to 900,000 euros (£772,000).
Business associations in Catalonia criticised the proposed law, saying in a statement that it would cause a “serious distortion of the legal framework that would affect an essential market for labour, academic and social mobility in Catalonia.”
Spain is trying to manage the success of its booming tourism sector – which accounts for at least 12 per cent of GDP – with demands for more affordable housing, after protest groups claimed tourist flats in popular cities and resorts push up rental prices for locals.
Against this backdrop, taxes on holidaymakers have been imposed in parts of Spain in the hope this will usher in more sustainable tourism.
Cash raised from tourist taxes is invested in conservation projects and to improve the tourism infrastructure.
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Barcelona was the first city in Spain to bring in a tourist tax in 2012. In February, the city council voted to double the charge, making it one of the most expensive cities in Europe in terms of tourist taxes.
Guests in five-star hotels in Barcelona will see the daily tourist charge rise from €3.50 to €7.
Last month, the Balearic Islands’ regional authority voted to increase its tourism tax and put a levy on hire cars as the archipelago tries to contain overtourism.
Other cities such as Málaga and Toledo have also imposed a tourist tax on visitors as their popularity increases among holidaymakers.
Unlike Venice, which charges visitors €10 to visit, the taxes are not designed to put people off coming, but to raise more cash for the cities levying them.
Madrid, which has become one of the most fashionable places to visit in Spain, has rejected imposing a tourist tax – so far.
“The left in general loves to impose taxes and rates and in Madrid we have already shown that we don’t like rates or taxes,” said José Luis Martínez-Almeida, the conservative Madrid mayor.
