"I'll buy a flat in Benidorm and put it on Airbnb" is the sentence we hear most often at our office on Avenida Comunitat Valenciana. It is also the one that needs the most qualification. Benidorm has more tourist beds than any other town in the Valencian Community, but since 2018 the Town Hall has refused planning-compatibility reports for individual flats in residential buildings, in 2025 it tightened the requirements, and in 2026 it is already collecting €50,001 fines. This guide explains which flats can be holiday lets, what paperwork you need, what you risk by letting without a licence and, above all, whether it pays compared with a long-term let using 2026 figures.
Which flats can be holiday lets in Benidorm (and which cannot)
The underlying rule is a planning one. Since September 2018 Benidorm has interpreted Article 111 of its General Plan to mean that tourist use is only allowed in tourist-apartment buildings, aparthotels and complete blocks, not in individual homes inside residential owners' associations. Without the municipal planning-compatibility report there is no entry in the regional Tourism Registry, and without that there is no licence.
The regional Decree-Law 9/2024 (August 2024) obliged town halls to accept that one property can have both residential and tourist use, and Benidorm responded with the ninth interpretation of its General Plan, approved unanimously on 27 October 2025: a tourist home must comply with both residential and tertiary regulations at the same time, have at least 38 m² or a linked parking space, hold an occupancy licence and have the express authorisation of the owners' association. That last requirement matches the reform of the Horizontal Property Act in force since 3 April 2025: communities can ban or restrict tourist use by a three-fifths majority, and new registrations need their approval.
In practice there are three situations in 2026: (1) apartments in tourist blocks or aparthotels in Levante, Rincón de Loix or Poniente, where tourist use is the natural one; (2) homes that already hold a registration number obtained before 2018 or with a favourable compatibility report, whose licence transfers with the sale and is renewed every 5 years; and (3) ordinary residential flats, which cannot be holiday lets unless both the community and the Town Hall authorise it. If you want to invest for holiday letting, buy in categories 1 or 2 and insist on seeing the registration number before signing the deposit contract.
The paperwork: regional registry and the national registry number
Besides registration in the Valencian Tourism Registry (valid for 5 years, renewable), since 1 July 2025 the single short-term rental registration number under Royal Decree 1312/2024 is compulsory. It is obtained through the Land Registry and platforms require it to publish a listing: without it, Airbnb or Booking remove the advert. We have a step-by-step guide to the tourist licence in Alicante and Benidorm with the full documentation.
The fines are now real: €50,001 per property
Benidorm has moved from warnings to collection. Since mid-2025 the Local Police have inspected about 200 homes advertised as holiday lets: 107 had a valid registration and, of the other 89, 73 remain under inspection and 16 have a proposed penalty. In July 2026 the Town Hall confirmed the first four fines collected, of €50,001 each (halved for prompt payment), arising from 70 complaints affecting 196 homes. The Valencian Tourism Act allows fines of up to €600,000 and closure of the accommodation for very serious infringements. Letting "under the radar" in Benidorm is no longer a strategy: platforms cross-check data with the authorities through the national registry.
How much it really earns: holiday let versus long-term let
Take a real example from our portfolio: a 2-bedroom, 70 m² apartment on Playa de Levante, market price around €310,000 (idealista puts the zone at €4,421/m² in July 2026).
| Long-term let | Holiday let (licensed) | |
|---|---|---|
| Gross annual income | €1,200/month × 12 = €14,400 (€17.1/m²) | €125/night × 65% occupancy = €29,650 |
| Costs specific to the model | Community fees, IBI, insurance, 1 void month: ≈ €2,400 | Platform fees (15%), management (20%), cleaning, utilities, consumables, IBI, community: ≈ €14,500 |
| Net before tax | ≈ €12,000 (3.9%) | ≈ €15,150 (4.9%) |
| Tax treatment (resident) | 50% income-tax reduction | No reduction; 100% taxable |
| Net after income tax (30% rate) | ≈ €10,200 | ≈ €10,600 |
| Time involved | Minimal | High, or outsourced |
The holiday-let figures are cautious estimates (65% annual occupancy and a €125 average rate, consistent with 2026 prices in Levante), and every flat is different. Non-resident owners pay 19% (EU/EEA) or 24% on the income with fewer deductions, which narrows the gap further. The conclusion repeats in most cases we analyse: after costs, management and tax, a licensed holiday let beats a long-term let by a narrow margin, in exchange for far more work, more wear on the property and growing regulatory risk (the Government proposes raising tourist VAT in the decree being voted on in September). Without a licence the sums are negative: a single fine wipes out five years of difference.
What is beyond doubt is the effect on the sale price: in Benidorm, an apartment with a valid tourist licence in a tourist block sells at a clear premium over the same flat without one, because international buyers value it. If you own one, it is an asset to document carefully when you sell.
What we recommend in 2026
- If you are buying for holiday letting: only in tourist blocks or with a valid registration number, with a favourable community and a local manager. See our selection on Playa de Levante and Poniente.
- If you are buying for hassle-free income: a long-term let in Rincón de Loix (€16.8/m², +8.7% year on year, the fastest-rising zone) or Pueblo Levante, where purchase prices are 25–30% below the seafront.
- If you already own a holiday flat and it has become a burden: 2026 is a year of record prices in Benidorm (€3,807/m², +12.6%). We will tell you what it is worth with the online valuation and what you keep with the selling-costs calculator; non-residents should also read our guide to taxes when selling.
Related reading: the long-term letting rules for 2026, Benidorm's neighbourhoods and selling in Benidorm.
Frequently asked questions
Can I let my Benidorm flat on Airbnb?
Only if it holds a regional tourist registration number and the national short-term rental registry number. Since 2018 the Town Hall has refused the planning-compatibility report for individual flats in residential buildings, and since October 2025 it also requires a minimum of 38 m² or a parking space, an occupancy licence and express authorisation from the owners' association.
What is the fine for an illegal holiday let in Benidorm?
The Town Hall has already collected the first four fines of €50,001 each (July 2026) and has 16 more proposals in progress. The Valencian Tourism Act allows fines of up to €600,000 and closure of the accommodation for very serious infringements.
Is a holiday let or a long-term let more profitable in Benidorm?
With a licence and professional management, the holiday let usually wins by a narrow margin after costs and tax (about 4.9% versus 3.9% net of costs in our Levante example), in exchange for much more work and regulatory risk. Without a licence it does not pay: one fine cancels years of difference.
Does the tourist licence transfer when I sell the flat?
Yes. The Tourism Registry entry is tied to the property, the change of owner is notified and it is renewed every five years. An apartment with a valid licence in a tourist block sells at a premium in Benidorm.