Rules for timeshare and rotating use of vacation properties

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1. The law regulates the right to enjoy a tourist accommodation for a fixed period each year. It can be set up as a limited real right or as a seasonal lease, and it bans using the word "propiedad" (property) to name it.
2. The regime must be formalized in a public deed and registered in the Property Registry before any rights are sold. The owner must have licenses, habitability certificates, a contract with a service company, insurance and, if the building is under construction, a bank guarantee or insurance covering advance payments.
3. Anyone selling must hand out a free information document with the nature of a binding offer, covering the price, services, shifts and the buyer's rights. The contract must include minimum disclosures and be written in the language the buyer chooses.
4. The buyer may withdraw from the contract within ten days without giving reasons or paying any costs. If information is missing from the contract or the information document, the buyer may terminate it within three months. Advance payments are banned before the withdrawal period ends, and if collected, they must be returned doubled.
5. The regime lasts between three and fifty years. If the buyer fails to pay service fees for at least one year after being asked to pay, the owner may terminate the contract, after a formal demand and depositing the proportional part of the remaining price.
6. On taxes, these rights are valued at their purchase price for the Wealth Tax, the reduced 7% VAT rate applies to the assignment of these rights, and a 4% rate applies under the Transfer Tax, so that real rights are not taxed worse than other arrangements.

Who it affects

• People who buy or consider buying a vacation timeshare right: They receive mandatory information, a ten-day withdrawal right and protection when information is missing or advances are charged.
• Owners and developers of tourist properties: They must meet strict requirements on licenses, deeds, registration, insurance and guarantees to set up the regime.
• Service companies: They must provide the regime's services, cannot be domiciled in tax havens and need a branch in Spain.
• Notaries and property registrars: They check that requirements are met before authorizing or registering the deed and contracts.
• Consumer organizations: They are entitled to receive copies of all documentation prepared by the owner or developer.

Words worth knowing

Derecho real (real right)

A right held directly over a thing, here the property itself, not just over a relationship with another person.

Desistimiento (withdrawal)

The right to back out of a contract without giving reasons or paying a penalty, within the legal deadline.

Cédula de habitabilidad (habitability certificate)

An official document certifying that a home meets minimum living conditions.

Aval bancario (bank guarantee)

A guarantee under which a bank commits to returning the money if the developer fails to perform.

Cláusula penal (penalty clause)

An agreement setting in advance the amount lost or paid if the contract is breached.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries