With the advent of AirBnB many cities in Spain have experienced a significant surge in short-term tourist rentals, particularly in historic neighbourhoods and city centres. Property owners have taken advantage of often lax regulations to earn additional income. What started as a means to earn a little cash from a spare room has blossomed into a huge business. Whether this has been to the detriment of the traditional hotel industry is debatable. More likely, it has increased the volume of tourists, specifically in urban areas.

This increase has led to concerns about housing availability for residents and the overall character of these areas. In response, in February 2024, the Junta de Andalucía transferred the authority to regulate tourist accommodations to municipal governments.
This move empowered cities like Granada to tailor regulations to their specific needs and challenges. Following this devolution of powers, the Ayuntamiento de Granada undertook studies to assess the impact of tourist rentals on the city's housing market and community dynamics.

For centuries, Andalucía has captivated the hearts of poets, writers, and painters. From the 18th through the 19th centuries, artists from across Europe journeyed south in search of something different – something wilder, more romantic, and deeply authentic. They found it here, in Andalucía’s jagged sierras, sunlit plains, olive groves and whitewashed villages.

Writers like Washington Irving found inspiration in the halls of the Alhambra. Artists like Gustave Doré and poets like Bécquer were moved by the haunting beauty of old towns, the flavour and intensity of flamenco, Garcia Lorca by the raw emotion of the Andalucian spirit. For me having spent the greater part of y life in the north of Europe it was the light that drew me in. Here, we can see so far, our boundaries are distant. On clear days in winter we can see Morocco’s Atlas Mountains from some of our properties in the Sierra Nevada. These artists weren’t just tourists – they were pilgrims of the imagination.

In the heart of Granada's historic Plaza Bib-Rambla stands a cherished attraction that has captivated both young and old for over two decades: the ecological carousel, known in Spanish as a tiovivo, the origin of which word is living man" his unique merry-go-round, powered solely by human effort, has become an integral part of the square's character.

The story of this remarkable carousel begins with José Carlos Beneroso, a native of Algeciras who came to Granada to sell hams. José Carlos's life took an unexpected turn of events when he and his wife, built a carousel for family enjoyment. What started as a personal project revealed its potential during gatherings with friends. Recognising its appeal and the joy it brought to children, the couple decided to share their creation with the broader public. Since then, José Carlos has been the driving force behind the carousel, pedalling tirelessly to bring it to life for over twenty-five years.

 Granada is a city with two UNESCO World Heritage Sites, the Alhambra and the Albayzin. It possesses unrivalled charm and is the product of a harmonious blend of cultures. An important element of the charm of the city is the tapas culture which thrives in the large number of traditional bars and taverns. Free dishes such as migas, aubergines with honey, meat in rich sauces, small fava beans with ham, and marinated dogfish are served with glasses of wine or beer. Here are five establishments where history and cuisine converge.

1. Bodegas Castañeda

We are often asked by clients considering buying a property in Granada, about the meaning of the word carmen. It is a term in common usage in the city and is used widely on our websites but its meaning is specific to Granada, a city steeped in history and culture. A carmen is an urban property, a synthesis of house, garden and vegetable plot, rooted in Granada’s past. To understand the carmen is to delve into the layers of history, language, and urban transformation that have shaped the city’s identity.

The Origin of the Word “Carmen”

The word ‘carmen’ has Arabic origins deriving from the Arabic word ‘karm’ meaning ‘vine’. Carmens have (or traditionally had) a bower providing shade to the entrance of the house. Symbolically speaking ‘karm’ means ‘orchard’. In a carmen, the concepts of orchard and garden come together, creating a particular paradise where the five senses can be enjoyed to the full: the sight and smell of trees and flowers, the taste of fruit, the feel of water running through the hands, the sound of the birds that live in the branches and the murmur of the fountains. High walls protect the interior space from view. Water is a fundamental element in a carmen. It is a symbol of life; on the one hand calm water, contained in pools, and on the other hand dynamic water running through fountains. These walled properties not only provide practical benefits, such as shade and privacy, but also embody a cultural ideal of tranquility and aesthetic refinement deeply rooted in the history of Al-Andalus, the area governed for almost seven hundred years by Moorish invaders from North Africa and which, at its height, covered most of the Iberian peninsula. Granada was the last bastion of Islamic rule.

The Essence of the Carmen

What is an AFO and When is it Required?

The AFO (Asimilado Fuera de Ordenación) is a legal status in Spain, particularly in Andalusia, for buildings that have been constructed without a permit or in an area where construction is not allowed but which are too old to face demolition under urban planning laws. The AFO designation provides a way to regularize such properties, allowing their owners to access essential services like water and electricity while ensuring that the buildings meet minimum safety and habitability standards.

Below is an overview of key aspects of the AFO process based on frequently asked questions:

1. When Does the AFO Status Apply?

The AFO status applies to any building classified as irregular within Andalusia. These can be situated on urban, developable, or non-developable land and may include isolated buildings or collections of buildings. In reality, AFOs mostly affect country properties in Andalucia whose title deeds do not reflect reality. To be eligible for an AFO, the building:

• must have been completed more than 6 years ago, which should be verified by an architect.
•  cannot be located on specially protected land, within coastal influence zones, or in areas of flood risk.

2. What Is A Completed Building?

A building is considered completed when no further work is required for it to serve its intended purpose, other than minimal maintenance or safety repairs. In other words, a house ready for occupation.

Grants for Solar Energy Installation in Andalucia

Andalucia, with abundant sunshine, stands at the forefront of Spain’s transition towards a greener and more sustainable future. As part of a national strategy to reduce reliance on fossil fuels and curb greenhouse gas emissions, the Junta de Andalucia (our regional government) has launched an ambitious programme to incentivise the adoption of solar energy. This initiative represents both a significant step towards environmental responsibility and economic efficiency, as it offers residents and businesses a way to lower energy costs while simultaneously contributing to a greener future.

Embracing Solar Energy

With an average of over 2,800 hours of sunshine per year, Andalucia is one of the most promising regions in Europe for solar energy. This abundant natural resource makes solar not only an environmentally responsible choice but also a financially advantageous one. The Spanish government has committed to a goal of carbon neutrality by 2050 and, here in Andalucia, blessed with 300 to 320 days of sunshine annually, we are well-positioned to play a leading role in achieving this vision.

Recognising the region’s potential for power generation using the sun, the Junta de Andalucía has introduced a series of financial incentives aimed at accelerating the adoption of solar energy. These grants provide substantial financial support, easing the transition for individuals and businesses seeking to install photovoltaic systems. This new wave of funding builds upon previous initiatives, reinforcing the government’s commitment to sustainability and energy independence.

In 2024, Granada proudly marks two significant milestones: the 40th anniversary of the Alhambra and Generalife being declared a UNESCO World Heritage Site in 1984, and the 30th anniversary of the Albaicín’s inclusion in this prestigious list in 1994. These dual anniversaries not only reaffirm Granada’s cultural and historical importance but also provide an opportunity to reflect on the city’s extraordinary legacy.

As part of the celebrations, a unique initiative has been launched: the "40-30 Commemorative Route", a curated journey through fourteen monuments that encapsulate the essence of these World Heritage sites. This route offers an unparalleled chance to explore Granada’s history, art, and architecture, guided by expert historians and enriched by the stories that define this city.

Bizum: Revolutionizing Mobile Payments in Spain

Bizum is a Spanish mobile payment platform that has revolutionised the way individuals and businesses handle transactions. Launched in 2016, Bizum is integrated with the banking apps of participating financial institutions, offering a convenient and widely-used service for peer-to-peer (P2P) payments and business transactions. It facilitates quick and easy money transfers, making it an essential tool for splitting bills, paying for services, and online shopping.

We are often asked when taking on a property, how long it is likely to take to achieve a sale. The short answer is, for the very individual properties we sell,  it is impossible to tell. We recently sold a house twenty hours after collecting the keys. Other properties have lingered years on the market.

What is the reason for this disparity? A series of factors influence the time it takes to sell. Some of these are under the control of the vendor, some under our control as agents and some are external factors which neither of us can affect.

In recent years, co-living has emerged as a popular trend in Spain, offering a fresh alternative to traditional housing models. Rooted in the idea of shared spaces and communal living, co-living brings together people from diverse backgrounds to live, work, and socialise in a supportive environment. While it began in urban centres like Madrid and Barcelona, co-living has now spread to rural areas, offering a flexible lifestyle for individuals seeking connection and affordability. But what is driving this rise in co-living in Spain, and who is it really for?

What is Co-living?

Co-living is a shared housing concept where residents, often strangers, live together in a communal setting, sharing common spaces such as kitchens, living rooms, and workspaces while having private bedrooms. This model promotes a sense of community, collaboration, and shared responsibility, appealing to a generation looking for more sustainable and cost-effective living options.

Why Is Spain Cancelling The Golden Visa?

Back in April, the Spanish government announced the cancellation of its Golden Visa programme due to growing concerns about its impact on the housing market and social inequality. Just to recap, the Golden Visa has offered residency to non-EU nationals (UK, USA, Canada, Japan etc.) who invest at least €500,000 in Spanish real estate. However, it has also sparked controversy for several reasons. Let’s look at why the government has taken this step.

1. Rising Property Prices and Gentrification

Critics argue that the Golden Visa programme has contributed to rising property prices in cities like Madrid, Barcelona, and popular coastal areas, making it difficult for local residents to afford housing. With foreign investors purchasing expensive properties, often for speculative purposes or as second homes, the demand has driven up prices in both the rental and purchase markets, leading to gentrification and pricing local residents out of the market. There is some justification for this argument in the cities but not in the countryside where the market for properties in excess of €500.000 is relatively small in number. And the countryside needs investment from non-EU nationals as there is still a drift away from rural zones amongst the Spanish population, leading to depopulation in some areas.

2. Housing Affordability

Growth and Opportunities in Rural Areas  

The Spanish real estate market in 2025 is set to continue its upward trajectory, driven by increasing demand, favorable economic conditions, and evolving buyer preferences. While urban centers like Madrid and Barcelona will remain key players, rural areas are emerging as vibrant opportunities for buyers and investors alike. With second-hand properties, lifestyle-driven choices, are driving demand in Spain’s inland areas. 

Positive Outlook  

The market is expected to remain dynamic in 2025, with several factors driving increased activity. The continuation of interest rate cuts, initiated in 2024, is a major incentive. The Euribor, the benchmark for most Spanish mortgages, has already dropped by over 1.2% in the past year, and further decreases are anticipated. This trend is opening the door for buyers waiting for more favorable financing conditions. 

Additionally, enhanced savings among households, a stable job market, and increasingly competitive mortgage products from banks are all factors fostering confidence in property purchases. This combination of financial factors is not only revitalising urban markets but also bringing rural properties into focus as an attractive, affordable option, especially for people who work remotely.. 

Nestled in the heart of Andalucia, Granada has long been a melting pot of cultures. Among its many treasures, the art of creating ceramics stands out as a living testament to the city's rich heritage. Two names stand out as proponents of the ceramicist's art in the city: Fajalauza and Al-Yarrar.

Fajalauza

Fajalauza pottery, named after the historic Fajalauza Gate in the Albayzín district, dates back to the 16th century and represents the enduring artistry of Granada ceramics. Emerging during a period of cultural synthesis following the Reconquista, Fajalauza pottery embodies the fusion of Moorish and Spanish influences. Its distinctive motifs, often featuring natural elements such as birds, flowers, and vines, are painted by hand with a characteristic palette of cobalt blue and green on a white background.

Culturally, Spain is a country of contradictions. There is an element of machismo left over from the days of the dictatorship that ended almost fifty years ago but the country is also one of Europe's most liberal societies. Same-sex marriages were legalised tweny yars ago, there is a high level of involvement of women in senior political office and Spain is only the fourth country in Europe to allow euthanasia. Under strict conditions, obviously.

Euthanasia in the European Context

Spain's legislation aligns it with other progressive European nations but also highlights significant contrasts across the continent.

• The Netherlands, Belgium, and Luxembourg: Pioneers in euthanasia legislation, legalizing it in the early 2000s. Their laws allow euthanasia for adults and, under strict conditions, for minors.

There has been considerable controversy in Spain in recent times with regard to tourist rentals in urban areas. As well as the popularity of “City Breaks” made possible by cheap flights, the rise of Airbnb creating a market for inexpensive rooms, apartments and houses, often in residential areas, has encouraged such travel and created a boom in urban tourism.

Whilst this has undoubted economic benefits, it is often not local businesses but international chains that benefit most. Increased tourist numbers also lead to overcrowding on public services and in the most popular streets, a change in the nature of shops with a tendency away from the need of locals to catering for tourists and, perhaps most significant a steep rise in rents, forcing residents further away from the centre. There are also environmental concerns, both with increased waste, higher carbon emissions and greater pressure on water and sewage resources.

Spain's Beckham Law, officially known as the "Special Expatriate Tax Regime," was introduced in 2005. Named after footballer David Beckham, who was one of the first high-profile individuals to benefit from it, the law was designed to attract skilled foreign workers and high-income professionals to Spain. It offers significant tax advantages for qualifying individuals. Here’s an explanation of the benefits and eligibility:

Overview of the Beckham Law

Renting out properties as tourist houses or apartments (Viviendas de Uso Turístico, or VUTs) in Spain can be lucrative, but there can be significant legal and regulatory challenges. Individual investors can find themselves entangled in complex legal issues after deciding to rent out their property. While the prospect of additional income is attractive, the reality may involve navigating a maze of regulations and even potential conflicts between different authorities.

Complex Regulatory Landscape

Spain's regulatory environment is multifaceted, with three levels of government—national, regional (Autonomous Communities), and local—each playing a role in tourism and land use regulations.

Clients sometimes ask us whether they should raise money to finance a property purchase in their home country where they are familiar with the process or here in Spain. Before I briefly look at possible advantages or disadvantages, I want to stress that it is unlikely that you will be able to use the property you are buying as security. A lender based outside Spain is unlikely to want to have the asset that secures the loan in another country. You will most likely have to offer security in the country where the lender is based.

Benefits

Potentially Lower Interest Rates

Wealth Tax (Impuesto sobre el Patrimonio (IP)) is a national tax in Spain which has had an up-and-down ride in recent years. It is principally regulated by Law 19/1991. However, its collection is 100% devolved to the Autonomous Communities, which can exercise their own regulatory powers according to Law 22/2009. In Andalusia, control over the IP has been subject to a number of legislative changes but fundamentally, Andalucia has chosen to avoid collecting the tax as an incentive to high net worth individuals to base themselves in the autonomous region rather than in, for example, the capital Madrid.

The obligation to declare the IP was abolished in 2008, but temporarily reinstated in 2011 by Royal Decree-Law 13/2011. Since then, the obligation to file a tax return has been extended by various laws until 2021, when it was established that it would remain in force indefinitely.