Blog 19: Do you need LPO - First Occupancy License?

Have you considered investing in a home on the Costa del sol for short-term rental then you have probably heard that you must have an LPO license first occupancy and what is it then you might be wondering?

You can easily say that it is a certificate that you can move into the home. It is mainly used to be able to apply for contracts with water and electricity companies for the home. BUT since the Spanish government decided that this must be in place to get the tourist license needed to be able to rent out in a short time, ie weekly during the high season, it has become an incredibly important document in recent years.

Firstly, this license was not issued in the 70s and 80s as very many homes on the coast are built, and often these are located in really good locations and in cozy charming parts of the Costa del sol. So unfortunately a large part goes away immediately.

So therefore it is best to look for a little newer homes built from the 90s onwards to be on the safe side. BUT even new homes may sometimes have been left without this license, such as an urbanization where the developer did not complete a park that he had promised the municipality to do on the plot next door. Ie it has nothing to do with the association, but residents in that association can not get a permit for short-term rental because of it …… ..

Another small apartment, which is perfect for renting, where there is also a tourist license on the wall, did not have LPO either. How does that work? Well, the lady who applied for rent, had simply said that she had LPO (in good faith that she had it when the lawyer said that everything was legal and good with the home she bought). No shadow should fall on the lawyer as this document has nothing to do with whether the home is legal or not. BUT if you are renting out in this way, you must inform your lawyer to check if there is an LPO AND if the association has any rules regarding short-term rentals.

BUT do not give up - you can apply for LPO on the home yourself if you want by hiring an architect who measures the home, makes a floor plan and confirms the information required to get an LPO, it can be costly but from experience it is It's a little money compared to what a rental can create for income!