If you own property in Spain and you've talked to other owners about renting it out, someone has inevitably mentioned the 11-month contract. It's one of the most common — and most misunderstood — rental strategies in Spain.
This guide explains what 11-month contracts are, why they exist, how they compare to short-term tourist rentals, and which approach makes more sense for your specific situation.
What Is an 11-Month Contract?
An 11-month rental contract (contrato de temporada) is a medium-term rental agreement that typically runs for — you guessed it — 11 months. It falls under Spain's seasonal or temporary rental regulations, which are different from long-term residential leases.
Why specifically 11 months?
This is the key question, and the answer is legal. Spain's main rental law — the Ley de Arrendamientos Urbanos (LAU) — distinguishes between two types of rentals:
- Vivienda habitual (primary residence): If a tenant rents your property as their main home, they get heavy legal protections under the LAU. The contract automatically extends to 5 years (or 7 if the landlord is a legal entity) — and after that, a further 3-year tacit extension (prórroga tácita) kicks in unless either party gives the required notice. Eviction is extremely slow, even for non-payment.
- Temporada (seasonal/temporary): If the rental is for a specific temporary purpose — not as a primary residence — the LAU protections don't apply. The contract ends when agreed, no automatic extensions.
The 11-month contract is designed to clearly fall under the temporada category. By setting it at less than 12 months, it signals that this is not intended as a permanent home.
Important legal nuance: Simply writing "11 months" on a contract doesn't automatically make it a temporada contract. What matters is the purpose of the rental, not just the duration. If the tenant is clearly using it as their primary residence, a court may reclassify the contract as vivienda habitual regardless of what the contract says. Always consult a lawyer for your specific situation.
11-Month Contracts vs. Tourist Rentals: The Full Comparison
| Factor | 11-Month Contract | Tourist Rental (Short-term) |
|---|---|---|
| Duration | 11 months (typically) | Days to weeks per booking |
| License required | No tourist license needed | Tourist license (licencia turística) mandatory |
| Guest registration | Not required — RD 933/2021 only covers hospedaje stays under ~30 days | Required for every guest under RD 933/2021 (live since Dec 2024 for tourist lets) |
| Furnishing | Can be furnished or unfurnished | Must be fully furnished and equipped |
| Management effort | Minimal — one tenant, one contract | High — turnovers, cleaning, communication, maintenance |
| Income stability | Predictable monthly rent | Seasonal — high in summer, low in winter |
| Earning potential | Lower per month, but consistent | Higher per night, but variable |
| Wear and tear | One tenant, normal use | Multiple guests, higher turnover wear |
| Tax treatment | Rental income (IRPF); IRPF vivienda-habitual reduction (50% base, up to 90% in some cases) does not apply to temporada | Rental income (IRPF), no IRPF reduction. IVA at 10% may apply if hotel-like services. |
| Personal use | Property occupied 11 months — limited personal use | Block dates for personal use anytime |
The Money Question: Which Earns More?
Let's look at a realistic example. A two-bedroom apartment on the Costa Blanca:
11-month contract
- Monthly rent: €650
- Annual income: €7,150 (11 months)
- Expenses: minimal (tenant pays utilities, basic maintenance)
- Management time: near zero
- Net income: approximately €6,500–7,000
Tourist rental
- Average nightly rate: €85
- Occupancy: 65% (realistic for Costa Blanca, including dead months)
- Gross income: approximately €20,100
- Expenses: cleaning (€50/turnover × ~50 turnovers = €2,500), utilities (€2,400), platform fees (€3,000), supplies and maintenance (€1,200), management or your time
- Net income: approximately €11,000–13,000
On paper, tourist rental earns significantly more — roughly €4,000–6,000 more per year for this example. But there's a massive asterisk: your time.
If you're managing the tourist rental yourself, you're spending 10–20 hours per week on guest communication, turnovers, problem-solving, and coordination. That's essentially a part-time job. If you value your time at even €15/hour, that's €7,800–15,600 per year in labor.
If you hire a property manager (typically 15–25% of revenue), that eats €3,000–5,000 of your margin.
The real calculation: Tourist rentals earn more — but only if you either manage them efficiently yourself or if the margin after management fees still exceeds what an 11-month contract would pay. For many properties, the difference is smaller than you'd think once you account for all costs.
When an 11-Month Contract Makes More Sense
- You live abroad and can't manage turnovers and guest communication remotely (or don't want to)
- You want zero hassle — one tenant, one deposit, predictable income, no middle-of-the-night messages
- Your property is in a low-tourism area where occupancy rates for short-term rentals would be poor
- You can't get a tourist license — some municipalities have stopped issuing them or have strict limits
- You want to avoid the bureaucracy — no Parte de Viajeros, no tourist tax, no platform management
- Your community prohibits tourist rentals — many urbanizaciones and apartment buildings have voted to ban short-term lets
When Tourist Rentals Make More Sense
- Your property is in a prime tourist location — beachfront, old town, near major attractions
- You enjoy hosting and don't mind the communication workload (or you automate it)
- You want to use the property yourself — block your own holiday weeks and rent the rest
- High season occupancy is strong — in areas like the Costa Blanca, summer months can cover a large portion of annual income
- You have the tools to manage it efficiently — a good PMS, automated guest communication, reliable cleaning team
The Hybrid Approach
Some owners combine both strategies: they rent to a long-term tenant during the low season (October–April) and switch to tourist rental during high season (May–September). This maximizes income while reducing the winter vacancy problem that plagues many tourist rentals.
The catch: this requires careful contract structuring and isn't possible in all regions. Check your local regulations and consult a lawyer before attempting this.
Legal Pitfalls to Watch Out For
- The "fake temporada" trap. If your 11-month tenant is clearly living there permanently (registered at the address, receiving mail, working locally), a court can reclassify the contract. The 11-month duration alone doesn't protect you.
- Automatic renewal. If the tenant stays past the contract end date and you don't actively reclaim the property, the contract may be considered tacitly renewed — potentially as a vivienda habitual.
- Deposit requirements. Seasonal (temporada) contracts fall under LAU Article 36.1 as uso distinto del de vivienda and therefore require two months' rent as fianza — not one (one month only applies to vivienda habitual). The deposit must be lodged with your autonomous community's housing agency (in the Comunidad Valenciana, via the Generalitat using Modelo 805; Catalonia uses INCASÒL; each region differs). Many landlords skip this step — don't, as failure can void protections and trigger penalties.
- Eviction realities. Even with a temporada contract, evicting a non-paying tenant in Spain takes months. The legal system is slow. Screen your tenants carefully.
New regulations in 2025–2026: Spain has been tightening rental regulations. Several autonomous communities have introduced new rules affecting both tourist and medium-term rentals. Always verify current regulations for your specific region before signing any contract.
Tax Implications
For Spanish tax residents
Rental income from both 11-month and tourist rentals is declared on your annual IRPF. For long-term residential rentals (vivienda habitual) signed from 2024 onwards, the Ley 12/2023 ("Ley por el derecho a la vivienda") replaced the old flat 60% reduction with a tiered system on net rental income:
- 50% — default reduction for any vivienda habitual contract.
- 60% — if the dwelling was rehabilitated within the two years before the contract.
- 70% — first letting to a tenant aged 18–35 in a declared zona de mercado residencial tensionado, or to public housing programs.
- 90% — in a declared zona tensionada with a rent reduction of at least 5% versus the previous contract.
None of these reductions apply to tourist rentals or to temporada (seasonal) contracts — only to true vivienda habitual lets.
For non-residents
EU/EEA residents pay 19% tax on net rental income (income minus deductible expenses). Non-EU residents pay 24% on gross income with no expense deductions — a significant difference. This applies to both rental types. Since the 2024 reform (Order HAC/56/2024, in force from 2024 tax year), Modelo 210 for rental income is filed annually — within the first 20 days of January for the prior calendar year — not quarterly. Quarterly Modelo 210 still applies for some other non-resident income types.
IVA (VAT)
Standard property rentals (including 11-month contracts) are exempt from IVA. Tourist rentals are also generally exempt unless you provide hotel-like services (daily cleaning, meals, reception). If you do, IVA at 10% applies.
Making Your Decision
There's no universally correct answer. The right choice depends on your property location, your personal involvement level, your financial goals, and your risk tolerance.
Ask yourself honestly:
- Am I willing to actively manage guest communication, turnovers, and maintenance? (Or pay someone to do it?)
- Is my property in an area with strong tourist demand year-round, or mainly in summer?
- Do I want to use the property for personal holidays?
- Can I get (or do I already have) a tourist license?
- How much do I value predictability vs. maximum income?
If you go the tourist rental route, the biggest factor in your success won't be the property itself — it'll be how well you handle the guest experience. Good communication, instant answers, and helpful local tips are what separate profitable 5-star rentals from struggling ones.
The best property investment strategy isn't the one that earns the most on paper — it's the one you can sustain without burning out. Choose the model that fits your life, not just your spreadsheet.
Spain rental, whichever route you take.
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