First Occupation License (LPO): The essential requirement for holiday rentals in Andalusia

Do you own a property on the Eastern Costa del Sol and want to generate income through holiday rentals? The market in Nerja and La Axarquía is one of the most dynamic in Spain, but to participate in it, legal compliance is the first step.

Since the enforcement of Decree 28/2016 by the Junta de Andalucía, there is one document that has become the mandatory "entry fee" for any owner: the First Occupation License (LPO - Licencia de Primera Ocupación). Without it, you cannot obtain a tourism registry number, and therefore, you cannot advertise your home on platforms like Airbnb or Booking.

What exactly is the LPO and why is it mandatory?

The First Occupation License is an administrative document issued by the local town hall (Nerja, Torrox, Frigiliana, etc.) that certifies that a property complies with urban regulations and is fit for residential use.

For the tourism administration, the LPO is the guarantee that the property offered to visitors meets minimum safety and health conditions. If your property does not have an LPO, it does not legally exist for tourism purposes.

The challenge of older properties in Nerja and La Axarquía

This is the most common scenario in our area: homes built in the 70s or 80s, or rural houses in the Axarquía, which were registered at the Land Registry at the time but never processed or subsequently lost the original LPO.

Often, this technical problem is accompanied by other documentation discrepancies. For instance, it is very common for the square meters on the title deeds not to match the physical reality of the house, a topic we analyze in depth in our guide on discrepancies between the Catastro and the Land Registry.

• Urban Properties: In many cases, the town hall can issue a duplicate or a "certificate of unnecessarity" if the house has a certain age and no open urban planning infractions.
• Rural Houses (AFO): In non-urban land, the situation changes. Here, the AFO (Asimilado a Fuera de Ordenación) comes into play—a recognition that allows many rural homes to access legality and, consequently, the possibility of being rented out for tourism.

Even for properties that have been passed down from parents to children, it is essential to review this documentation. If you are in this situation, we recommend reading our article on lifetime donations vs. inheritances in Andalusia to understand how the property's legality affects its transfer.

Consequences of renting without an LPO or Tourism Registry Number (VFT)

Ignoring this requirement can ruin your investment:

1. Fines up to €150,000: Penalties from the Andalusian Tourism Inspectorate for operating "under the radar" are very severe.
2. Platform blocking: Airbnb and Booking remove listings that do not display a valid registration number.
3. Liability and maintenance: Being legal also implies fulfilling maintenance duties. If you have doubts about who is responsible for improvements, consult our guide on repairs and maintenance in rental properties.

Frequently Asked Questions about LPO

How can I find out if my house has an LPO?

You can request it at the archives of the town hall where the property is located. At Narixa Villas, as part of our property management services in Nerja, we verify the documentary status of your home before starting any rental activity.

What is the cost of obtaining the license if I don't have it?

The price depends on municipal fees and whether you need a technical project signed by an architect. It is an essential investment to market the property without legal risks.

Narixa Villas: Your partner in holiday rental management

We know that bureaucracy in Spain can be overwhelming, especially for international owners. At Narixa Villas, we don't just find the perfect guest; we ensure your investment complies with all current regulations on the Eastern Costa del Sol.

If you have doubts about the legality of your property, contact Narixa Villas today. We will analyze your case, connect you with local technicians, and manage your property so your only concern is enjoying the returns.

This article is for informational purposes and does not constitute legal advice. Urban and tourism regulations may vary by municipality and updates to the Andalusian Regional Government Decree. Always consult with a lawyer specialized in Spanish real estate law for any transaction or administrative procedure.