As an owner you can go for holiday letting or long-term letting. They differ in the rules that apply, what they earn and what they demand of you.
Holiday letting #
Short periods, usually by the night or the week, often through Airbnb or Booking.com. Short stays, changing guests.
What works. The income per let period can be considerably higher. You keep flexibility for your own use. And demand in tourist areas is strong.
What it costs you. A licence is compulsory in most regions. Extra rules apply on safety and registration. And the changeovers and communication mean real work.
A property in a coastal town let to holidaymakers for part of the year can produce a higher annual yield, but it needs active management.
Long-term letting #
A longer period, usually six months or more. One tenant, longer contracts, fewer changeovers.
What works. Stable income. Much less day-to-day management. And no tourist licence required.
What it costs you. Lower income per month. Much less flexibility for your own use. And Spanish tenant protection makes ending a tenancy harder than UK landlords are used to, so choosing the tenant matters more than it does on a six-month AST.
The main differences #
Holiday letting can earn more, but it fluctuates. Long-term letting gives certainty. Holiday letting carries heavier regulation and takes more of your time.
A note on your own use #
If you plan to use the property yourself, the 90/180 rule limits you to 90 days in any rolling 180-day period without a visa. That sits awkwardly with long-term letting, which effectively rules out your own use entirely, and rather well with holiday letting, where you can block out the weeks you want.
For most British buyers who want both a bolthole and an income, that points towards holiday letting.
Practical points #
Research the local market and the local rules, and look hard at where your property actually sits. Factor in the tax differences. Get the contracts and record keeping right. And consider a combination: long-term through the winter, holiday letting through the summer, is a pattern that works well in some regions.
In short #
The two need different approaches. The difference is in the income, the certainty and the amount of work. Decide what you want from the property first and the letting form follows.
Last reviewed 2026-08-24
Want this checked against your own situation?
A 20 minute call with a specialist in the region you are looking at, at no cost to you.