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Benidorm Cracks Down on Illegal Holiday Lets as First Fines Top €100,000

 

Benidorm / 16 July 2026

 

Benidorm City Council has issued its first fines against owners of illegal tourist accommodation, collecting more than €100,000 as the Costa Blanca resort steps up its campaign to tackle unlicensed holiday rentals.

 

The move comes one year after Benidorm was granted new powers to inspect and sanction tourist accommodation, making it one of the first municipalities in the Valencian Community to actively enforce the strengthened regional legislation aimed at regulating the booming short-term rental market.

 

The first four sanctions have now been completed, with each case originally carrying a fine of €50,001. However, the owners received a 50% reduction after accepting liability and making prompt payment, resulting in the council recovering more than €100,000 in total.

 

Nearly 200 Properties Investigated

According to Benidorm's Councillor for Commerce, Javi Jordá, the council has received 70 complaints concerning suspected illegal holiday lets since taking over enforcement responsibilities in mid-2025.

 

Those complaints have led inspectors to investigate 196 properties across the resort.

 

Of those:

• 107 properties were found to have the correct Valencian Tourist Use Housing (VUT) registration and were operating legally.
• 73 properties remain under investigation.
• 16 properties have been proposed for sanctions for operating without the required licences.
• Four cases have already resulted in successful enforcement action and payment of fines.

 

Tougher Rules for Holiday Rentals

The crackdown follows changes introduced under Valencian Decree Law 9/2024, which significantly tightened regulations governing tourist accommodation across the region.

 

The legislation gives local councils greater authority to inspect, investigate and issue fines against illegal holiday rentals, while requiring tourist accommodation to meet stricter registration, planning and operational requirements. It also strengthens enforcement against properties marketed without the necessary authorisation.

 

Benidorm, one of Spain's busiest holiday destinations, has welcomed the additional powers as authorities seek to ensure all accommodation providers operate on a level playing field.

 

Protecting Residents and Legitimate Businesses

Councillor Jordá said each investigation begins following complaints from residents or communities of property owners, with Benidorm Local Police carrying out inspections before the Department of Commerce prepares the sanctioning file.

 

He stressed that every case follows a detailed legal process to ensure due process, meaning investigations can take several months before fines are imposed.

 

The City Council also submits quarterly reports to the Valencian Government detailing inspection activity and enforcement outcomes.

 

Officials believe the measures will help reduce unfair competition, improve standards within the holiday rental sector and address growing concerns over illegal tourist accommodation affecting residential communities.

 

Growing Focus Across Spain

The action in Benidorm reflects a wider trend across Spain, where regional and local authorities are introducing stricter controls on short-term holiday rentals in response to housing shortages, overtourism and concerns from residents.

 

The Costa Blanca remains one of Europe's most popular holiday destinations, attracting millions of visitors each year. Local authorities say ensuring tourist accommodation complies with licensing requirements is essential to maintaining the resort's reputation while protecting both visitors and permanent residents.

 

With a further 12 enforcement cases currently progressing through the administrative system, Benidorm's crackdown on illegal holiday lets is expected to continue throughout the remainder of 2026.