Vacation Rental in Galicia: Regulation, Licenses and Profitability 2025
Legal framework for vacation rentals in Galicia
Vacation rentals in Galicia are regulated by Decree 12/2017 of the Xunta de Galicia and the Urban Leases Act (LAU). In 2025, all tourist accommodation must be registered in the Xunta's Tourism Business and Activities Register. Many coastal municipalities have also approved special plans limiting new licenses.
The Costa da Morte, unlike Barcelona or San Sebastián, still allows new tourist licenses in most municipalities, though Cee and Corcubión are studying regulation measures.
Types of tourist licenses
| Type | Description | Requirements | Duration |
|---|---|---|---|
| Tourist housing (VUT) | Entire property rented by days/weeks | Xunta registration, habitability certificate, liability insurance | Indefinite while compliant |
| Tourist room | Rooms within owner's residence | Xunta registration, private/shared bathroom | Indefinite |
| Rural tourism house | Entire house in rural setting | Xunta registration, accessibility certificate | Indefinite |
| Extra-hotel tourist accommodation | Apartments with services | Activity license, tourism registration | Renewable |
To obtain a VUT license you need:
- Habitability certificate or first occupation license
- Energy performance certificate
- Public liability insurance (minimum €300,000)
- Xunta registration form
- House rules and contract conditions
5. Floor plan with surface areas
High-demand areas on the Costa da Morte
| Area | Average annual occupancy | Price/night | RevPAR | Peak season | Competition |
|---|---|---|---|---|---|
| Fisterra | 72% | €85-130 | €68 | Jun-Sep | High (45 properties) |
| Corcubión | 65% | €70-110 | €52 | Jun-Sep | Low-Medium (12) |
| Cee | 60% | €55-90 | €44 | Jun-Sep | Medium (20) |
| Camarinas | 68% | €60-100 | €50 | Jun-Oct | Medium (18) |
| Muxía | 62% | €65-105 | €50 | Jun-Sep | Medium (15) |
| Malpica | 58% | €50-85 | €40 | Jul-Aug | Low (8) |
| Ribeira | 55% | €45-80 | €35 | Jul-Aug | Low (10) |
Expected profitability by investment type
| Property type | Purchase price | Gross annual income | Estimated expenses | Net yield |
|---|---|---|---|---|
| 1-2 bed apartment in Cee | €80,000-120,000 | €10,000-15,000 | €3,500-5,000 | 6-8% |
| 3-bed house in Corcubión | €120,000-180,000 | €14,000-22,000 | €5,000-7,000 | 5-8% |
| 4+ bed house with views, Fisterra | €180,000-300,000 | €22,000-35,000 | €7,000-10,000 | 5-9% |
| Renovated rural house interior | €60,000-100,000 | €8,000-14,000 | €3,000-5,000 | 6-9% |
| Penthouse with sea view, A Coruña | €200,000-350,000 | €20,000-30,000 | €7,000-10,000 | 4-7% |
Expenses include: IBI (€400-1,200/year), community fees (€50-150/month), insurance (€300-600/year), cleaning (€50-80/turnover), utilities (€1,200-2,000/year), platform commission (15-20%), and maintenance.
Taxation of vacation rentals
| Concept | Detail |
|---|---|
| Taxable income | Total billed (including forfeited deposits) |
| Deductible expenses | IBI, insurance, community, repairs, utilities, depreciation (3%), cleaning, platform commissions, mortgage interest |
| Rental reduction | 60% long-term reduction does NOT apply |
| IRPF rate | 19-45% depending on tax base |
| VAT | Exempt for residential rental (not for additional services) |
| Filing requirement | Form 100 (annual IRPF) + quarterly estimates if >€1,000/year |
For non-residents: withholding tax of 19% for EU/EEA residents and 24% for others, applied to gross income (no deductions).
Platforms and direct bookings
- Airbnb: Highest booking volume, 3% host + 14% guest commission. Best for international market.
- Booking.com: Excellent for short stays, 15-20% commission. High European visibility.
- Vrbo: Better for families and entire homes, 5-8% commission. Strong in Anglo-Saxon market.
- Direct channel: Own website + Instagram. No commissions. Ideal for repeat guests. 20-30% higher margin.
Optimal strategy: combine 2-3 platforms with direct channel. Most owners report 60-70% of bookings from Booking in Galicia.
Tips to maximize profitability
- Professional photography: Invest €200-400. Increases bookings 30-50%.
- Dynamic pricing: Use PriceLabs or Beyond Pricing. Adjust by demand, events and competition.
- Minimum 2 nights: Avoid 1-night stays that increase cleaning costs. In peak season, 5-7 night minimum.
- Equipped kitchen: Guests value complete kitchens. Include Nespresso, oven, microwave.
- High-speed Wi-Fi: Essential. Minimum 100 Mbps.
- Flexible check-in: Offer lockbox. Avoid in-person meetings.
- Fast response: Reply within 1 hour. Platforms reward speed.
- Reviews: Target 4.8+ on Booking, 4.9+ on Airbnb.
Risks and considerations
- Seasonality: Peak season June-September represents 60-70% of annual income.
- Growing regulation: New municipal restrictions possible.
- Competition: Tourist properties grew 35% in 3 years on the Costa da Morte.
- Wear and tear: Budget €2,000-4,000/year for maintenance.
- Security: Install liability insurance and safe for valuables.
Contact Cristina Casas Galiza for properties with high vacation rental potential on the Costa da Morte.
Written by Cristina Vázquez
Real estate agent in Corcubión with over 10 years of experience in the Costa da Morte market.
Contact Cristina →
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Cee
Dynamic urban centre with all amenities, spectacular estuary and urban beaches.
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