11-Month Rental Contracts in Spain: What Property Owners Need to Know

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 company), and eviction is extremely difficult, 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.

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 (Parte de Viajeros)	Required for every guest
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), possible 60% reduction for vivienda	Rental income (IRPF), no 60% reduction. IVA 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.

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 contracts require one month's deposit (fianza). This must be deposited with your autonomous community's deposit agency (e.g., IVHABIE in Valencia). Many landlords skip this — don't.
• 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.

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), you may qualify for a 50-60% reduction on the net rental income. This reduction does NOT apply to tourist rentals or temporada contracts.

For non-residents

EU residents pay 19% tax on net rental income (income minus deductible expenses). Non-EU residents pay 24% on gross income — a significant difference. This applies to both rental types. File quarterly using Modelo 210.

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.