Sandín Abogados · 2026
Flex living has gone from a niche trend to one of the fastest-growing real estate business models in Spain. In 2026, hundreds of operators, from startups to institutional funds, have invested in this format. And yet, the number of projects launched without a clear understanding of the legal framework remains alarming.
The reason is simple: flex living operates in an area where tenancy regulations, urban planning law, business activity regulations, and taxation intersect. There is no single law that defines it, nor a specific legal framework that comprehensively regulates it. This doesn’t mean there’s a legal vacuum; it means that multiple regulations apply simultaneously and, sometimes, contradict each other.
This guide is aimed at operators, investors, and developers who are considering launching or scaling a flex living project in Spain, especially in Barcelona and Catalonia. It’s not a theoretical guide: it’s an analysis of the regulations that actually determine whether your model is legal, what licenses you need, and how to structure contracts and transactions to operate with legal certainty.
No, although they are often used interchangeably in the market. The differences matter, and not just conceptually: they have direct legal implications.
Flex living is the broadest model. It refers to flexible housing solutions, generally for stays of one week to several months, offering fully equipped apartments or rooms with included services: regular cleaning, laundry, access to facilities specific to the model (gym, study room, cinema room), Wi-Fi, etc. The contract is usually structured as a seasonal lease or a service agreement, depending on the provider.
Coliving is a variant of flex living geared towards cohabitation. It’s important not to confuse it with conventional room rentals: in the latter, the tenant has a furnished room, shared use of the kitchen and living room, and utilities included (Wi-Fi, water, electricity), but there are no additional services. Coliving adds a layer of services specific to the model (laundry, regular cleaning of the unit, facilities such as a gym, study room, or cinema room) and the communal component is a deliberate part of the product: the operator designs spaces and proposes activities aimed at fostering interaction among residents. Legally, coliving usually operates through the rental of individual rooms in a shared building, which aligns it with the models regulated by the recent Catalan Law 11/2025 on room rentals.
Temporary rental is the oldest of the three legal categories. Article 3.2 of the Urban Leases Law (LAU) regulates seasonal rentals as those involving a dwelling for a use other than satisfying the permanent need for housing. It doesn’t have to be seasonal: it can be for studies, work, medical treatment, or any other circumstance that justifies temporary stays. This is the legal basis on which most flex living in Spain is built.
To delve deeper into these differences between flex living, coliving, and short-term rentals, a legal perspective is essential before choosing a business model.
In 2026, the flex living operator sector is heterogeneous. Investment funds that have converted entire buildings in Madrid and Barcelona coexist with entrepreneurs who manage two or three apartments and market them through digital platforms. There are also traditional developers adding flex living units to their developments as a revenue diversification strategy, and private owners who outsource management to specialized operators through management contracts.
What they all share is the need to resolve the same legal questions: What type of contract should I use? Do I need a business license? What about VAT? Can I use this property for this activity according to its urban planning classification?
Yes, flex living is legal in Spain. But the complete answer is more nuanced: its legality depends on how the model is structured, which local regulations apply, and whether the operator has obtained the necessary permits.
Spain doesn’t have a specific law for flex living, just as it doesn’t have a law for coworking. What exists is a set of regulations at the national, regional, and municipal levels, the combined application of which determines whether a particular project can operate legally. The most frequent mistake is to analyze only one of these levels (usually the Urban Leases Act, or LAU) and ignore the others.
At Sandín Abogados, we have analyzed numerous flex living projects, and the problem is recurring: the operator has a very clear business model, but the legal framework is opaque. The consequence is usually one of these three things: operating without the correct license, using the wrong type of contract, or setting up the business in a building with an incompatible zoning designation.
The LAU (Law 29/1994, of November 24, on Urban Leases) distinguishes between two main types of leases:
Most flex living arrangements are covered by Article 3.2 of the Urban Leases Law (LAU). The seasonal lease agreement is the standard legal instrument. For it to be valid and not reclassified as a standard residential lease, the reason for its temporary nature must be justified, whether for work, training, medical reasons, or other similar circumstances, and the duration cannot be indefinite.
This is where many operators make mistakes: they do not adequately document the reason for the temporary nature of the lease, or they use standard contracts downloaded from the internet that do not reflect the specificities of the flex living model. If the contract is challenged or inspected, poor drafting can lead to the lease being reclassified as a primary residence, with all the legal and tax consequences that this entails. Specialized legal assistance is crucial for properly structuring these management contracts for flex living operators.
The Law on the Right to Housing (Law 12/2023) and its implications
Law 12/2023, of May 24, on the Right to Housing, does not directly regulate flex living. However, its effects on the rental market have significant implications for operators.
The law introduces the concept of stressed/high-pressure residential market areas, where rental prices have risen above certain thresholds or where residents allocate a high percentage of their income to housing. In these areas, the regulations for landlords of primary residences are considerably tightened.
For flex living, the key lies in the classification of the lease. If the model is seasonal (Art. 3.2 LAU), in principle, it is not affected by the limitations of strained areas because it is not considered a residential lease. However, if the contracts are long-term or if the activity is questioned by the authorities, the operator could find themselves subject to the more restrictive regulations.
Furthermore, Law 12/2023 modified the regulations governing large property owners. Generally, a large property owner is defined as someone who owns ten or more residential properties or whose total residential built area exceeds 1,500 m². The five-property threshold only applies in areas of high housing market pressure (ZMRT) and only when established by the corresponding regional regulations (currently Catalonia, the Basque Country, and Navarre), not automatically or nationwide. Flex living operators managing a significant number of units should analyze whether they fall under this regime and the associated additional obligations.
The regulatory complexity of flex living is multiplied in Catalonia, where the Generalitat (Catalan government) and the Barcelona City Council have approved specific regulations that superimpose a third and fourth level of requirements on top of the state and general frameworks.
Before Law 11/2025, the regulation that provided a legal framework for coliving in Catalonia was Decree Law 50/2020, of December 9, on urgent measures to stimulate the development of officially protected housing and new rental accommodation options.
This regulation is the essential starting point for any legal analysis of coliving in Catalonia, because it resolved the main uncertainty that had previously hampered these projects: urban planning classification. Decree Law 50/2020 defines accommodations with shared spaces (the official term for coliving in Catalan regulations) as a type of residential use, not a tertiary lodging use. This distinction has significant practical consequences: coliving projects can be established on land zoned for residential use without requiring a change of use, provided they meet the specific requirements of the regulation.
The most relevant aspects of Decree Law 50/2020 for flex living and coliving operators are:
Definition: Accommodations with shared spaces are dwellings with less private space than the standard but equipped with complementary common spaces, shared areas that complement the private space, beyond the common elements required by law.
Minimum Areas (on a transitional basis, until habitability regulations are adapted to Decree Law 50/2020):
Number of private rooms: Decree Law 50/2020 does not establish a maximum number of rooms per project. The determination of the number of units is primarily based on business profitability criteria, but is subject to the aforementioned minimum surface areas and current habitability regulations, specifically Decree 141/2012, which regulates the habitability conditions of dwellings in Catalonia, regarding the conditions and surface areas that each accommodation must meet.
Horizontal division prohibited: Buildings intended entirely for accommodations with shared spaces cannot be divided horizontally. If only part of the building is designated for this use, it must be configured as a single, separate, private unit.
Certificate of occupancy: Mandatory, since these accommodations are considered dwellings for all legal purposes.
Residential density: Planning modifications to implement these accommodations do not count as an increase in residential density, provided that the number of accommodations does not exceed the number resulting from applying the 70 m² ceiling height module.
Decree Law 50/2020 was ratified by the Parliament of Catalonia and remains in force. Law 11/2025, which is analyzed below, complements this framework for room rental projects, but Decree Law 50/2020 remains the reference standard for new or converted coliving in Catalonia.
Law 11/2025, approved by the Parliament of Catalonia, establishes for the first time a specific regime for room rentals in Catalonia. It is the most relevant legislation passed in recent years for coliving.
Its main effects on coliving and flex living models by room are:
Contractual and Registration Regime: Law 11/2025 does not introduce the obligation to obtain a license or permit for room rentals or flex living. Its effects on administrative compliance are contractual and registration-related: it does not require prior administrative authorization simply for renting rooms, but it does regulate the conditions that the contract must meet, establishes minimum terms, and requires its registration in the corresponding registry.
Minimum Property Requirements: The law establishes specific habitability requirements for each rented room: minimum size, ventilation, access to a bathroom, etc. Not all properties designed for informal coliving meet these requirements without adaptations.
Minimum Contract Duration and Conditions: Minimum lease terms and formal requirements are introduced for room contracts.
Contract Registration: Contracts must be registered with the Catalan Rental Registry (INCASÒL) under penalty of administrative sanctions.
For flex living operators working with multi-residential units in Catalonia, Law 11/2025 is essential to analyze. Coliving licenses in Barcelona have changed substantially with this law.
It is important to bear in mind that the requirements of Law 11/2025 apply to the contract between the operator and each resident (the B2C level), but do not exempt the operator from properly structuring the contract between the property owner and the operator (the B2B level). These are two distinct legal relationships that require different instruments. Both levels are analyzed in detail in the section Contracts in Flex Living: Which Type to Use and How to Structure Them of this guide.
Flex living projects are structured around business models whose viability depends on profitability: there are return commitments to investors or financing entities, and in master lease or management schemes, also guaranteed rent obligations to the property owner. In this context, an unforeseen urban planning restriction, or one not detected during the analysis phase, can jeopardize the entire financial structure of the project. In Barcelona, the regulation that most frequently introduces this friction is the Modificació del Pla General Metropolità (MPGM) de 2021.
The MPGM introduced significant limitations on residential use in certain areas of the city, with the aim of preserving the existing housing stock for ordinary residential use. Specifically:
This means that a building with residential zoning in the Eixample district of Barcelona may be prohibited from commercial flex living, even if seasonal rentals are legal under the Urban Leasing Law (LAU). Zoning and the rental regime are two independent dimensions that must be met simultaneously.
To fully understand how flexible living and urban planning interact in Catalonia, it is essential to review the specific planning of each plot before committing to any investment.
Seasonal rentals (non-tourist accommodations with stays longer than 31 days) take place in a house or apartment building and do not involve a change of land use or a specific building permit. The property maintains its residential classification, and the rental does not alter its zoning designation.
However, it is important to distinguish between two models with different requirements. Room rentals without additional services do not require a business license or specific permit: the obligations are of a civil, tax, and registration nature. Flex living, as an organized economic activity with the provision of services, does require the corresponding municipal business license for the property where it takes place. Since there is no specific urban planning regulation for flex living, the specific requirements depend on the criteria of each municipality.
Certificate of Occupancy: An essential requirement for any dwelling intended for rental. It certifies that the property meets the minimum habitability standards established by regional regulations. Without a valid certificate, the rental agreement may be contested, and the operator is subject to administrative penalties.
First Occupancy License: In some autonomous communities, including Catalonia, the first occupancy of a dwelling requires an express municipal license. This requirement particularly affects newly constructed properties or those that have undergone significant renovations involving a substantial modification of their configuration. Operators working with newly developed buildings must verify that this license has been granted before formalizing contracts with tenants.
Registration for the Economic Activities Tax (IAE): Operators acting as business owners or professionals are required to register for the IAE under the heading corresponding to their activity. The choice of business activity code is not irrelevant: it has direct implications for the applicable VAT regime and how the Tax Agency can classify the nature of the activity.
Registration in sector-specific registries: Depending on the autonomous community and the specific model, registration in specific registries may be required: regional rental registries, tourist activity registries (if the model includes short stays or services that make it similar to tourist accommodation), or other applicable sector-specific registries.
In short, the administrative compliance of flex living rests on two distinct axes: the municipal business license, required because it is an economic activity, regardless of the contractual relationship with the tenant, and the suitability of the property to habitability standards, the correct tax and registration classification of the operator, and the consistency of the model with the boundaries that separate seasonal rentals from tourist accommodation.
In our firm’s experience with flex living and coliving projects in Catalonia, the mistakes are concentrated in three areas:
1. Ignoring the Property’s Zoning. The operator rents or buys a residential building assuming they can freely use seasonal rentals, without verifying whether the commercial activity is compatible with the zoning regulations. The result: an investment of several million euros in a property that cannot be used for the intended activity without a costly and time-consuming change of use.
2. Using Standard Internet Contracts. Seasonal rental contracts downloaded online are not adapted to the requirements of modern flex living, do not adequately address the reason for seasonality, and do not include the necessary clauses for managing included services. They pose a risk in any inspection or litigation process.
3. Not Analyzing the VAT Issue Before Establishing the Business Model. The service structure determines the tax regime. A subsequent change may result in a significant tax debt with interest and surcharges.
In flex living, the contractual structure has two layers that should not be confused. The first is the contract between the property owner and the operator, a B2B contract, which serves as the instrument for launching the project. The second is the contract between the operator and the tenant or resident, a B2C contract, which generates revenue and carries the main regulatory risks. Both contracts have different objectives, legal frameworks, and risks. Treating them as a single unit, or drafting the B2C contract without having addressed the B2B integration, is one of the most frequent structural errors in flex living projects.
The relationship between owner and operator can be structured in many different ways, with different legal and tax consequences for each party. The most common structures are:
In any of these modalities, the B2B contract must resolve critical issues: who is responsible for obtaining and maintaining administrative licenses, how construction and maintenance obligations are divided, what happens if the property’s zoning classification is incompatible with the activity, and what the early termination procedure is if the operation does not achieve the agreed-upon profitability targets.
The seasonal lease agreement (Art. 3.2 LAU) is the most common legal instrument in flex living for entire apartments. To be valid and not be reclassified as a primary residence lease, it must:
In the room rental model, the B2C relationship is governed by individual contracts with each resident. However, in Catalonia, Law 11/2025 introduces specific formal requirements, minimum term requirements, and mandatory registration with INCASÒL that do not apply to the rental of entire dwellings.
Regardless of the contractual level, B2B or B2C, there are clauses that must always be present and that standard contracts typically do not include: responsibility for obtaining licenses (who is liable if the license is missing?), regulations regarding works and improvements, handling of user deposits, protocol for administrative inspections, exclusivity or non-compete clauses, and early termination provisions. A detailed analysis of each of these clauses is part of the lease and license advisory services we provide at our firm.
The taxation of flex living, along with urban planning, is the most complex and risky area for operators. The tax regime depends critically on the service structure, and the consequences of an incorrect classification can be substantial.
The question hinges on Article 20.One.23 of Law 37/1992 on VAT (LIVA), which establishes VAT exemption for residential leases. The general rule is:
Flex living falls between these two extremes. In practice:
The Spanish Tax Agency and the Supreme Court have issued inconsistent rulings in recent years. In 2024, the Supreme Court consolidated the doctrine that the VAT exemption does not apply when the landlord provides complementary services that go beyond simply making the property available. In 2025, the Spanish Tax Agency (AEAT) published a binding ruling (V1234-25, for reference only) clarifying the treatment of regular cleaning services, considering that cleaning less frequently than monthly may be indicative of hotel services.
For operators, the practical impact is enormous: if flex living is subject to VAT and the operator has not charged it, the tax liability includes the undeclared VAT plus late payment interest and, potentially, penalties. Conversely, if VAT is charged when it is not applicable, the tenant (especially if they are the end consumer) can claim a refund. Reviewing the tax structure before launching the project is non-negotiable.
When an operator or fund acquires a property for flex living, the taxation of the sale also has specific characteristics. The transfer of a resale property is, in principle, exempt from VAT and subject to Transfer Tax (ITP) under the Transfer of Ownership (TPO) modality. However, if the seller is a businessperson and the property is used for their business activity, it may be possible to waive the VAT exemption (Art. 20.2 LIVA) and subject the transaction to VAT at 21%, which can be advantageous for buyers who intend to deduct the VAT paid.
The analysis of the purchase transaction must incorporate specialized real estate taxation to avoid suboptimal taxation. In transactions of a certain size, the difference between the optimal and incorrect tax structure can amount to hundreds of thousands of euros.
Most flex-living operators of a certain scale operate through companies, usually limited liability companies (SLs) or holding companies. The Corporate Income Tax (CIT) regime is standard: taxation at the general rate of 25% on profits, with specific provisions applicable to small businesses (EREDs) if their turnover does not exceed €10 million.
A key issue is the taxation of management or master lease agreements between companies within the same group. Related-party transaction regulations (Article 18 of the Spanish CIT Law) require that transactions between related parties be valued at market price. Operators structuring their business with multiple Special Purpose Vehicles (SPVs) must properly document related-party transactions to avoid adjustments by the Spanish Tax Agency (AEAT).
In Spanish urban planning law, each property has an assigned use in the planning regulations: residential (housing), commercial (retail, offices, hotels, accommodation), public facilities, industrial, etc. The activity that can be carried out in a property depends, first and foremost, on its zoning designation.
For flex living, the problem is that the model falls into a gray area between residential and commercial (accommodation) use. Depending on its structure:
Incorrect zoning classification is the most serious problem that can affect a flex living project because it has no quick solution. A change in zoning use may require a specific modification of the planning regulations, a process that can take years and whose outcome is not guaranteed.
There are two scenarios of incorrect zoning relevant to flex living, with different legal natures and consequences.
Activity in a building without residential zoning: When an operator carries out their activity in a building whose zoning designation is not residential, but commercial or office, leasing for residential use is incompatible with that designation. This situation constitutes a planning violation: the authorities can order the immediate cessation of the activity, impose administrative fines (which in Barcelona can exceed €600,000 for serious violations), and the operator is subject to civil liability towards users who entered into leases unaware of the irregularity. From a financial perspective, banks and investment funds typically condition the closing of transactions on obtaining favorable planning reports; an incompatible zoning designation can block or increase the cost of project financing, with a direct impact on the profitability commitments made to investors or the property owner.
Simulation of Seasonal Rental of a Primary Residence: The second scenario involves someone who, possessing a residential property, formalizes what is in practice a permanent residential lease under the guise of a seasonal contract, whether for the entire dwelling or just a room. Typical indicators include the absence of a genuine reason for the temporary nature of the lease, the systematic renewal of contracts without interruption, or tenants without a proven connection to employment or a training program in the area. When an inspection or litigation reveals the simulation, the contract is reclassified as a primary residence lease: the tenant regains the minimum rights established in Title II of the Urban Leases Act (minimum terms, mandatory extensions, rent limits in high-demand areas), with consequences that may include the reimbursement of overpaid rent. The operator is also subject to administrative penalties. In Catalonia, the Agència de l’Habitatge has intensified the detection of these cases, paying special attention to room rentals where the temporary nature of the contract is incompatible with the actual profile of the tenant.
Flex living is a flexible accommodation model that offers fully equipped apartments or rooms with included services for short or medium-term stays (weeks or months). Yes, it is legal in Spain, but its legality depends on how the model is structured: what type of contracts are used, what services are included, the property’s zoning classification, and what administrative permits have been obtained. Operating without verifying all these elements exposes the operator to significant legal and economic risks.
It depends on the model. Renting rooms without additional services does not require a business license or specific permit; Law 11/2025 of Catalonia regulates the contract conditions and its registration, but does not introduce any prior licensing or permit requirements. Coliving and flex living, on the other hand, operate as economic activities providing services and therefore require a municipal business license. In any case, it is essential to verify that the property’s zoning classification is compatible with the intended use.
Short-term rentals are the legal category (Art. 3.2 LAU) that regulates leases for uses other than primary residences. Flex living is a business model that, in many cases, uses seasonal rentals as a legal instrument, but adds a layer of professional management and services that differentiates it from conventional short-term rentals. This distinction is relevant because flex living with services may have different tax treatment (VAT vs. exemption) and require additional licenses that ordinary seasonal rentals do not.
The tax treatment of flex living depends on the service structure. If it is a seasonal rental without hotel services, the income is exempt from VAT and subject to Transfer Tax (ITP). If the service includes amenities similar to those in the hotel industry (frequent cleaning, reception, linens), it may be subject to 10% VAT. In the purchase and sale of properties for flex living, it’s necessary to analyze whether it’s possible and advantageous to waive the VAT exemption in order to deduct the input VAT. The operator’s corporate structure also has implications for corporate income tax and related-party transaction obligations.
For flex living, yes, as an economic activity: the operator managing a flex living project with service provision needs the corresponding municipal business license for the property where this activity takes place. For the rental of rooms without additional services, no: Law 11/2025 of Catalonia establishes contractual and registration requirements, but does not require a license or prior administrative authorization simply for renting rooms. The relevant distinction is between the urban planning permission (which determines what use is permitted on the property) and the business license (which authorizes the operation of an economic activity on that property). These are two distinct instruments with different requirements and procedures.
Flex living is one of the fastest-growing real estate markets in Spain, but also one of the most complex from a regulatory standpoint. Each project faces a puzzle of state, regional, and municipal regulations that must fit together correctly for the operation to be legally sound.
The risks of not having specialized legal advice from the outset are concrete and quantifiable: investments blocked by zoning issues, tax debts due to an incorrect tax structure, cessation of activity due to lack of a license, and contracts that do not adequately protect the operator in case of a conflict with a landlord or tenant.
At Sandín Abogados, we are a law firm specializing in Real Estate Law. We have years of experience advising on projects and have firsthand knowledge of the recurring problems that affect this market. The perspective we bring is not just that of a lawyer: we have worked in-house with developers, real estate funds, and the hotel sector, and we understand the business dynamics of operators from the inside.
Our approach to flex living projects covers: legal feasibility analysis of the model, review of the property’s zoning classification, obtaining licenses and permits, drafting and negotiating lease and management agreements, optimal tax structuring of the transaction, and representation before government agencies and in litigation if necessary.
If you are considering launching or scaling a flex living project in Spain, the time to talk to us is before signing any documents. The cost of a legal error during the structuring phase is always higher than the cost of preventative advice.
