What Is a Mid-Term Let and How It Differs from a Holiday Let

When we speak with owners who are just getting started in holiday rentals, one question always comes up:

“I know I can rent my flat, but should I advertise it as a mid-term let or as a holiday let?”

It’s a very common doubt, so let’s clear it up properly. 

In this guide, you’ll learn:

1. What a mid-term let actually is
2. What counts as a holiday let
3. And how to choose the option that best suits your property

We’ll use real examples and include a quick checklist to help you decide confidently.

Let’s start with the basics.

What Is a Mid-Term Let?

A mid-term let (or temporary rental) is defined in Spain’s LAU as the rental of a property for a purpose other than permanent residence.

Put simply: the tenant stays in your property for a specific reason and for a limited period.

For example:

• A temporary job posting
• A university term
• Home renovations
• An extended holiday

Once that reason ends, so does the contract.

There’s no legal minimum, but in practice mid-term lets usually last from one month up to eleven months.

Be careful, though. 

If the stay goes beyond 12 months, the tax office (and the courts) may consider it a permanent residence, which changes the legal framework entirely.

Examples of valid mid-term lets:

✔️ An engineer renting a flat in Seville from October to March for a work project
✔️ A family renting a coastal home for the entire summer
✔️ A couple escaping the city heat by renting a mountain apartment for two months

What should a mid-term tenancy agreement include?

At minimum, it should clearly state:

• Purpose and reason for the stay (work, study, long holiday, etc.)
• Exact duration (start and end dates)
• Price and payment terms
• Inventory, if furnished
• A clause confirming the tenant waives the right to long-term extensions

Without these points, your contract won’t be fully enforceable if a dispute arises.

So that’s the essence of a mid-term let. Now, let’s look at how a holiday let differs.

What Is a Holiday Let?

A holiday let (or vivienda de uso turístico) is the short-term rental of a furnished and equipped property for profit through tourism platforms such as Airbnb, Booking.com, or Vrbo.

It’s regulated by each region’s tourism laws and has several defining features:

• The stay is usually under 30 days (varies by region)
• You need a tourist licence or declaration, registration, and compliance with safety and accessibility rules

Straightforward.

But let’s dig into the key differences.

Mid-Term Let vs Holiday Let: The Key Differences

Duration

• Mid-term: From 1 to 11 months, ideal for longer stays (e.g. digital nomads, students, or professionals).
• Holiday: Days or weeks; high turnover with frequent check-ins and check-outs.

Regulation & Licences

• Mid-term: Governed by the LAU (Urban Lettings Law). No tourist licence required, though some regions require a security deposit with the local authority.
• Holiday: Governed by regional tourism laws; you must register the property, report guests to the police, and comply with signage and safety requirements.

Taxation

• Mid-term: Declared as rental income under your personal income tax (IRPF).
• Holiday: Declared as non-habitual income; if you offer hotel-style services, you may need to charge 21% VAT (or 7% IGIC in the Canary Islands). 

Services & Facilities

• Mid-term: Basic furniture; tenant usually covers utilities and cleaning.
• Holiday: Guests expect more. Wi-Fi, coffee machine, bed linen, towels, and sometimes extras like a pool, streaming services, or welcome packs.

Demand & Seasonality

• Mid-term: Helps fill low-season months (ideal for October–May rentals).
• Holiday: Heavily seasonal, coastal demand peaks in summer, while urban areas do better over Easter and holidays. The Canary Islands are an exception, with year-round demand.

Pros and Cons of Each Option

Mid-Term Let: Advantages

✔️ Lower turnover, less cleaning, fewer check-ins
✔️ Less wear and tear overall
✔️ No tourist licence required

Mid-Term Let: Disadvantages

❌ Monthly income is lower. Rarely matches short-stay rates
❌ Risk of being treated as a long-term tenancy if not managed properly
❌ Harder to sell short gaps between lets

Holiday Let: Advantages

✔️ Higher nightly rates, especially in high season
✔️ Full flexibility. You can block dates for personal use
✔️ Ability to target specific segments (families, couples, luxury stays, etc.)

Holiday Let: Disadvantages

❌ More red tape: licences, guest registration, inspections
❌ Intensive management: cleaning, laundry, maintenance, guest communication
❌ Less favourable tax treatment, though earnings are higher

How to Choose Between a Mid-Term and a Holiday Let

The right choice depends on your location, property, time availability, and appetite for admin.

Let’s look at some real examples:

1. Location & Demand

If your flat is on the Costa Brava, high-season holiday lets will bring in more revenue. But from October to May, a mid-term contract for digital nomads may be a smarter move.

2. Type of Property

• Small city studio without a lift? A mid-term student let will guarantee occupancy for most of the year.
• Villa with garden and pool? Go for a holiday or digital nomad rental, private pools are top-ranked on booking platforms.

3. Personal Availability

If you want to use the property in August, you have two clear options:

• A mid-term let from October to June, freeing it up in summer
• A holiday let all year with one month blocked for yourself

4. Tolerance for Red Tape

1. If you dread paperwork, taxes, and tourist regulations, stick with mid-term letting.
2. If you’re focused on maximising profit and happy to delegate, holiday letting is your best bet. 

Actually, a professional agency (like Home2Book 😉) can handle everything for you.

So, Which Option Should You Choose?

Now you know the rules, the figures, and the pros and cons of each model. 

The next step is to look at your specific case: your property, your time, and your goals.

In short:

• Mid-term let → stable income, less admin, moderate returns.
• Holiday let → higher income per night, more work, more regulation.

Our advice?

If you want solid income without the stress, let a professional agency manage it for you. 

You’ll sleep better, and so will your guests.

So, the real question is:

Do you want your property to rent more easily and perform better?

We are a vacation rental agency / mid-term let agency and we professionally manage nearly 600 properties in Spain. Get in touch through this form and we’ll be happy to help you choose (and manage) the best rental model for your property.