12 February 2025 Spain has overhauled its timeshare contract laws, introducing a five-year deadline for challenging certain agreements, prompting urgent action from those seeking redress. Published in the Boletín Oficial del Estado (BOE) on January 3rd, the reforms, part of a broader effort to improve the justice system, amend Law 4/2012, which governs timeshares, long-term holiday products, resale agreements, and exchange schemes.
A key change is the introduction of a new supplementary provision outlining time limits for challenging timeshare contracts. This provision establishes a five-year window for claims against contracts signed since January 5, 1999, that fall under legal regimes preceding Law 42/1998 (December 15th). This five-year limit applies specifically to claims based on breaches of mandatory provisions within Law 42/1998.
This deadline also applies to claims against “floating” or indeterminate timeshare rights, as defined by Law 42/1998. Successful claimants will receive a full refund of the purchase price and may also be awarded compensation for damages exceeding the market value of any usage of the rights or services enjoyed under the contract.
Crucially, any contracts not challenged within this five-year period will be considered validated and will then be governed by the terms registered in the Land Registry or their constitutive documents.
These legislative changes aim to bring clarity and finality to long-standing disputes within the timeshare industry. The five-year deadline is designed to expedite the claims process while offering legal certainty to all parties involved.
Given the immediate implementation of these amendments, individuals and organizations affected by timeshare agreements should act quickly if they wish to pursue a claim. Failure to do so within the five-year timeframe will result in their contracts becoming legally binding under the existing terms.
