Investing in spanish holiday homes rentals
Vacation rental is an increasingly attractive business in Spain, but to operate with guarantees, the corresponding tourist rental license is essential. Gone are the days when one could rent a holiday home without a license: nowadays, Spanish authorities are more vigilant than ever about these rentals.
Moreover, their means are more advanced than ever: now, they have tools like the Model 179 and tourism inspections to “catch” those trying to evade their control and do not have the necessary license for their vacation rental.
However, it’s also true that the regulations for vacation rentals in Spain can be somewhat chaotic for those not well-versed in laws. For this reason, understanding how to obtain a tourist rental license is not a given: many homeowners who would like to use their properties for these purposes find themselves lost in the situation.
What is a vacation rental license?
A vacation rental or tourist rental license is a permit granted by the Administration that authorizes the homeowner to exploit it for tourist accommodation purposes. Regulatory competencies over vacation rental licenses fall to the autonomous communities in Spain. However, municipalities also have the power to regulate in this area. This latter phenomenon is frequent especially in the areas with the highest tourist influx in our country.
Requirements for obtaining a vacation rental license
The requirements for obtaining a vacation rental license in Spain vary depending on the autonomous community and the municipality where you wish to start the tourist accommodation business. However, since the procedure is generally relatively similar in all areas of Spain, this article will briefly explain the three main requirements that must be met to obtain a tourist rental license anywhere in our country:
- Notify the authorities:
- The first requirement to obtain a license for a tourist apartment is to inform the corresponding city council of your intention to start a short-term or vacation rental activity. This is done by submitting a “declaración responsable” (responsible declaration), which must include:
- Identification data of the housing and its owner
- Maximum capacity of the dwelling
- Operating period of the accommodation
- Type of management (owner or external manager)
- Additionally, to the responsible declaration, a series of documents must be attached:
- Proof of fee payment (if any)
- Certificate of habitability or first occupancy license
- Civil liability insurance (only in some autonomous communities)
- Once everything is submitted, the city council will notify the corresponding Regional Tourism Registry, which will then assign a registration number. From this point, you can start hosting guests in the property, although this can vary depending on the autonomous community.
- The administration has a period to respond that ranges from 2 weeks to 3 months. Also, it should be mentioned that municipal land use planning where the dwelling is located may limit or condition its use, as may the Statutes of the Community of Property Owners, if there were any.
For more information about the process of obtaining a license for apartment rentals and tourist homes, we recommend visiting the corresponding city hall, as well as consulting the regional and municipal regulations that apply to the case.
- Declare the rental activity:
- The second requirement that must be met once you have been granted the license is to report it to the Tax Agency, regardless of whether you are required to pay the Tax on Economic Activities (IAE) or not.
The category in which you must register your accommodation will vary depending on whether you provide hospitality services considered typical of the hotel industry. If the answer is yes, you must register it as “Extrahotel Tourist Accommodation” in group 685 of the IAE. Otherwise, you will have to register your business under heading 861.1 “Rental of dwellings.”
You can read more in-depth about the topic in our article on how to declare a vacation rental.
Lastly, do not forget that to provide legal security for rentals and adequately protect the rights of the tenant and the landlord, the best way to act is to formalize a vacation rental contract each time a guest entry occurs in the housing.
- Comply with current regulations:
- The third and final requirement that must be met to maintain the tourist rental license is to comply with the regulations in question, which in Spain are the regional ones. This regulation will regulate the specific conditions of the lease in the territory where the accommodation is located, including the rights and obligations of the landlord and the tenant.
With the controversy over the sector and the confusion over the regional regulations for vacation rentals currently, it is essential to consider all these points to ensure that the business complies with all legal requirements.
What are the risks of renting without a tourist license?
The phenomenon of illegal tourist apartments has been known for quite some time in our country, but as we mentioned at the beginning of the article, currently renting without a tourist license is much more difficult than in the past.
Keep in mind that in some autonomous communities, such as Madrid, merely advertising your property on Airbnb o similar channels is enough for the tourism administration to demand the license, regardless of the number of days you have hosted guests. We always recommend all hosts to have their accommodation papers up to date. The fines can reach up to €600,000. for having a vacation rental in an illegal situation depend on the autonomy, but area such as Alicante or Valencia provinces.
Not only that, but the tourist rental license acts as a filter, preventing individuals with few scruples from making easy money and disregarding problems when they inevitably appear.
At the end of the day, most owners understand that the tourist license is a necessary measure that benefits the sector and the good professionals in it.
Conclusion
Navigating the regulations and requirements for a vacation rental in Spain is complex but essential for legal compliance and successful business operation. Consulting with experts and adhering to local laws ensures that your investment not only yields returns but also contributes positively to the tourist ecosystem.
“Exploring new territories in vacation rentals is like venturing into space—both require careful planning and legal ‘navigation systems’ to ensure a safe and profitable journey.”
For a comprehensive guide and expert assistance in obtaining your tourist rental license in Spain, consider reaching out to legal and real estate professionals. Their expertise can provide invaluable guidance through this intricate process, ensuring that you meet all legal obligations and maximize your investment potential.
