The holiday rental licence law in Spain is made as an attempt to set minimum standards, regulate the industry and organize the tax collection in the trade.
There is an estimated € 3 billion in non-declared earning made every year from this type of rental.
This control also tries to prevent for the natural resources of the country, coasts, beaches, forests, etc. to be overexploited and thus damaged.
Under the tourism license banner, this regulation includes the rentals of apartments, flats and villas near or on the coast, as well as rural homes.
The regulation ensures it is mandatory to all landlords or proprietors of such units, and who aim to rent it out, to have the properties registered, with minimum standards (of dwelling, hygienic and safety), paying relevant fees and available for inspection.
However the well intentioned principle described above, the regulation belongs to each of the regions of Spain (not to the central Government) so there is not one set of rules, but rather seventeen (as many as regions with the capacity to pass laws in Spain).
This makes, for instance, that three well known areas of holidays, Alicante, Murcia and Almería, next to each other along the coast, belong, each other, to different regions.
A home owner of a property in Spain wishing to rent it out as holiday / short term home, must go through the following process (subject to minor specifications in each region):
- Registration at the relevant touristic office of the region (where the property is). This includes to complete the relevant forms, payment of application fees, give evidence of ownership, etc.
- Cooperate with the authority and make sure the property is in compliance with the law requisites, displaying safety signs at the property, allowing the inspectors an initial review and measurement of the property, etc.
- Register the income / rentals with the tax office.
- To ensure the standards and criteria of the licence are kept at the property. Also, that a minimum of emergency contact numbers (firemen, ambulance, police) are held visible at all times in the unit rented.
- Allow for routine or special inspections, and notify of refurbishments or changes in the property.
- Payment of monthly, quarterly and / or yearly fees.
- Keep a specific insurance for the property (apart from the home insurance) which is the public liability insurance.
Once a property is authorised as suitable for rental a registration number is assigned to the property.
This number must be entered and displayed in all documents, advertising, safety signs and correspondence with the authorities.
If you own or are considering buying a property and would like assistance with your application, please don´t hesitate to contact us.
RDT Abogados offer a fixed price for this service.