Thinking about renting your property in Spain? Here is what you need to know
Navigating the Tourist License Maze: A Guide to Tourist Licenses for Properties in Spain
Spain's allure as a tourist destination extends beyond its vibrant culture and stunning landscapes. For property owners looking to capitalize on the booming tourism industry, understanding the intricacies of obtaining a tourist license is important.
You may well be contemplating the idea of making your new holiday home ‘work for its upkeep’ when you or your family do not intend to use your new property. It is a fantastic way to make some rental income from your new home.
Obtaining a tourist licence will allow you to:
- Rent your property with peace of mind knowing you are fully compliant.
- Secure the local Tourism body stamp of approval. If you have a licence, prospective clients can also have peace of mind and know that your property is compliant, approved, and safe to use. And proves to the industry and your clients that your property meets the required quality threshold.
- Play your part as a local tourist accommodation provider. As an approved tourist accommodation provider, you can help expand the tourist accommodation available in your town or district. Approved, high quality self-catering accommodation, helps embellish and expand the local tourism industry.
In this guide, we'll unravel the complexities surrounding tourist licenses for properties in Spain, exploring the requirements, benefits, and the steps involved.
- What is a Tourist License?
A tourist license, often referred to as a "Licencia de Vivienda de Uso Turístico", also known as the Touristic Licence (Vivienda de Vacacional) in Spain, is a legal requirement for property owners who wish to rent out their homes or apartments to tourists. This license ensures that the property complies with specific regulations and standards set by regional and local authorities.
The main purpose of the licence, is to ensure that properties adhere to health and safety regulations, regulate competition for the tourist euro and make it fair on the hotel sector, and finally to protect the consumer financially.
- The Importance of Obtaining a Tourist License:
Securing a tourist license is not merely a bureaucratic formality; it is a legal obligation that carries significant consequences if ignored. Operating without the appropriate license can result in fines, legal complications, and even the closure of the property. Additionally, having a tourist license instils confidence in potential guests, assuring them of the property's compliance with safety and quality standards. It gives your future rental clients confidence that your property meets the required standards, and they get what they are bargaining for when they make a booking.
- Regional Variations:
One of the complexities of tourist licenses in Spain is the regional variations in regulations. Each autonomous community may have its specific requirements and procedures for obtaining a tourist license. It is essential for property owners to familiarize themselves with the regulations in their specific region.
For this guide, we have mainly Andalucía, uppermost in our mind. It is always advisable to speak with professionals, and your lawyer to ensure that if you intend to rent, that your property is suitable for short term rental and has or will be able to obtain a Tourist Licence.
- Basic Requirements for Obtaining a Tourist License:
While requirements may vary by region, some common elements are typically necessary for obtaining a tourist license. These may include:
- Proof of compliance with safety and health standards, e.g., Fire Safety Certificate
- All properties must have direct ventilation and a system for darkening rooms (blinds etc), be adequately furnished, have access to hot water and shower facilities, with a first aid kit available on the premises. In addition, a complaints book must be available and accessible.
- Proof of a property insurance. Make sure you advise your insurer that you are renting your home for ‘short term rentals’, otherwise you may not be covered!
- Confirmation of property ownership or authorization from the owner. Proof of ownership can be covered by furnishing the Escitura/Copia Simple. Don’t worry, all these terms will be fully understood and will come to you naturally after your first buying experience in Spain.
- Consent from the community of property owners (if applicable). This should always be investigated as part of your property Search with Martin Real Estates, ask your Sales Support representative. If you are thinking of renting, make this clear from the outset.
- Documentation demonstrating the property's suitability for tourist use:
- Energy efficient certificate
- Floor Plan
- Application Process:
The process of obtaining a tourist license involves several steps:
Preparation: Gather all necessary documents and ensure the property meets the required standards
Submission: Submit the application to the relevant local or regional authority. In the case of Calahonda, on the on the Costa del Sol, for example, an application needs to be made to the local Tourism Development office, your Martin Real Estate or Lawyer can help with guiding you through this process.
Inspection: Authorities may conduct an inspection to verify compliance with regulations. This normally takes place a few weeks after the application has been submitted.
Approval: Upon successful inspection, the tourist license is granted if all the paperwork is in order and the apartment meets the required standards. If everything is in order, you will be granted a ‘Viviendas Vacacionales’ Licence.
Congratulations, you are now legally permitted to rent your house/apartment to tourists.
- Duration and Renewal:
Tourist licenses typically have a validity period, after which they must be renewed. The duration may vary by region, ranging from one to five years. Property owners must stay informed about renewal requirements to avoid any disruptions in their rental operations.
For example, in Andalucía, if the property is sold, then a new owner needs to register the property in the new owner’s name. Makes sense, right? It is normally a straightforward procedure.
Are there any limits/Conditions to the licence? And the answer is ‘yes’, unfortunately. The limits can vary by region and specifically by location and community to allow for perfect harmony between local residents and visitors who may rent your property. Here are some of the more common restrictions:
- Occupancy Limits: There may be some limits to the amount of people permitted to spend the night! This is defined by the size of the property and its ability to accommodate guests safely.
- Noise and anti-social behaviour: You may be required to adhere to noise and code of conduct to ensure your guests do not interrupt the local environment and cause annoyance to your neighbours. For example, your rental clients are more than likely NOT to be allowed to host parties or entertain large numbers of party guests in your property.
- Tax Obligations: As you might expect, rental property owners are expected to pay tax on their rental income here in Spain. In addition, you may be required to declare income from your Spanish home in your home country, although this may or may not involved paying any extra tax, assuming there is a tax treaty between Spain and your Tax residency location. Best be sure, and informed and consult with your accountant or tax adviser.
Consequences of Non-Compliance:
Operating a tourist rental property without the proper license can result in severe consequences, including fines, legal actions, and the closure of the property. Additionally, unauthorized rentals contribute to the proliferation of unregulated accommodations, impacting the broader tourism ecosystem.
Navigating the landscape of tourist licenses for properties in Spain requires diligence, awareness of regional variations, and a commitment to compliance. Property owners seeking to capitalize on the burgeoning tourism industry should prioritize obtaining and maintaining a tourist license to ensure legal and financial security while contributing to the sustainable growth of Spain's tourism sector.
Whereas some of the language used above is cautionary by nature, the process of renting your property here in Spain is straightforward, and once you know the rules and how to go about it, you can ensure hassle free rental income, and make your property work you!
At Martin Real Estate we are here to help. Feel free to ask any questions or reach out to us, via email or phone. We will do our utmost to help you navigate the process of home ownership here in Spain and answer all your questions on a tourist licence friendly property. We look forward to hearing from you.
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