RENTING a Spanish property to tourists mainly through internet portals and websites such as Airbnb, HomeAway, Windu, etc. can be a very interesting way to obtain returns from property in Spain and can be much more profitable than long term rental.
There are howeverlegal requirements needed which are more stringent than in normal rental contracts (subject to the Urban Leases Law) and failure to comply with the rules of tourist rentals, may have as a consequences the imposition of significant penalties.
Within the Valencian community, the matter of renting tourist accommodation is regulated by the recent Law 15/2018 of June 7 of the Generalitat, of tourism, leisure and hospitality as well as in Decree 92/2009.
In Spain there are several different regulations which may be applicable depending on where the property is located.
According to the rules in the Valencian area, tourist housing is considered to be a propertywhich is available for a set price usually in conditions of immediate availability and for tourism, leisure or holiday purposes.
In addition, the regulations refer to the principle of exploitation unit, that is, that the different units of tourist accommodation within a building or an independent and homogeneous part of it must be managed by just one single management company.
In addition, the Valencian regulation does not foresee, and it is therefore generally understood that it is not allowed, that a property (villa, apartment, etc.) is only partially available as a tourist let(that is to say, it is not allowed to rent some rooms only, nor can the owner live or use the property while part of it is rented to tourists.)
The application and process for the registration of a property as tourist housing (up to four houses), is simple. If the registration is for five or more houses, the requirements are different.
In general, if you intend to register your property as a tourist house you will be required to present the following documentation:
Title Deed (ownership):You must be able to prove that you are the owner, through for example the deed of sale, inheritance etc.
Town Hall Compatibility Report:Since the approval of the new regulations in 2018 it is necessary to obtain a report from the competent Town Hall confirming that the tourism rental activity of your property is compatible or possible, according to planning and urban regulations.
Occupation License: Likewise, an Occupation License will be necessary in order to record the property in the registry of tourist properties and to be able to legally let it out this way.
Travelers Registry: In addition, according to the regulations in force, you are obliged to keep a register of travellers and to communicate detail of their occupation of the property to the police or Guardia Civil, (depending on local regulations)
Tourist Housing in Non-Urbanisable Areas: If your property is in a rural area (not urban), the process becomes more complicated, because you cannot let out it this way, unless you obtain a Declaration of Community Interest (DCI), from the competent Authority, which can usually delay the registration process.
If you are thinking of letting out your property Spain to tourists or want to know if you are doing it correctly, contact us and we will help you.
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.
Carlos Baos (Lawyer)
White & Baos
Tel: +34 966 426 185
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