If you are the owner of a property on the Costa Blanca which you use as a second home, or to spend your holidays in Spain, this year you will have had the same thought so many others have had before you: How can I market my property as a holiday or tourist accommodation?
Several European clients from our office have asked us how to process a tourist rental licence. Therefore, we have decided to explain the most important aspects to consider when registering your property, both if you can come to the Costa Blanca in person, or if you wish to manage the registry from abroad.
First of all, we would like to clarify that the regulations concerning tourist accommodations in Spain fall under the jurisdiction of each autonomous community. Therefore, if your property is located in an autonomous community other than the Valencian Community, we recommend that you contact us to tell us which community it is in, so that we can offer you a personalised service.
The difference between ‘tourist accommodation, ‘seasonal rental’ and a ‘tourist housing estate or complex’
An important aspect to bear in mind, one which often produces confusion, is the difference between ‘tourist accommodation’, ‘seasonal rental’ and a ‘tourist housing estate or complex’.
1. TOURIST ACCOMODATION
Tourist accommodation refers to complete properties, of whatever type, which, according to the municipal urban compatibility report, allow tourist use. This is, any real-estate property that’s immediately available for repeat rentals to tourists for tourism, leisure, or holiday use.
Repeated rental is considered to exist when one of the following circumstances occurs with respect to the property:
a) It is endorsed for tourist use by companies managing tourist accommodation.
b) It is made available to tourists by its owners or holders, regardless of the period of time it is booked and provided that services of the hospitality industry are provided.
c) When tourism marketing channels are used. Tourism marketing is considered to used when it is carried out through tourism operators or any other tourism sales medium, including the internet or other new technology.
2. SEASONAL RENTAL
If the above requirements are not met, it shall be determined that there is no repetition and, therefore, the property will not be governed by law 15/2018. In this case it shall be considered as seasonal rental, which is governed by the Urban Leasing Law.
3. TOURIST HOUSING ESTATE OR COMPLEX
The tourist housing estate or complex is the whole of a building or complex made up of flats, villas, chalets, bungalows or similar which, with common facilities or services, are intended for tourist use and managed by a single operating unit. The complexes that provide the additional services set out in this Decree for this type of establishment may be marketed and used under the name of “aparthotel”. (DECREE 91/2009, of July 3, of the Council)
Requirements for a property to be considered “Tourist Accommodation” on the Costa Blanca
1. The property must be furnished and equipped and must be immediately available.
2. The intention is to market or promote the property in exchange for a fee, that is, the goal is to make a profit.
3. The real estate property, apartment, bungalow, villa, or otherwise similar building, is used for tourist, holiday, and/or leisure use.
4. In order to use the property as tourist accommodation, the municipal report of urban compatibility must be obtained.
5. And, finally, comply with one or more regularity criteria; repeated rental (mentioned above) when marketing the property.
Obligations of property owners for properties used astourist accommodation in the Valencian Community
1. Register the property in the Valencian Community Tourism Registry
The owner or their legal representative must register the property in the “Registro de Turismo de la Comunidad Valenciana” Valencian Community tourism registry. This can be achieved in the following ways:
- In person: By going to the offices of the Territorial Tourism Services.
- Online: By processing it through the Valencian Community Tourism website.
- Remotely: Through a post office or at the embassy or consulate.
In order to start the process, the interested party must provide:
- A document stating which property is to be used for tourist accommodation, along with its characteristics
- A statement of compliance specifying that the property meets the requirements stated above
- Documentation regarding the individual or corporate body, owner of the property
- Documentation on the property: deed, certificate of occupancy…
- Land registry reference number
- And the municipal report of urban compatibility that allows the use of the property as tourist housing
At Savloir law firm, we offer a consulting service, which consists of carrying out all the necessary procedures to register the property as tourist accommodation. Furthermore, we can be your legal representative in Spain. Therefore, we would be able to carry out, all the procedures you need for the correct maintenance of your property on the Costa Blanca, on your behalf and under your supervision.
The Savloir Team
2. Be truthful in the advertisements that are issued regarding the tourist accommodation
The advertising that is published for the property must be truthful and impartial. It should show the characteristics of the property, the services and facilities offered and the terms of use.
In addition, the registration number of the property and its category must be provided.
Furthermore, the distinctive features that correspond to its use as tourist housing must be visibly displayed.
3. Traveller’s register and complaint sheets
All accommodations for tourist use must have a registry of travellers or users, in the traveller’s register. This information must be kept for three years.
It must also have a complaint log available to the guests, and a board on which its existence is displayed.
4. Compliance with data protection
The personal data of the travellers collected must be legally processed. The travellers must be informed of the legal use of such data, the time it will be kept, and their right to rectify, limit or delete said personal information.
There are companies that specialise in data protection which take care of this issue. Also, companies that manage tourist accommodations comply with data protection.
5. Obtain advice on municipal and neighbourhood regulations
Each municipality may have its own regulations regarding standards and matters of neighbourly coexistence. Therefore, we recommend you learn about these regulations. Also, you should inform guests about them so as to avoid potential negative consequences both for the responsible party and for your neighbours.
How to process a municipal report on urban compatibility in the Valencian Community
The municipal report on urban compatibility is processed by the town hall to which your property belongs. For this process, you will need:
1. A photocopy of the applicant’s ID card and their legal representative, if applicable.
2. Proof of payment of the current fee for urban development projects. Each town hall sets its own rate for this fee.
3. Technical drawing(s) of the property.
4. A report (technical specifications) of the project, depicting its characteristics. Also, representative drawings of the project (of each floor, section, etc.).
5. Land use specifications.
6. Installation requirements for essential public services.
How to obtain the (first and second) occupancy certificate
To obtain the certificate of (first or second) occupation the applicant needs to fill out an application at the town hall to which the property belongs. To obtain this certificate the property must meet the occupancy, health, urban planning and structurally sound requirements. For this purpose, a technical certificate from a registered architect is required.
Owner’s Rights
1. To receive payment in exchange for guests staying at their property
The owner of the property has the right to receive payment in exchange for the guest’s use and enjoyment of the property. This payment is made in advance or upon delivery of the keys.
2. To collect a deposit as a reservation or guarantee
The owner may also demand a deposit as a reservation, or guarantee, to be returned at the end of the stay and only once the condition of the property has been verified after the guest’s departure.
3. To cancel the contract
If guests breach any of the housing guidelines, such as exceeding the number of people staying at the property while the contract is in force, the owner may terminate the contract.
Taxes on profits of tourist accommodation on the Costa Blanca, Spain
Value added tax (VAT)
The VAT for tourist accommodations on the Costa Blanca is 10% but will only have to be paid if hotel sector-like services are provided: such as restaurant-like services, cleaning service, daily changing of the sheets, etc. Conditions which rarely apply in the type tourist accommodations mentioned in this article.
If you are exempt from paying VAT, as is the case for most tourist accommodations, it is necessary to review whether the owner is a tax resident in Spain, or not.
In the event that you are not a tax resident in Spain, you will be taxed as a non-resident. Under IRNR model 2010, taxes of 19% or 24% will be applied in the form of income tax on net profit.
On the other hand, in the event that the owner is a tax resident in Spain, IRPF (income tax) will apply, as detailed below.
Personal Income Tax (IRPF)
If the property being rented to tourists is rented without other services, the income obtained is considered as return on real estate property. It is not possible to apply the 60% deduction that is applied for normal housing rental. However, there are partly deductible expenses such as electricity, water, and the real estate tax (IBI) as well as the owner’s association fee, corresponding to the period at which the house was rented.
Tourist accommodation Platforms that operate in Spain
- AIRBNB: The most renowned in the whole world. AIRBNB is a platform for a range of holiday rentals whether for days, weeks, or months. They might be complete houses, or just rooms. It also allows hosts to sell experiences in addition to accommodation. AIRBNB charges approximately 3% service fee per accommodation.
- HOMEAWAY: Offers a wide array of housing at different destinations. The platform offers a wide range of filtering options so that the user can find their ideal holiday home. Thanks to this filtering system your property’s advertisement can achieve higher visibility than on other platforms. The charge at Homeaway is by annual subscription, or by accommodation, the host deciding which one to apply.
- SPAIN-HOLIDAY: This company specializes in holiday rentals in Spain. On the platform, the search is carried out according to the type of accommodation desired, whether it is a house by the sea or an apartment in the city. The reservation is made directly with the owner, who can also give the traveller recommendations regarding places to visit.
- Homestay: This is an international option. Homestay has few filters, but it lets you limit the search by zones of a city. There are complete houses, apartments, and even individual rooms for renting.
- BOOKING: This platform focuses on hotels and not on holiday rentals. However, as it is the most visited online travel website, it has great traffic and visibility. It charges 15% of the received bookings and does so on a monthly basis.
Tourist accommodation Managers
Nowadays there are numerous companies that are able to conveniently manage your tourist accommodation. There are different profiles according to the degree of involvement and the extent of their services. In general, they are in charge of promoting the property; welcoming, bidding farewell to and attending to guests; cleaning and adapting the house according to the needs of the users; and managing the prices and the booking calendar. They can be classified according to the type of management:
- EXPRESS: With this service the company is responsible for welcoming and bidding farewell to guests, checking the property after departure, cleaning, and incident management.
- ALL-INCLUSIVE: Includes all EXPRESS services, without limitations. This would be the ideal (and most comfortable) option if you cannot travel to the Costa Blanca every time you have guests.
- CHECK-IN: This option also provides guests with the necessary tourist information regarding the surroundings.
- DIGITAL AND REVENUE: With this service the company only manages the pricing strategy and the profiles on the different platforms the property is published on.
If you are looking for companies that offer tourist accommodation services in Spain, click on the link.
At Savloir we will help you in the processing of everything you in order to rent your property for tourist use. Do not hesitate to contact us for more information.
Joaquin Pons, CEO Real Estate Lawyer at Savloir
