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.
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’.
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.
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.
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)
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.
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 order to start the process, the interested party must provide:
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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