Understanding Spain’s tourist licence for holiday rental properties

In recent years, the allure of Spain as a holiday destination has not waned, with its sun-soaked beaches, rich history, and vibrant local cultures attracting visitors from all over the world. For property owners, this presents a lucrative opportunity to earn extra income through short-term holiday lets. However, navigating the complexities of Spanish regulatory requirements, particularly when it comes to obtaining a tourist licence, can be daunting. This comprehensive guide aims to demystify the process, equipping you with everything you need to know about securing a tourist licence for your Spanish property.

Considering a holiday rental?

Renting out your Spanish property to tourists isn't as straightforward as listing it online. To operate within the law, you'll need a tourist licence – a legal requirement that ensures your property meets certain standards and regulations specific to holiday accommodation. The process and criteria for obtaining this licence vary significantly across Spain's 17 autonomous regions, each setting its regulations concerning tourist lets.

It is important to remember that renting out your apartment for short-term holiday stays, which is heavily regulated, is completely different from a long-term rental. The main motive behind introducing these regulations was to ensure quality of service, adherence to safety standards, and tax compliance.

A Tourist Licence doesn’t have a fixed duration that categorises a rental property as ‘touristic’; rather, its purpose is what matters. If a property is rented out for tourist, holiday, or leisure purposes, and especially if it's advertised on tourism marketing channels or managed by companies that specialise in holiday accommodations, then a tourist licence becomes a legal requirement.

Can I rent my property without a tourist licence?

While it might be tempting to sidestep the process, renting out your property without a tourist licence is not advisable. Fines for non-compliance can be steep, ranging from hundreds to even tens of thousands of euros. Additionally, online platforms like Airbnb and Booking.com now require that you list your licence number on the advertisement, meaning it’s increasingly difficult to rent without one.

However, not every rental scenario in Spain needs a tourist licence. For instance, if your property is rented out as someone's principal residence - even for a brief period - a tourist licence isn't required. The distinction lies in the rental's intended use. Should your property cater to leisure and holiday seekers, acquiring this licence is compulsory.

Who can get a tourist rental licence?

Any property owner in Spain can apply for this licence, whether you're a local resident or an international investor. However, you must ensure your property meets the specific regulations set out by the autonomía, or region, where it's located.

How to apply for the tourist rental licence

One common thread across regions is the variance in the application process and associated fees. For instance, some regions like the Comunidad Valenciana and Andalucía do not charge for the acquisition of this licence, whereas others do, with fees structured around the accommodation's capacity.

The application process's duration varies; in Andalucía, for example, applications can be submitted online with immediate issuance of an identification code for advertising purposes, barring properties classified as rustic. In the Comunidad Valenciana, obtaining the urbanistic certificate precedes licence application, extending the timeline to potentially 2 months.

Regardless of the region, the first step to securing a tourist licence involves visiting your local town hall (ayuntamiento) and completing the necessary paperwork. Approval hinges on your property meeting specific criteria, from safety regulations to accommodation standards. It's worth noting that in some cities, obtaining a new tourist licence may be impossible due to local restrictions. For instance, Barcelona, a hotspot for tourists, has halted the issuance of new licences altogether. In such cases, purchasing a property that already possesses a tourist licence remains the only option for aspiring landlords.

The application process for a tourist licence varies significantly between regions, but here are some general steps to follow:

1. Check Local Regulations: Before anything else, verify with your local Town Hall or Comunidad Autónoma what the specific requirements are for your region.
2. Apply Through Official Channels: You'll typically need to submit your application and accompanying documentation to the local Tourism Registry or equivalent authority.
3. Prepare Your Property: It must comply with safety and quality standards applicable to your area.
4. Submit Documentation: This usually includes a deed of ownership or equivalent, cadastral certificate, and proof that your property is free from fines and legally habitable.
5. Inspection: In some cases, an inspection of the property may be required before approval.
6. Receive Licence: If your application is successful, you'll receive a licence number that must be displayed on all rental advertisements.

Requirements of the property

Property requirements again depend on the region, but they typically include:

• Documentation: A deed of ownership, cadastral documentation, and a certificate of occupancy are often required.
• Safety: Working smoke detectors, emergency contact numbers, fire extinguishers, and first aid kits are standard.
• Insurance: It's imperative to have public liability insurance to cover accidents or injuries.

How much does it cost?

The cost to apply for a tourist licence can range from as little as nothing to a few hundred euros, depending on the region and specific requirements.

General regional requirements

The criteria and regulations surrounding holiday lets fluctuate not just between autonomous communities but also between cities and rural areas within those communities. Let's explore a few examples to underline the diversity of requirements across Spain:

Andalusia

• Short-term lets capped at two months.
• The option to rent out individual rooms, provided the owner resides in the property.
• Mandatory external ventilation, temperature control, and a declaration of responsibility by the owner.

Valencian Community

• Properties require an urbanistic certificate to confirm your property is suitable for touristic rentals obtainable from the local Town Hall for a fee.
• Renting out properties room by room is not permitted; it must be let out in its entirety.
• Signage, confirming registration with the Tourism registry, be displayed outside the property.

Catalonia

• Let durations cannot exceed one month.
• A habitability certificate is requisite.
• Prior notification to the local town hall for each new set of guests is required.

Canary Islands

• This region’s approach to holiday lets focuses on ensuring temporary, whole-property rentals only. Each island might impose additional rules, stressing the importance of consulting local town halls before proceeding.

Madrid

• The acquisition of a certificate of suitability for housing tourists by an authorised architect.
• Informing the local town hall about each new rental.

Balearic Islands

• The Balearic Islands have a unique system where you purchase a licence for the number of guests you intend to accommodate. Restrictions apply to the number of properties you can rent out and potentially the duration of holiday lets.

The examples above underscore the variability in regulations across Spain. Other regions, such as the Balearic Islands and Extremadura, possess their own unique sets of rules that can further complicate the application process for a tourist licence. It is pivotal to research and understand the specific requirements of the region where your property is located. This cannot be overstated, as compliance with local regulations is essential for the legal operation of holiday lets.

The importance of neighbourhood communities in the application process

An often-overlooked aspect of securing a tourist licence is the role of neighbourhood communities. Especially in regions like Andalusia, opposition from local communities can derail your application. This highlights the necessity of fostering good relationships with your neighbours and ensuring your holiday letting activities align with community standards and expectations.

Renting out your property: When and how

You're allowed to commence renting out your property from the moment your application is submitted to the Tourism authorities. Registration codes, necessary for advertising your offering, are typically issued upon application submission in Andalucía and Murcia, with the Comunidad Valenciana taking slightly longer.

Duties of the property owner

With the licence comes responsibility. Landlords are obligated to maintain an accessible complaints form, report tenant identities to local law enforcement for every rental cycle, and in certain regions, like the Comunidad Valenciana and Murcia, display a visible sign identifying the property as a touristic accommodation. Additionally, holding civil liability insurance is a requisite in some areas to cover potential damages during rentals.

Taxation: Not to be forgotten

Owning a touristic rental property isn't just about managing bookings; it's also about staying compliant with Spanish tax laws. Landlords must file quarterly tax returns on income generated from rentals and can deduct certain costs if they are tax residents of the EU. It's crucial to be aware that generating rental income in Spain mandates taxation in Spain, and this income may also need to be declared in your home country.

Securing a tourist licence for your apartment may seem daunting at first, but with research and proper preparation, it can be a straightforward process. Ensure your property meets all requirements, understand the costs involved, and always remain compliant with tax obligations. With these steps, you can turn your Spanish home into a successful vacation haven for travellers and a valuable source of revenue for yourself. Whether you're just embarking on this journey or looking to streamline your existing operations, staying informed and seeking professional advice will safeguard your interests and contribute to a thriving rental business. Why not reach out to legal experts who can assist you with tourist license application?