The Spanish holiday rental market is as strong, as ever and with Spain being the number 1 holiday destination it is easy to see why more and more people are purchasing Spanish properties for tourist Rental. The renting of Spanish properties to holiday makers creates a high profitability income for the owner. The most popular types of properties for holiday rental in Spain are; apartments, villas, bungalows, studios and flats in Spanish houses.
People investing in Spanish properties in tourist resorts, can expect higher occupancy and higher rental income in the holiday season. The income of some rental properties over the peak holiday season; can indeed pay for the running of the property for the whole year.
Holiday rental licenses are required for all types of properties including Apartments, Studio apartments, Villas, Chalets, Bungalows and Town Houses.
A license is not required for Spanish properties that are rented long term of more that 1-2 months
Illegal rentals of properties in Spain will be subject to a hefty fine.
· Property Escritura (Title Deeds)
· Habitation Certificate
· Passport or NIE
· Suma (Council Tax Bill)
· You must request the Declaracion Responsible registration form from the Territorial Tourism Service, alternatively download the Declaracion Responsible registration form.
· Fill out the application form and take it to the post office addressed to your nearest Registro del Servicio Territorial de Servicio Office. Make sure that the post office stamps and dates you’re application before it is sent.
· Once your Spanish Property is registered, you MUST include the license number, category type and code in all advertising of your property.
Once you have applied and received your Holiday Rental License, you then have to comply with the decree set out by Spanish law, which lays out the technical and physical requirements of the property.
There are 3 types of tourist rentals, which are classified according to the facilities available to guests.
It is important to insure your Spanish Holiday home; not only to protect it from accidental damage from holiday renters, but also from damage that may occur from storms, fire or theft or water damage. Having peace of mind for the safety of your Spanish Holiday property is priceless. Especially when you are not on hand to deal with any problems or emergencies that may occur.
Many Online insurers based in the U.K do not understand the insurance process in Spain, leaving it hard to make claims and deal with Spanish contractors or property litigation. We therefore recommend www.insuranceinspain.com. Their fully qualified English and Spanish speaking team can help you find the best insurance cover for you, whether it be, Holiday home insurance or Landlord and letting Insurance in Spain.
Owners of Rental property in Spain are liable to Pay Spanish Tax regardless if they are resident or a non-resident of Spain.
The current Spanish rental income tax is 24% of net profit. Residents of the EU are charged a tax rate of 19% of the net profit and can deduct expenses against the rental income for expenses directly linked to the rental income generated from the property.
Barcelona is of the Spanish cities with the most restrictions on Holiday Rental properties. The restrictions that have been put in place, include
· Owners must have a Holiday tourist License
· Property can not be rented for more than 120 days per year
· Tourists that rent a holiday rental property, musty pay a tourist tax
· Owners must have a Holiday Tourist License
· Properties can only be rented for a maximum of 90 days per year
· Holiday rentals must have a separate entrance, thus making it impossible to rent a single flat located in an apartment building or town house
· Owners must have a Holiday Tourist Licence
· Property can only be rented for up to 60 days per year
· The city authorities have banned the rental of apartments in the City centre
Updated June 2020