AirbnB has ruffled a large number of feathers across the globe recently, let alone just in Spain. Many people bought a villa or apartment in Spain with the view to renting it out to help pay the ongoing expenses of owning a property. Technically, there was always a need to declare this "black" income irrespective of whether you rented it privately or via many of the online rental portals such as Airbnb or Homes Abroad for example. It is income, and as we all know, the one thing governments love, is to tax someone on ANY income they may earn, no matter how small. In Spain, there is no exception to that rule yet many thousands of people across Spain were renting without taking much notice to the regulations, basically because they thought "how could the authorities track it" and a more important question was, did they have the manpower to apply any fines when the amounts involved were relatively small. It was, therefore, a case of live and let live. The authorities knew it happened but were powerless to monitor and control it. Everything was going nicely, everyone was happy, and then Mr "AirBnB" came along and put the spanner in the works, and not just at private holiday rental level! With everyone jumping on the wagon, people started renting out their properties in areas where there was intensive tourism and hotel space was at a premium, eager to earn money from their unused rooms. All seemed quiet on the western front as they say, until the hotel associations of major cities began complaining to local authorities about the injustice of them paying tax on their income, yet private individuals, earning lots of money for renting their rooms in locations like Barcelona, Mad, id and Majorca, got away scot free! The net result was, just like the phoenix out of the ashes, the rebirth of the "Holiday Rental License". Many associations in Barcelona, Madrid and Majorca joined forces and as a first step, people who owned properties were not allowed to offer them for short term rental. In Palma, Majorca, the renting of apartments is banned completely in the summer season and in Barcelona, the number of inspectors employed to combat short term unlicensed renting has doubled. This led to the Barcelona authorities fining Airbnb €600,000 for allowing unlicensed properties to be advertised on their portal. It seems therefore the authorities are determined to crack down on this industry in the short term, so how can someone get “in line” with the Spanish legal system?
Properties That Require A Holiday Rental License
Licenses are required for all types of holiday properties including apartments, studio apartments, villas, chalets, bungalows, and similar. A license is not required for properties for rents of more than 1-2 months. Once you apply and receive your license, you then have to comply with Decree 92/2009 which sets out the technical/physical requirements of the property. This decree was partially modified by Decree 75/2015.
All License holders must possess Public Liability Insurance (accident, theft etc).
Any income derived from holiday rentals must be declared in your annual tax returns (see your lawyer/gestor for further information).
If you manage more than 5 properties, then you must register as a company.
When you advertise your property, you must always display your license details. You can apply for the license in any government administrative office, but it is recommended to use one of the following offices below. Process 1. Obtain the necessary forms. 2. The holder of the license needs to obtain a user ID and password from the police so they can enter online the name of each person who stays in the premises 3. The applicant then needs a "Declaration of Second Occupation" and a plan of the property drawn by an Architect. 4. These papers are then sent by registered post to: Alicante Registro del Servicio Territorial de Turismo C/ Churruca, 29 03003 Alicante and the procedure normally takes three months to process. 5. Inspectors will require the following information if they call on you:
- Copy of Title Deeds
- Receipt for IBI
- First Occupation License
- Police Registration of the property
Please Note: This article is only a GUIDE to the rules for applying for a holiday rental license in our area, and should no way take precedence over obtaining the correct legal professional advice of your Lawyer or Gestor. Many areas of Spain have differing rules and regulations on the requirements for Tourist License Approval.