If you have a holiday home in Spain, you have two ways of making money from it. One is to sell property Spain online and the other is to rent it out, if it is not being used by you. Renting out the property does sound like a good idea, but there are strict laws related to that, depending on which region of Spain your holiday home is located at.
Back in 2013, the Spanish government, at the behest of the local hotel companies modified the regulations related to renting out a holiday home. So now, where the holiday home is located can make all the difference. The goal of the new law was to improve the quality of the rental accommodations and make them at par with that provided by the local hoteliers.
Not adhering to the new regulations can be an expensive mistake. Fines ranging from 3,000 to 20,000 EUR have been levied on owners who fail to follow all the regulations.
A license fee needs to be paid to get the rental home registered, and this depends on the region your holiday home is in. Generally, this is between 177 to 500 EUR, but it is only a one-time fee in most regions.
It is also important to get your rental property insured. Rental insurance cover may differ in each region of Spain and all earnings have to be reported to the Spanish tax agency. If you are a resident of the UK, the earnings have to be reported to the HMRC as well.
If you are looking to sell property Spain quick, you will know that the Spanish property law is different for each of the 17 self-governing regions of Spain.
Some of the regions that are inland such as Castilla-La Mancha and don’t really get too many tourists do not have too many restrictions. But regions such as the Canary Islands, Valencia, Basque Country etc. that are very popular with tourists have strict regulations related to renting out holiday homes, which we are going to talk about here.
Catalonia, of which Barcelona is a part of, has a regulation that requires all holiday rentals in the region to be licensed. Not licensing your holiday rental could lead to hefty fines being imposed.
The Basque Country has simple rules on renting out a holiday home. You don’t need to get your rental property registered here. But we expect this law to change this year and expect to see more restrictions on renting out a property in the Basque Country.
In Valencia, there is a rule that all holiday rental properties should be registered with the Register for Tourist Businesses, Establishments and Professionals. The regulations are very strict on the amount of furnishing to be provided. After the registration of the property, homeowners will be given a registration number which has to be used in all advertising related to the holiday home – failing to do so could result in major fines.
In the Asturias, you are not allowed to rent out a holiday home for less than 30 days and the property must be rented out during July, August and September. The reason behind this is to make sure that homeowners are really serious about renting out the property and the responsibilities that come with it.
Finally, the regulations on renting out your property can get very complex in some regions of Spain. We suggest checking with the local authorities about all the rules, policies, laws and regulations that pertain to your holiday rental in that region.