Are you renting one or more properties as holiday accommodations in Spain? Then you need to comply with several requirements from both the Tax Agency and the Tourism Department at your Comunidad Autónoma.

You should be aware that the Tourism Departments are nowadays taking their inspection duties more seriously and that they are more actively demanding compliance with the current legislation.

Therefore, if you are advertising your property and / or renting it at least twice during more than 1 month throughout the year, then you must fulfil the following requirements from the Tourism Department:

Obligations

  • Both companies and individuals must register with the Tourism Department at their Comunidad Autónoma. Registration is mandatory prior to the renting of the property and non-compliance may be sanctioned. Any subsequent changes must be also communicated to the Tourism Department.

  • Clients must be logged in the Registry Book before receiving the property’s keys. This information must be submitted to the Police every time that a tenant checks in, so previous registration with the Police is also compulsory.

Property’s requirements and classification

Rented properties ought to comply with a list of minimum requirements. They will be classified according to the services provided, among other features.

Labels and advertising

  • Each property must be properly identified by a standardized plate, which must also display the property’s category.

  • It is forbidden to rent or to advertise properties whose “Declaration of Start of Activities” hasn’t been filed and a civil liability insurance is compulsory.

Sanctions and fines

Any breach of these obligations set by the regulation may be sanctioned with fines that may range from 1 € to 150.000 €, as well as other accessory penalties.

Fiscal implications

  • For Non-residents: Rental incomes must be declared every three months, in addition to the yearly Non-Resident Declaration.

  • For Residents in Spain: the income will be included in your yearly Income Tax Return (IRPF).

  • There are some deductible expenses, such as mortgage interests, council tax (IBI), maintenance, insurance, community fees, agency fees, etc.

If you need more information or advice about the legal requirements for vacation rentals, please feel free to contact us at info@lssolicitors.es and we will be glad to assist you.