Are you renting out one or more properties as holiday accommodation in Spain? Then you must comply with several requirements from both the Tax Agency and the Tourism Department at your Comunidad Autónoma.
Tourism Departments are taking their inspection duties more seriously and they are actively demanding compliance with the current laws. If you are leasing your property at least twice a year for more than 1 month in total, then you must fulfil the following requirements from the Tourism Department:
Obligations for Tourist Apartments in Spain
Registration
Registration is mandatory prior to the start of the activity, even if you are only advertising the property online. Non-compliance with the registration rules may imply a heavy fine.
- Either as a Company or as an individual, you must register with the Tourism Department at your Comunidad Autónoma. You must also communicate to them any subsequent changes about the activity that may happen.
- Clients and guests must be logged in to the Registry Book before receiving the property’s keys.
- Registration with the Police before you start renting your property out. In Spain, it is mandatory to submit the guest’s details to the Police upon check-in.
Classification
Rented properties must comply with a list of minimum requirements. They will be classified according to the services provided and the property’s features.
Labelling and advertising
- Every Tourist Apartment must be properly identified by a standardized plate, which must also display the property’s category.
- Before you rent or advertise a holiday rental, you must file for a «Declaration of Start of Activities» and get civil liability insurance.
Sanctions and fines
Any breach of these legal obligations may be sanctioned with fines that may range from 1 € to 150.000 €, as well as other accessory penalties.
Fiscal implications
- Non-residents: Rental income must be declared every three months, in addition to the yearly Non-Resident Declaration.
- Residents in Spain: the income will be included in your yearly Income Tax Return (IRPF).
- EU citizens may benefit from some deductible expenses, such as mortgage interests, council tax (IBI), maintenance, insurance, community fees, agency fees, etc.
Do you need more information about the legalities to rent your property in Murcia or Alicante? Please feel free to contact us at info@lssolicitors.es and we will be glad to assist you.
