Purchasing a house in Spain with the intention of renting it out and earning a nice return is undoubtedly a smart plan! However, you must be aware of the regulations surrounding vacation rentals. For years, we’ve been managing the rental of dozens of vacation homes, so we know exactly what you need to take into account.
A bit of history
For years, it has been mandatory to register the vacation home you want to rent out with the municipality and the Junta de Andalucía in order to obtain a permit to legally rent your property. You also need to apply for a registration number with the police so you can report your guests’ details. Additionally, you must meet certain quality requirements, such as providing a first aid kit, fire extinguisher, and welcome booklet. Of course, you also need insurance and must pay taxes.
What’s happening now?
Like cities around the world, Spanish cities have faced an enormous influx of tourists in recent years. On top of that, housing prices have risen significantly. Many residents feel that the balance in their communities has been disrupted. Cities like New York are trying to restore this balance by banning Airbnb altogether; Amsterdam has set limits on the number of days properties can be rented to tourists; and Venice now charges an entry fee. Everywhere, governments are looking for solutions to make tourism sustainable for everyone. Spain is now introducing new laws and regulations to better regulate vacation rental offerings.
What are the latest rules?
The rules vary by region and sometimes even by municipality. On the Costa del Sol, the following regulations currently apply:
Does this mean renting out a property on the Costa del Sol is no longer profitable? Absolutely not! It just requires— as you can see— quite a bit of paperwork and coordination with various parties before a property can be rented out legally. This process is thorough and often requires professional assistance. But don’t let that deter you! With the right approach, rental returns on properties in Costa del Sol remain high.
If you’re planning to invest in a property for rental purposes, we’re happy to advise you! We know the right authorities, speak the language, and stay up-to-date on all current laws and regulations so that you can rent out your property without any issues!
A bit of history
For years, it has been mandatory to register the vacation home you want to rent out with the municipality and the Junta de Andalucía in order to obtain a permit to legally rent your property. You also need to apply for a registration number with the police so you can report your guests’ details. Additionally, you must meet certain quality requirements, such as providing a first aid kit, fire extinguisher, and welcome booklet. Of course, you also need insurance and must pay taxes.
What’s happening now?
Like cities around the world, Spanish cities have faced an enormous influx of tourists in recent years. On top of that, housing prices have risen significantly. Many residents feel that the balance in their communities has been disrupted. Cities like New York are trying to restore this balance by banning Airbnb altogether; Amsterdam has set limits on the number of days properties can be rented to tourists; and Venice now charges an entry fee. Everywhere, governments are looking for solutions to make tourism sustainable for everyone. Spain is now introducing new laws and regulations to better regulate vacation rental offerings.
What are the latest rules?
The rules vary by region and sometimes even by municipality. On the Costa del Sol, the following regulations currently apply:
- The statutes of the Homeowners Association must explicitly allow rentals. More than half of the owners must agree to this.
- If you already have a rental permit, there’s no issue. However, whether these permits are transferable is still unclear at this time.
- Every guest must be registered with Seshospedajes, a government institution.
- If you rent through a company, the rental company must submit a rental contract to the municipality so they are aware of who is responsible for the property.
- For new-build properties within an urbanization or complex with a Homeowners Association, make sure to join the board and bring this topic up at the first meeting. If more than half of the owners vote in favour, you can apply for a rental permit.
- For existing properties within a community, try scheduling an additional meeting to discuss this matter. Otherwise, you’ll need to wait until the next scheduled meeting and hope this topic is addressed.
Does this mean renting out a property on the Costa del Sol is no longer profitable? Absolutely not! It just requires— as you can see— quite a bit of paperwork and coordination with various parties before a property can be rented out legally. This process is thorough and often requires professional assistance. But don’t let that deter you! With the right approach, rental returns on properties in Costa del Sol remain high.
If you’re planning to invest in a property for rental purposes, we’re happy to advise you! We know the right authorities, speak the language, and stay up-to-date on all current laws and regulations so that you can rent out your property without any issues!
