Renting out your home in Spain - what you need to know!!!!

The new regulation obliges the owner to register his property and guarantee some minimal requirements for the comfort of the visitors.

With the objective to avoid fraud and bring to light the more that 80,000 clandestine holiday rentals only in Andalusia, the Regional government in this part of Spain, the Junta de Andalucia, has passed a new law for touristic houses.

Learn its highlights:

Who is Obliged: Houses, apartments in urban ground that are rented for holiday periods via websites, travel agency, adverts, etc… The rental is considered to be a holiday letting if guests stay for less that 2 months.

Registration: As from May,11th 2016, owners are required to register their holiday apartment in the Census of Tourism in Andalusia.

Once the registration is completed the property is assigned a license number that must be shown in every advert and promotional activity. Putting up a “for rent” sign or advertise in news papers without this number will become a risky situation since unregistered apartments will be considered clandestine.

Requisites: The law states some requisites that are necessary for the obtaining of the license.

· First-occupancy license. This is a certificate give to every building for housing that shows that it is appropriate for lodging.

· Correct ventilation. The apartment must have A/C available in living room and every bedroom from May to September, and enough heat for winter months. Every room must have windows or a system to ensure air renewal.

· A minimum of equipment: furniture, bedclothes,…

· Cleaning services at the entrance and exit of visitors,

· Medical kit

· Official complain books,

· touristic information: map of the area, relevant places, medical centre, restaurants…

· Telephone number available for incidences during the rental.

Failing to meet these requirements can lead to a official complaint of the guest, which in turns it can trigger a fine.After registration, an allowance of 1 year will be given to those who need to undergo major reform to comply with the requisites, for instance, installing A/C or ensuring ventilation.

Contract:
The visitor must sign a contract containing personal details, period of rental, price, etc…

Number of people:
The legal maximum is 4 people per room, not surpassing 15 guests per property.

Registry of travelers: In a similar way to a hotel, from now on, owner have to report the name and other details of travelers, including photocopy of every traveler’s passport. These should be kept for 1 year, passport and copy of contract, at the disposal of any authority who may request it.

The Law specifies that this is mainly done for public security reasons in view of the relevance that the supervision of travelers has in current global society.

Penalties:
Junta de Andalucia is determined to reinforce this law. At the moment they are negotiations with the major renting websites in order that they only advertise houses included in the census.

The law rules penalties of up to 18,000€ for serious faults and up to 150,000€ for very serious faults. Inspectors will be checking adverts very soon.

FAQ

1.What is considered to be a touristic apartment?
Any real estate of Andalusia located din urban area that is offered for rent for a price determined by its owner and it is advertised through tourism channels ,such as travel agencies, online platforms, etc…
This norm does not affect:

· rural houses, ruled by its own law.

· groups of apartments owned by the same individual

· long-term holiday rentals. (longer than 2 months)

2.What if I only rented in summer ( or any other season)? Should I registered?
Yes. Even if you do not advertise it online.

3.How can I register my apartment?
The registration involves the filling of a “Declaration Responsable” (acknowledgement of responsibility) and present the requested information in the Tourism Dept in your province.
In LimitConsulting we have prepare a Registration Pack that will allow you to concentrate in your rental business with all peace of mind.

4.Do I have to become a self-employed? How is my business taxed?
There is no need to register as self-employed. No social security payment is required.
Tax residents declare their income annually through their tax return (RENTA)
Nonresidents need to file a tax form every quarter in which there is a rental.

5.Can I rent only a room in my own residency?
Yes. The requirements and paperwork is the same in this cases. It is mandatory that the owner resides in the house. In other words, you cannot rent a property by rooms unless it is your own residency.

6.Do I have to make a contract and collect passport of everyone, even for 1 night?
Yes. Hotels, for example, need to send this information to local police for every booking. There is not pronunciation on the matter by the police at the moment, but it is a possibility. For the moment, all passports and booking information must be kept for one year.