9 Important requirements when renting out your property in Spain

01.09.2022

9 important requirements to consider when renting out an apartment or house in the Autonomous Community of Valencia (Spain)

Are you the owner of an apartment or family home in the Autonomous Community of Valencia (Costa Blanca region: Valencia, Alicante and Torrevieja - Spain) and do you wish to rent it out as a holiday home? We have briefly listed the most important requirements that you should take into account when you rent out a property as a holiday home.

You cannot choose to rent out only a few rooms. If you only want to rent out rooms, it is better to register yourself as a Casa Rural or hotel. Only renting out a room will be a crime in the Comunidad Valenciana from March 2021. The turnaround time for applying for a Casa Rural (b&b) permit is 2-6 years, depending on the region, the area (urban or rural) the project and where the Casa Rural is located.

Step-by-step plan for renting out an apartment or house in Spain

The registration number for each property and category must be included in any advertisements or advertisements made of the property. If the house is rented out by an administration office that rents out more apartments in the same building, it is sufficient to state the registration number of that company. Registered holiday homes in Valencia must show the relevant identification of the holiday home, category and registration number in a visible place on arrival, on the inside or outside.
It is not possible to rent out a room or several rooms of the apartment as a holiday home. The owner is also not allowed to stay in the rented house himself. The property must therefore be rented out as a unit.
The Spanish property in Valencia must be in a perfect state of habitability, commensurate with the category in which the type of property falls.
The property must be well maintained, clean and equipped with the necessary services from the day of rental. Utilities and other installations must work properly.
In advertisements, the quotation and other publicity around the tourist home, it is truthfully offered in the state in which the home is in reality. Sufficient information must be provided to the customer about the features, the conditions of use and the benefits of the services adopted.
Tourist residences must be classified according to their category: higher category, first category and standard. Please note that the installations and services of holiday homes must be maintained at all times in the conditions, requirements and qualities determined according to the classification and category.
According to Decree 19/1997, of 11 February, of the Regional Government (the Consell), all owners of holiday homes are obliged to provide customers with an invoice clearly stating the total price and the prices for the various services. The holiday homes are obliged to keep a duplicate of the invoice in their records so that the competent authorities can verify it if necessary. The invoice must state the name of the holiday home, the name of the client, the identification number of the holiday home and the number of people staying and the date of arrival and departure.
As the owner of the holiday home, you can demand a deposit in advance that may not exceed €250, but not if otherwise agreed. This deposit is also stated in the specification of an increase in the number of people in the holiday home. If the house is rented by more people than stated in the contract for the agreed price, the contract will be terminated. Pursuant to the terms of the contract, and after the contract is terminated upon termination of the rental, the security deposit will be refunded to the customers after deduction of any applicable deductions if everything is in order.
Pursuant to Law 3/1998, of 21 May, of the Generalitat, on Tourism in the Autonomous Community of Valencia, fines for failure to comply with these requirements are between €600 and €90,000, depending on the seriousness of the violation

What else is involved if you want to rent out your property in Spain?

It goes too much into detail in this blog, to mention all the other things that come into play when you decide to rent out your home. Be sure to be advised by a lawyer who is familiar with the most recent tax and legal rules regarding renting out in Spain and also specifically for your region. The rental rules in Spain are arranged per region.

These are the points, broadly described, that must also be picked up when renting out in Spain

Certificate of Conformity, Cedula de Habitabilidad or Declaración responsable de segunda ocupación. This test shows that your home meets the requirements. without this you can't rent a document
Plan General de Ordenación Urbanistica. The municipality assesses the compatibility of your rental activity with the urban development plan. The Visito Bueno is the permission of the municipality that you regularly rent out to tourists.
Apply for a rental license at the Registro del Servicio Territorial de Turismo. You can do this once the Visito Bueno and the Certificate of Conformity have been obtained. In this you declare that your home meets the required tourist legislation.
After permission and obtaining the license, you will receive a registration number and a sign. This sign must be clearly attached at the entrance of the house.
You must register with the local police to request your login details for the registration of your guests.
You pay 19% 'non-resident tax' on your rental income. You are also obliged to charge VAT to your tenants. (3 monthly declaration)

_{Disclaimer

The information in this blog is for general information purposes only. While we strive to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy or reliability, with respect to this information for any purpose. . Any reliance you place on such information is therefore strictly at your own risk. We are not experts in tax and legal matters. You must therefore check all information yourself for completeness and correctness. We therefore strongly advise you to hire a registered lawyer to support you in this. If you wish, we can recommend a Dutch-speaking lawyer who lives and works in Spain.}