Andalucía, this beautiful region in southern Spain, attracts millions of tourists each year with its rich cultural heritage, stunning beaches, and vibrant cities. As a result, the demand for short-term rentals, such as vacation homes and apartments, has been on the rise. However, to regulate this growing market and ensure a fair and safe experience for both hosts and guests, the Junta de Andalucía has implemented specific regulations regarding short-term rental licenses. In this article, we will explore the requirements, application process, and key considerations for obtaining a short-term rental license in Andalucía.
The Legal Framework on Short-term rental in Andalusia:
The Junta de Andalucía introduced Decree 28/2016, (Decreto 28/2016, de 2 de febrero) which regulates the use of homes for tourism purposes in Andalucía. This decree requires all properties used for short-term rentals to obtain a license, ensuring compliance with specific safety, quality, and legal standards. The main objective of this legislation is to create a fair and competitive market that protects the interests of both hosts and guests. The RTA Registro de Turismo de Andalucía sees to that all properties comply with the minimum quality requirements.
What types of Short-Term Rental Licenses are there in The Decree 28/2016?
This decree categorizes short-term rentals into two main types:
a. Viviendas con Fines Turísticos (VFT): These are properties that are exclusively used for tourism purposes and are rented out for short stays. Owners of VFT properties must obtain a license from the Andalusian Tourism Registry.
b. Apartamentos Turísticos (AT): These are properties located within tourist apartment complexes that offer additional facilities and services such as reception areas, restaurants, and swimming pools. The license for AT properties is obtained through the Dirección General de Turismo.
What are the requirements for obtaining a Short-Term Rental License?
To obtain a short-term rental license in Andalucía, hosts must fulfil certain requirements. These include:
a. Property Compliance: The property must comply with safety regulations and meet certain minimum standards regarding health, hygiene, and accessibility.
b. Tax Registration: Hosts are required to register with the Spanish tax authorities and obtain a tax identification number (NIE) to declare rental income and pay applicable taxes. When it comes to declaring short term rental income for non-residents the obligation is to declare the rental income quarterly during the current year. One tax form per owner. Spanish residents declare the short -term rental income in their yearly personal income tax declaration. See further information below.
c. Liability Insurance: Hosts must have liability insurance coverage for any potential damage caused by guests during their stay.
d. Consent of Community of Owners: If the property is part of a community of owners (common in apartment buildings or residential complexes), the host must obtain the community’s authorization for short-term rentals.
The process of obtaining a short-term rental license in Andalucía involves several steps:
a. Property Registration: Hosts need to register their property with the Andalusian Tourism Registry or the Dirección General de Turismo, depending on the type of license they are seeking and also with the National Police or Guardia Civil.
b. Documentation Submission: Applicants must submit various documents, including purchase deeds of the property, proof of compliance with safety regulations, tax registration details, liability insurance certificates, and First Occupation License (Licencia de Primera Ocupación) for urban properties among others.
c. Inspection: In some cases, a representative from the tourism authority may conduct an inspection of the property to ensure compliance with regulations.
d. License Issuance: First you will obtain a provisional permit, and once all requirements are met and the application is approved, the license is issued, allowing the property to be legally rented out for short-term stays.
Are there penalties for Non-Compliance?
Failure to comply with the regulations can result in penalties and fines. The Junta de Andalucía has established a system of sanctions, which may include temporary or permanent closure of the property and significant financial penalties. It is essential for hosts to understand and adhere to the licensing requirements to avoid any legal consequences.
Key Considerations for Short-Term Rental Hosts:
Apart from obtaining a short-term rental license, there are additional considerations that hosts in Andalucía should keep in mind:
Obligations & expenses for holiday rentals
- Rental license: First of all, without a rental license you are excluded from rental sites like AirBNB, Bookings.com, Spain-Holiday, etc.
- Guardia Civil or National Police: Secondly, every booking must be reported online to the Guardia Civil within 24 hours of arrival, just like a hotel booking. The paperwork (contract with signature plus copy of the passports) must be kept for 3 years in case of an inspection.
- Income tax: Thirdly, you are to pay tax over your rental income. Fiscal residents in Spain do so once a year through the IRPF personal income tax declaration. Non-fiscal residents submit their IRNR income tax forms 4 times a year through a gestor (accountant). See further information below.
Income tax on rental income for Fiscal residents:
The information needed for submission of the yearly IRPF tax declaration is:
- Total Rental income received
- Expenses paid by the owner: (these amounts can be confirmed by the tax office by means of documents, invoices and certificates and need to be kept for 5 years. Expenses are deductible only for the days that the property was let.
- Rental commission agent
- Publicity costs
- Key management/maintenance
- Cleaning costs
- Electricity and water use
- Administration costs gestor / accountant
- Devaluation furniture, etc.
- Interest from mortgage loans
For the year 2022 the General Tax Base has 6different rate brackets(from 19% to 47% between 12.450€ and over 300.000€) and the Savings Tax Base has 4 brackets(from 19% to 26% between 6.000€ and over 200.000€).
If the rental agreement is long term and the property is the main residence of the tenant, you can benefit of a reduction of 60% (50% as of 2023). In this case, please provide rental contract agreement and copies of passport/s of tenant/s
Income tax on rental income for non-residents:
- Non-resident EU members submit tax form 210 quarterly for rental income based on the same criteria as the fiscal residents and are also allowed to deduct costs proportionally. (Only for the days the property was rented out), but they have a reduced tax rate of 19%.
What are the differences for UK citizens after Brexit?
There are two main changes:
Firstly, the reduced rate of 19% is not applicable for UK citizens anymore and the general rate of 24% will have to be applied instead. (As Non- EU members).
The second and most important point is that they cannot deduct any expenses from the rental income. Therefore UK citizens will have to pay 24% of the full income without being able to deduct expenses such as the IBI, depreciation, mortgage interest, community expenses, insurance, management fees, etc.
Other recommendations for Short-term rental in Andalusia
Booking Platforms: Many hosts choose to list their properties on booking platforms like Airbnb, Booking.com, or HomeAway. It is important to familiarize yourself with the platform’s terms and conditions, as well as any additional requirements they may have for listing properties in Andalucía. Bear in mind that these platforms inform the tax office of all rental bookings.
Guest Communication and Support: Providing clear and accurate information to guests is essential. It is advisable to establish communication channels and provide assistance to guests throughout their stay. This can help ensure a positive experience and encourage positive reviews, which can benefit your rental business.
Maintenance and Cleaning: Regular maintenance and thorough cleaning between guest stays are crucial for maintaining a high-quality rental experience. It is recommended to establish cleaning protocols and consider hiring professional cleaning services to meet the standards expected by guests.
What are the Benefits of Short-Term Rentals in Andalucía?
Short-term rentals in Andalucía offer numerous benefits to both hosts and guests. For hosts, it provides an opportunity to generate additional income from their properties while retaining flexibility over their own usage. It can also contribute to the local economy by attracting tourists and creating job opportunities.
For guests, short-term rentals offer a unique and authentic experience, allowing them to immerse themselves in the local culture and enjoy the comforts of a home away from home. They often provide more space and privacy compared to traditional hotels, making them particularly attractive for families or groups traveling together.
Additionally, short-term rentals can help revitalize neighbourhoods and distribute tourism more evenly, as they are often located in residential areas rather than concentrated in tourist zones.
Obtaining a short-term rental license is crucial for hosts in Andalucía who wish to rent out their properties to tourists. By complying with the licensing requirements, hosts contribute to creating a fair and safe environment for both themselves and their guests. It is important to understand the legal framework, fulfil the necessary requirements, and go through the application process diligently. By doing so, hosts can confidently operate within the regulations and enjoy the benefits of participating in the thriving short-term rental market in Andalucía. Remember, regulations may change over time, so it is essential to consult the latest information from the Junta de Andalucía or seek professional advice when considering short-term rentals in Andalucía.