Getting a Holiday Rental Licence in Spain

August 2024

If you’re set on renting out one or more of your properties as holiday rentals, you’ll need to comply with a series of legal requirements at a regional and/or local level. In Spain, the central government handed over regulation of holiday rentals to the autonomous communities over a decade ago, and some of these, through decrees passed in their parliaments, have done the same with local councils. This is the case, for example, in Andalusia, which has the most holiday homes, flats, and apartments in Spain.

Therefore, before you start renting out your property and looking for ways to promote and market it, you need to check if it meets the requirements set out in your area. Pay attention because the steps before renting are especially important, and you need to be thorough. Join us in this article and take note of the steps to follow.

What is a Holiday Rental Licence?

What exactly is a holiday rental licence? It’s a permit granted by public administrations to the owner or host of a property to operate it as a holiday rental. In the Spanish destinations with the highest influx of travellers, those key areas, local councils are usually the ones regulating holiday rental activity and issuing permits. In other areas, it’s the autonomous communities that set the legal framework.

So, your first task is to find out which authority is in charge. If it’s the autonomous community, they’ll likely have a special website for gathering information on the matter; and if it’s the local council, it might be more reliable to visit the tourism or urban planning offices at your town hall. There, a technician can break down all the holiday rental requirements so you can get your property up and running.

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Define Your Type of Rental and Start the Paperwork

Step one: identify what type of holiday rental yours is. In some autonomous communities or local councils, there is only one type, but there may be two or three, depending on your location, the type of use, or whether it’s a rural or urban rental. Once you’ve classified your holiday home, let’s look at some common requirements for all holiday homes.

Proof of Ownership

It might seem obvious to say, but to get a holiday rental licence, you’ll need to prove ownership and verify it with the property deeds and relevant registrations. You’ll also need to prove that it meets safety and habitability obligations and that all rooms meet the minimum required dimensions. Additionally, you must have insurance that covers both your holiday rental activity and the property. Liability insurance is mandatory and crucial in case of any accident or mishap. This way, you can protect third parties, i.e., your guests.

But that’s not all; here are some other obligations to keep in mind:

• Be up-to-date with the tax office. If you want to start —or continue— your activity as a holiday rental owner, the authorities will require you to be up-to-date with your obligations to the Tax Agency. You can’t have outstanding debts. Your accounts with the authorities must be in good order; otherwise, they could deny or revoke your rental licence.
• Comply with all established regulations. Regional laws and local ordinances might differ, but holiday rentals must always have an updated licence and other permits, such as an opening licence and a first occupation licence. And if you have a large capacity property and host guests, it’s especially important to check if you need to include your property in the relevant census.
• Keep an organised file of your documents. Proving that everything is in order with the authorities can be tedious and time-consuming, but it’s best to take it easy, avoid unnecessary hassle, and keep all your documentation organised, easily accessible, and ready to go.

Self-Management or Professional Advice?

Another big question is whether to manage the process yourself or hire specialised professional services to handle the paperwork. The answer depends on your skills and abilities. You can do it yourself, but if you prefer a professional service to avoid mistakes and streamline the process, investing in an agency is a good option. Their knowledge will give you peace of mind and ensure you get your holiday rental licence on time.

Keep in mind that to get the licence and avoid issues with the authorities, the most important thing is to comply with the regulations, which can change, and the corresponding decrees. A properly licensed holiday rental inspires trust and professionalism.

What Happens if I Don’t Get a Holiday Rental Licence?

Getting a holiday rental licence is key to complying with the law and avoiding fines from the authorities. Like paying taxes, the main benefit is being trustworthy to travellers and offering a safe, secure experience. Compliance increases guest trust and satisfaction, and with these aspects covered, your holiday rental activity will run smoothly. In Spain, the Tax Agency has a digital portal where you can check if everything is in order and seek advice on requirements.

And if you need more advice, feel free to contact us. We’re here to help.

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