Rental Guide
Holiday Home Rentals on the Costa del Sol: Everything You Need to Know
Registration and Licenses
Mandatory Registration: Holiday rentals must be registered with the Andalusian Register for Tourist Accommodations.
Licenses: Required from the municipality and Homeowners' Association.
Standards and Facilities
Minimum Area: 14 m² per occupant, minimum total of 25 m².
Bathrooms: Two bathrooms for more than five guests, three bathrooms for more than eight guests.
Air Conditioning and Heating: Mandatory during summer and winter months.
Facilities: Full kitchen equipment, bedding, first aid kit, smoke detectors, fire extinguisher.
Ventilation and Furniture: Adequate ventilation and suitable furniture for the number of guests.
Taxes and Fees
Tourist Tax: Landlords are responsible for collection and remittance.
Income Tax: 19% tax on net rental income for non-residents within the EU.
Digital Platforms and Compliance
Platform Responsibilities: Ensure properties comply with local regulations and are registered.
Examples of Platforms: Airbnb, Booking.com, Vrbo.
Data Sharing: Platforms must share data with tax authorities.
Sustainability and Energy Efficiency
Energy Certificate: Mandatory for all rental properties.
Environmental Initiatives: Incentives for sustainability such as recycling and water conservation.
Social Impact and Communities
Protection of Local Communities: Restrictions in crowded tourist areas to prevent overtourism and disruption.
Community Communication: Collaborate with local communities to minimize disturbances and consider their feedback.
Group Restrictions: Consider limits on group size and rental periods to prevent overtourism.
Better Relationships: Good compliance and cooperation with the local community can lead to positive reviews and long-term rental relationships.
Fines and Enforcement
Strict Enforcement: Fines up to €150,000 for non-compliance.
Inspection and Control: Increased inspections by local authorities.
These new regulations aim to enhance the quality and safety of holiday rentals, increase tax revenues, and minimize negative impacts on local communities and the environment. Landlords in Costa del Sol and across Spain should be aware of these changes to avoid legal and financial issues.
General Steps to Obtain a Rental License
Research and Planning
Identify the specific rules and regulations applicable to holiday rentals in the municipality where you intend to operate. Check for specific requirements related to the type of property (apartment, villa, etc.) and its location (urban area, coastal area, etc.).
Meeting Technical and Safety Requirements
Ensure the accommodation complies with technical and safety requirements mandated for rental properties, such as fire safety, sanitary facilities, and accessibility.
Administrative Procedures
Contact the local municipality (Ayuntamiento) or town hall to ascertain the specific procedures for applying for a rental license. Gather all required documents, such as property deeds, proof of compliance with technical standards, and any taxes or fees.
Registration with Tourism Authority
Depending on the region, you may need to register with the regional tourism authority (for example, in Andalusia, with the Junta de Andalucía).
Tax Registration and Payment
Ensure you are informed about all taxes applicable to holiday rentals, such as tourist tax or income taxes on rental earnings.
Inspections and Approval
After submitting your application, an inspection may be conducted to verify compliance with the established requirements. Once all documents are approved and all conditions are met, you will typically receive your rental license.
Challenges by Area on the Costa del Sol
Popular Tourist Destinations (e.g., Marbella, Malaga)
High competition and demand for rental accommodations may lead to stricter rules and procedures. Higher costs and taxes may be incurred due to the popularity of the area.
Rural Areas and Villages
Less stringent regulations, but potentially lower demand for holiday rentals. Access to amenities and infrastructure may be challenging, especially in remote areas.
Coastal Areas
Stricter environmental protection measures may influence the type and number of rental licenses issued. Seasonal fluctuations in tourism can affect demand for holiday rentals.
Urban Areas
Limited availability of parking and pressure on local amenities due to the number of tourists can pose challenges. There may be stricter noise and disturbance regulations due to proximity to other residents.
Each area on the Costa del Sol presents its own unique challenges and considerations when obtaining a rental license. It is essential to conduct thorough research and contact local authorities to fully understand requirements and overcome any obstacles when starting a holiday rental activity.
Laws and Regulations for Real Estate Investments on the Costa del Sol
Purchase Process
NIE Number: Foreign buyers must obtain an NIE (Número de Identificación de Extranjero), an identification number for non-Spanish citizens.
Lawyer: It is highly recommended to engage a local lawyer for guidance during the purchase process, including contracts and legal verification.
Deposit: After signing a preliminary purchase contract, a deposit of usually 10% of the purchase price is typically required.
Notary: The final purchase takes place at the notary's office, where the deed of sale (escritura pública) is signed, and the remaining purchase price is paid.
Taxes and Costs
Transfer Tax: Varies between 8-10% of the purchase price for existing homes. For new builds, a VAT rate (IVA) of 10% applies, along with stamp duty (Actos Jurídicos Documentados) of 1.5%.
Notary Fees: Vary depending on the purchase price, usually between 0.5-1% of the purchase price.
Registration Fees: Costs for registering the property deed in the property register, often around 1% of the purchase price.
Annual Property Tax (IBI): Levied by the local municipality based on the cadastral value of the property.
Rental Income and Taxes
Registration: Holiday rentals must be registered with the Andalusian government, including obtaining a license and meeting specific requirements such as minimum amenities.
Income Tax: Foreign landlords must pay income tax on rental earnings. For non-residents, this is typically 19% of net rental income within the EU.
Community Tax: Owners in communities pay community taxes for maintenance and services of common areas.
Property Rights
Title Deed: Spanish property rights are well protected and documented. It is important to ensure a clear title without legal conflicts.
Heirs and Wills: Foreign owners are advised to draft a Spanish will to facilitate the settlement of estates in Spain after death.
Financing
Mortgages: Foreign buyers can obtain mortgages in Spain, often up to 60-70% of the purchase price. Spanish banks typically require proof of income and financial stability.
Interest Rates: Spanish mortgage interest rates can vary, and it is advisable to compare different offers.
Legal Obligations
Energy Certificate: An energy certificate indicating the energy efficiency of the property is mandatory for sale or rental.
Rental Obligations: Landlords must ensure basic amenities and safety standards in their holiday rentals.
Contact Us
Phone number: +34 644 404 123
E-mailadress: info@halconesrents.com
Location
Calle cristo 32
29700 Velez-Malaga