Knowledge Base # 30. Renting out Your Villa – A-Z of the Valencia Tourism Licence
What is a Touristic License?
We are often asked by clients who have an idea that they want to rent out theoir property if a property for sale has a touristic licence and 99% of the time the answer is NO. This is because you would only apply for one if the property was rented out….which most are not. So this article explains what needs to be done in order to rent out properties in GENERAL. Please note that each area may have different rules and requirements, so it is something you need to check with the local town hall or your lawyer.
A touristic license is your passport to renting out your property as a delightful tourist accommodation. Unlike a fixed term, the key criterion for obtaining this license lies in the purpose of the rental. If your property is intended for holiday, leisure, or tourist purposes, a touristic license is a must-have. Additionally, if you promote it through tourism marketing channels or enlist the services of companies managing tourist accommodations, securing this license becomes essential.
When is the Touristic License Needed?
It’s crucial to note that the touristic license is not necessary if your property is leased to someone using it as their main residence, even for a short duration.
Every region has its unique regulations, and obtaining a touristic license ensures your property gets listed in the central Registry of tourist homes, accessible to the public.
For renting out your property, certain general requirements apply, regardless of location:
- All bedrooms and the living room must have direct ventilation and window-darkening systems.
- The property should be adequately furnished and equipped for immediate use.
- Hot water availability.
- A first-aid kit.
- A complaints book.
Specific requirements vary across regions. For instance, in Andalucia, a License of first occupation is mandatory. Depending on your property’s age, alternative documents may be considered. In the Valencian region, an urbanistic certificate from the Town hall is necessary, and displaying a registration sign is compulsory, much like in the region of Murcia.
Fees and Process Duration
Fees for obtaining the license differ by region. In Comunidad Valenciana and Andalucia, there may be no charge, while in Murcia, fees depend on the number of places available in the accommodation.
The processing time varies; for example, in Andalucia, online applications expedite the process, while in Comunidad Valenciana, obtaining the urbanistic certificate might extend the timeline.
When Can I Rent Out My Property?
Renting can commence once your application is submitted to the Tourism authorities. In Andalucia and Murcia, you might receive the registration code simultaneously. In Valencian areas, the final registration code may take 8 to 12 weeks, but renting can start upon application submission.
Landlords need to provide a visible sign in Murcia and Comunidad Valenciana, identifying the property as touristic accommodation. Reporting tenant identities to the Police or Guardia Civil is mandatory in all regions. In Comunidad Valenciana, civil liability insurance is required, along with a strongly advisable insurance against claims.
Change of Ownership or Deregistration
Inform the corresponding Registry of any alterations, whether it’s a change of ownership or the decision to deregister your property from touristic rentals.
Landlords must present quarterly tax returns on generated income and incurred costs. Deductible costs, applicable only to EU tax residents, include community fees, Town Hall rates, mortgage costs, management company fees, and accountancy fees. Non-residents may need to pay tax in Spain and declare income in their home country.
Remember: The details in this article are for information purposes only and you shou;ld always seek the advice of somebody who specializes in the applications for the relevant tourism licences.