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If you only live in your Spanish house during the high season and winter, you have to deal with vacancy of your own home for a number of months a year. In some cases, it may concern long-term vacancy, for example when you have had your house for sale for a while. The Spanish government would like to reduce the vacancy in the country and therefore gives you the opportunity to rent out your house. However, there are a number of laws and regulations associated with this.
Vacancy of houses in Spain, the figures
According to a study by Publisher Guide Lines into the developments on the Spanish real estate market, it appears that, according to the latest measurements, there are about 350,000 homes vacant in Spain. The locations of these houses in particular play a major role in this. Think of environments where there are few facilities. This number of vacant homes has been higher in the past; in 2010 there were no fewer than 931,615 homes. Now that the economy is slowly recovering, the demand for housing is also increasing.
Rental regulations vary by region
To stimulate the economy and reduce vacancy, the Spanish government is encouraging homeowners to rent out the property for a specified period. Keep in mind that Spain consists of a number of areas, all of which have their own rules when it comes to home rental.
For example, Andalusia has had its own legislation for tourist accommodation since the spring of 2016. This sets out the conditions when you have to register your home for holiday rental in the Register of Tourism in Andalusia. This is not optional, but mandatory. This way you can legally rent out your house and avoid high fines. Now you will not have to do that if you give the key to your home in Spain to family or friends for a few days a year. However, you are obliged to do so if you actively offer your house (or a room in your home) for rental via tourist parties. There is plenty of additional information about this online.
Rental license for your home
In order to be able to rent out your home for longer periods, it is important to get a rental license. You can do this by registering the house with the Spanish tourist register of the relevant region. Furthermore, since this year it is mandatory to be in possession of a visto bueno, which you can get after an inspection by the municipality. Part of your registration is whether your home meets the minimum requirements in terms of safety and facilities. Think of fire extinguishers, a first aid kit, the presence of a bathroom and toilet and furniture in the various living areas. When registering, also keep in mind that in the case of renting out a singular holiday home, you are registering as a private individual. Are you renting out more than four homes? Then you will be seen as a company. Do you only want to rent out a number of rooms for certain periods per year? Then it is wise to register as a hotel. The condition is that you are also present in your home when you have guests.
The tax when renting out in Spain
The (temporary) rental of your home must not only be registered, but also reported to the tax authorities. In this case, you enter the net amount that you have left over from the rental period in box 3. If you enlist the help of a rental agency, they will already withhold part of the amount and pass on the required numbers to the tax authorities. You will also receive an extract from this. In this case, as the owner of the home, you must pass on this information and enter what your income has been for the year in question. The level of the tax rate also differs if you live in Spain (19%) or not (24%).
Prepare a contract
Let the rental of your home go smoothly and draw up a contract in advance. If you have the rental of your holiday home arranged by a rental organization, they will draw up this contract for you. Are you doing this yourself? Then you have to prepare a contract yourself. Do not only state the necessary information here (such as rental period, contact details and the costs) but also establish general terms and conditions, so that it is clear who is responsible for the costs in the event of damage or cancellation a few hours in advance.
Maintenance of the rental property
In addition to the above matters, it is important to maintain your rental property well. This keeps your home in good condition and representative. But if you do not stay in Spain for most of the year, it is difficult to maintain the house yourself. In this case, the advisers of Dream Properties International can put you in touch with reliable companies that not only keep your house clean, but also your pool and garden in perfect condition. Contact us for more information.
