Renting out Spanish property? An overview of the legislation

Newsletter March 2020|In our previous newsletter we discussed the main points of interest when buying property in Spain. As many clients rent out Spanish property, this newsletter will highlight the rental law in Spain treat.

As a letting agent in Spain, you are in competition with the hotel sector. In addition, you may be causing local rents to rise. We are thinking in particular of cities such as Barcelona, Palma and Valencia. This makes life more expensive for the ordinary Spaniard.

For this reason, Spanish lawmakers have imposed several restrictions in recent years. Specifically, depending on the autonomous region, you will have a licence or a registration number need. In addition, municipalities can impose additional restrictions.

Here is a preliminary overview of the legislation in the:

Comunidad Valenciana;
Comunidad Autónoma de Andalucía;
Islas Baleares;
Región de Murcia;

So you may not be able to offer your property for holiday rentals. We need to examine this on a property-by-property basis.

Do I always need a licence?

In principle, you do not need a licence when you rent out without using (online) promotional channels and hotel services. For example, think of renting to family and friends.

Also if you rent for periods longer than one month, such as to winter visitors or students, you do not need a licence.

In both situations, you fall under the Spanish regime of common rentals.

Read more about common rentals.

Planning the start-up of a B&B abroad? Here are 4 tips.

Do I pay taxes?

Often, clients think they only pay Spanish taxes on holiday rentals. However, this is not correct. When you rent out in Spain, you are obliged to declare your rental income on a quarterly basis. And this regardless of the rental regime. On your net rental income, you will be taxed as a non-resident in Spain at a rate of 19%. You are also required to declare the gross rental value in Belgium.

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