Renting out your property – obtaining a Tourist Licence
Obtaining a Tourist Licence in the Valencian Community
Renting out your Spanish property
Some people buy their property in Spain as in investment from day one. Others decide after a period of ownership that they would like to rent it out.
Renting out a Spanish property is a popular choice because there is healthy demand for short-term holiday rentals, especially on the Costa Blanca.
Before you rent your property, and ahead of any listing online, you will need to obtain a Tourist Licence. Tourist Licences come under the authority of regional government and these guidelines relate to applications in the Valencian Community.
Applying for a Tourist Licence
You can apply for the Tourist Licence yourself. But with the unfamiliar language and not understanding Spanish systems and processes, clients will ask us to assist with their application. If we already have Power of Attorney, then we can apply on a client’s behalf. If not, then Power of Attorney can be arranged.
The following documents will need to be supplied to accompany the application:
- Passport and NIE of the property owners
- Copy of the property deeds
- Energy certificate
- Habitation certificate
- Most recent SUMA / council tax bill
- Declaration of responsibility of first or second occupation
Our fee for applying for a Tourist Licence on your behalf is €300 (VAT inc.) The length of time it takes for the licence to come through varies as they are released gradually by the government. But we will be able to keep you updated at the time of your application.
Tax and allowances
There are certain costs that you can deduct before tax. These are community invoices, SUMA bills, management company invoices, repairs and legal fees. Tax on rental income is charged at 24% for non-resident property owners. (That will be the vast majority of British property owners). EU residents benefit from a reduced rate of 19%. Declarations are made four times a year at the end of each quarter. The fiscal/tax year in Spain is the same as the calendar year. You have 15 days after each quarter to make your declaration. We can complete the returns on your behalf if you would like us to.
Next steps
For further information please email us at admin@sun-lawyers.com
The information contained in this article is correct at July 2023. This article is for guidance only and is not intended as legal advice. The information included here should not be relied upon and may change at any time. Contact us directly for the most up to date situation on applying for a Tourist Licence.