TOURISTICAL ACTIVITY – PROCESS, REGULATION AND STEPS OF REGISTRATION
There is a big confusion in the Spanish rental property market in VALENCIA REGION (“Comunidad Valenciana”), about the exact requirements, obligations, and process to develop the rental activity in the region of Valencia. After receiving dozens of demands of information at this respect, we have decided to elaborate this report to clarify the most common questions demanded by our clients and contacts.
Antecedents and laws:
There are 2 important aspects to consider when decided to rent your property as for touristic purposes:
- FORMAL OBLIGATIONS
- TAX OBLIGATIONS
There is a general Decree for touristic activity, the Decreto 92/2009, from 3rd of July 2009 . This decree has the aim to:
– Confirming the legal obligations and responsibilities from landlords
– Guarantying protection of rights of to consumers and users
– Control de activity of the landlords
This law says, specifically:
1.- What is a “Vivienda or Apartamento Turístico”? – It’s a property where there are the following conditions:
– When there is a compensation for the use.
– When there is immediate availability of the apartment.
– When the “use” or “destiny” of the apartment is “touristic”
– When it is done on “regular basis“. Regular basis means that you are in ONE of the following cases
– When the rent is managed by big touristic operators/companies
– When you publish the property in touristic channels (internet, newspapers, etc).
– When even not being “a company”, you make some of these services: property maintenance and repairing, room service, cleaning apartment, toilets, etc, washing private clothes or apartment equipment (sheets, towels, etc.), luggage custody, etc.
So, when you are renting your property for “residential” purposes, with medium-long term of families or individuals renting it for “living” and not for “tourism”, then, your property is out from this “touristic property” regulation. “Residential rents” will be regulated by the general law of renting (or “Ley de Arrendamientos Urbanos”). So, you will not need to follow these formal requirements of registration, But, as explained below, you will need to declare your rental incomes for Spanish taxes.
2.- What are the formalities to develop this activity? –Registration in the Holiday Rental Valencian Registry (HRVR).
– If you only rent from one to 4 properties, then, you have to register as a “particular”.
– If you rent more than 4 properties, then, you have to register as a “company” or “business dealer”.
But, even in the case you decided not to register your property in the registry from Valencia, your property must fulfill with the legal standards of quality and equipment as in the following section.
CERTIFICATE OF URBAN COMPATIBILITY: Since the entry in force of the Law 15/2018 in June 7, to obtain the touristic license, a report from the Town Hall of the area is required. This report is called: “Certificado de Compatibilidad Urbanística”. This document is issued by the Town Hall and confirms that the property fullfils the requirements from the construction laws to develop the touristic activity.
3.- Property Requirements–Legal standards of quality and equipment:
Every property, registered or not registered, offered in the market as rent for touristic purposes, must fulfill the requirements established in the law for any of the classifications considered: “Standard”, “Primary” or “Superior”. In order to register the property, it may get, as minimum, the “Standard” requirements.
The annex of the law details the requirements from each of these classifications, in terms.
As well as the requirements established by the law, properties will be offered to clients in perfect conditions of habitation, conservation, clean, and will all utilities and services ready for the first day of occupation.
Owners cannot demand more than 250 EUR to clients as per deposit/bond/guaranty, except if buyers expressly agree with a higher amount.
Habitation License / Certificate of habitation required
The Property must have the certificate of habitation (“Licencia de ocupación” or “Cédula de Habitabilidad”), and it must be equipped with all whitegoods, and equipment to be used in perfect conditions and perfect higyene.
Houses in rustic land requires changing classification of the land
If the property is placed in rustic land, then, the classification of the land must be changed to allow this use. This is a very complicated process called “Declaración de Interés Comunitario”, where the Town Hall, with audience to regional government, accepts the change of use on the land. .
OTHER FORMAL OBLIGATIONS:
In addition to the eventual formal and tax obligations as required by the law, we specially recommend you the following:
- Architect certificate: It is very important to obtain advice by specialists in order to confirm if the property fulfils with the requirements as per the law. So, it will be necessary and architect to visit the property and to certify if the property is ready to be rented and to prepare an EMERGENCY PLAN.
- Energy Performance Certificate: Recent Spanish normative forces landlords to get an Energy Performance Certificate to renting properties. So, this certificate must be obtained before offering the property in the market for renting it. Click here to more information about Energy Performance Certificate requirements.
- House insurance: As landlord, we specially recommend you to contract an insurance to cover container, contents, and civil responsibility. Click here to know more about insurance when renting.
If you have already contracted an insurance for your property, and then you decided to rent it, then it is very important you INFORM to insurance company about this fact. Otherwise there will be high possibilities the insurance company does not cover damages created by non-declared activities.
4.- Registration process
a) Format: You have to fill the official form. Click here to get it. Please, note that this form is a “declaración responsable” (or “declaration of responsibility”) where you declare, and CONFIRM under your own responsibility, that the details and information included are TRUE, being direct responsible of the content included.
So, if the information contained is not correct (for example, you declare that the minimum size of the bedrooms are 8 m2, when they are less in real), you may be responsible from false testimony, fraud, etc.
Thus, if you are not 100 % sure that your property requires ALL the conditions to arrive to a “Standard”, or to see if your property may be a “Premium” one, then, contract the services of an architect to make a survey and to check and certify that you that your property fulfills these conditions.
b) Registration. Once the format is filled, you have to present it in one of the Valencia Government offices in Alicante, Valencia, or Castellón:
You will receive a document to confirm the registration of is complete. Obtained the registration number, you have to register it in ALL the publicity, formats, contracts, etc derived from your activity.
Offering services without the obligatory registration may have the following consequences:
– Fines up to 90.000 EUR
– Suspension of the activity on that property up to 3 years
– Suspension of the activity to the owner up to 3 years
6.- Other aspects
Must I inform and advertise my registration number when advertisign the property?
YES. Your registration number must be shown in all kind of information, publicity, advters, etc. e registration number assigned to each dwelling.
May I rent my property only for rooms?
NO. Property must be rented in full, and the owner cannot be living on it.
May I rent the property as an standard SHORT TERM rent?
YES. But, in this way you must cancel the registration in the Touristical registry, because the law does not admit adverts of “standard rents” in touristical channels. When deciding to rent the Property, there are two ways:
- Registering in standard rent. It means a rent in short or long.term period, and subjected to a rental contract and use out of touristical use. In this ways, the house cannot be published in the touristical channels (as AirBNB for example).
- Registering for touristical use. In this case, Property can be advert in touristical channels.
Must I keep a Entry’s book for guests?
YES. You need to keep a book where all the customers are recorded, in a format that you must obtain at the local Pólice Station or Guardia Civil from the place where the Property is situated.