This can be a smart strategy, as a well-managed holiday let can cover its own costs. However, the Spanish government has recently transferred control of rental properties to local authorities, leading to significant changes in the regulations, with more changes potentially on the horizon. Therefore, it’s crucial to understand the current rules before starting a holiday rental business.

Since When Have There Been Rules Governing Holiday Rentals in Spain?
The Spanish Urban Rental Act 29/1994 governs the rental of all properties, whether for primary residence or holiday lets. In response to pressure from hotel representatives, the Spanish government introduced a new law specifically for holiday rentals, which was approved on May 23, 2013, and has been in effect since July 2013. This law delegates the regulation of holiday lets to the regional governments. Regions like Catalonia, the Balearic Islands, and the Canary Islands have already enacted and are strictly enforcing local laws.

Do the Rules Apply to the Whole of Spain?
Specific laws regulating holiday rentals have been introduced in areas such as Asturias, the Balearic Islands, the Canary Islands, Catalonia, the Basque Country, and Valencia. Eventually, these rules will apply nationwide.

Can Any Type of Property Comply with the Rules?
Compliance depends on the property’s location. In regions like Catalonia and the Canary Islands, all property types can comply, whereas in some areas, individual apartments may not meet the requirements for short-term holiday lets.

What Must You Do to Ensure Your Property Complies with the Rules?
Generally, the property must be furnished and ready for immediate occupancy, with adequate facilities for food and drink preparation and storage. Depending on the location, you may need to apply for a rental license, which could require an architect’s report detailing the number of bedrooms and bathrooms and the size of each room. You might also need to display complaint forms for tenants and submit documentation about the property’s facilities to the local government.

Since June 1, 2013, an Energy Performance Certificate (EPC) is required to rent or sell a property. The EPC application must include a report from a qualified professional who has assessed the property’s energy rating.

Will You Need to Provide Ongoing Information to the Spanish Authorities?
Depending on your property’s location, you may need to renew its registration annually, periodically submit completed complaint forms to the local government, and register all tenants with the local police within 24 hours of their arrival.