Renting your primary home while it is unoccupied during the holiday period can be a good idea to obtain extra profitability. However, if you do not know the rules for legally renting your home in the summer, you may face large fines.
We have already seen What do the companies that manage tourist rentals do for you?. With which, moving on to the next point, in this article, we offer you 8 tips to rent your home legally and avoid problems with the authorities. If you are thinking about taking advantage of your property in summer, follow these steps:
1. Defines the Leasing Regime
The first thing you should consider is the type of rental regime that will apply to your home. In Spain, there are two common forms:
- Rent as a Second Home: This is the most common type of rental, ideal for those who want to rent their home for individual weeks or vacations themselves.
- Rental as Tourist Accommodation: In this case, the house is rented exclusively for tourist purposes, being considered an economic activity.
2. Know the Current Legislation
Regulations for renting tourist homes vary from one autonomous community to another in Spain. Each region has its own regulations and requirements that you must comply with. Make sure you know the specific laws and regulations in your area to avoid legal problems.
3. Meet the Basic Requirements
In most autonomous communities, there are basic requirements that tourist homes must meet. These usually include:
- Certificate of Habitability or First Occupation License: Your home must have these documents in order.
- Furnishing: The home must be rented fully furnished, with all the utensils necessary for the tenant: sheets, towels, kitchen utensils, appliances (in addition to the basics, a microwave, coffee maker, mixer, as well as an iron are recommended).
As part of our service tourist rental management, we put the textiles and we take care of cleaning after each stay.
- Emergency number: You must provide tenants with an emergency contact number.
4. Register your Tourist Home
If you choose to rent it as tourist accommodation, you must register your home in the Tourist Housing Registry of your autonomous community. Each home will receive its own identification number after registration.
5. Know Local Restrictions
Some autonomous communities impose additional restrictions, such as limits on the duration of rentals or a prohibition on renting rooms in certain homes. Find out about local restrictions before renting your home.
6. Income Declaration
It is important to declare the income you earn from rentals on your tax return. If you are an individual, you must include the profits in your personal income tax. If you are a professional, such as a manager or use a rental platform, you must declare VAT. Rates may vary depending on the autonomous community and the nature of the rental.
7. Pay Tourist Taxes
In some autonomous communities, such as Catalonia, owners of tourist homes must pay the tourist tax or Tax on Stays in Tourist Establishments (IEET). Make sure you meet these payments if they apply to your situation.
8. Avoid Fines
Failure to comply with the regulations can result in significant fines, ranging from 3,000 euros to 600,000 euros. In addition to financial penalties, you could face a ban on renting your home for this purpose in the future.
With these tips, you can legally rent your home in the summer and enjoy the economic benefits without worrying about legal problems. Make sure you are informed about the specific regulations in your area and meet all requirements for a successful and hassle-free rental experience.