Buy to Let property in Estepona: Everything you need to know
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Many our clients purchase properties in Estepona and surrounding areas with the intention of renting them out on a weekly basis. We, Future Homes, only deal in sales and have never entered the holiday lettings market, however we feel the need to inform our clients and the general public about the new laws that are soon to be in place and the procedure that must be followed in order to register a property for the short-term rental market.
What is considered a holiday rental home?
Any property in Andalucía offering rental accommodation at a price set by the owner, who markets it to potential tenants via travel agencies or online platforms. According to the Tourism Delegation of the Regional Government of Andalucía in Málaga (the Junta de Andalucía), all properties which are advertised in those portals connecting the owners and visitor must be registered as holiday homes. This rule does not affect rural holiday homes for rental, which are regulated by an existing decree.
What if the property is only rented during the three months of summer, fortnightly or weekly?
It will also have to be registered at the Registry of Tourism. The regulation only excludes properties being rented for periods of longer than two continued months by the same tenant.
What requirements must the property meet?
It must have been granted an occupation license. Its rooms must have ventilation to the exterior and shading systems fitted too. It will also be required to have air conditioning in the living room and bedrooms, for heating and cooling. The decree demands the inclusion of a first –aid kit, tourist information on the area, claim and complaint forms, and cleaning services prior to the arrival and following the departure of new tenants. The maximum occupancy per entire property must not be higher than 15 people.
When can the property be registerd at the registry of tourism?
Registration of properties covered by this new law will start from 12th May 2016.
The Andalusian Council of Tourism urges owners of such properties to use this transitory period to prepare the necessary documentation. Owners will have three months to register and will face fines if they do not comply.
What about taxation for a holiday home?
It will be treated like an urban rental, which means that the income from the rental activity has to be included as profit in the annual tax declaration. There is no need to register as self-employed or to pay any fee, nor the VAT if the person operating the rental is the property owner.
Is it possible to rent only single bedrroms in the property?
Yes, as it is stated in the decree, with the exception that it sent a condition that the owner lives in the same house in which they are intending to rent bedrooms to tourists. In fact, it is the first regulation in Spain to include this possibility .
The arrangements and documents needed are the same as if the whole property were rented. In this case, they will also be assigned a registration number for the advertising of the accommodation within the online platforms specialised in holiday rentals.
Does every tourist have to be issued with a contract, an invoice, or asked to produce an ID card for the police registry?
The regulation requires having a contract for every tenant, even if they are only staying for one night. Moreover, this written agreement must be retained for one year just in case it is requested by the Tourism inspectors. The document will contain the name of the person or entity operating the rental property, the alphanumeric code of registration in the Andalusian Registry of Tourism, the number of persons staying in the property, the dates of check-in and check-out, the total price of the stay, and the telephone number provided to the tenant to report incidents. Regarding invoicing, the owner is only required to issue a receipt for the payment of the accommodation, at the price which has been set for the rental. And for security reasons, the persons making use of the property must provide their identification for the purpose of filling in the check-in form, although it is still pending to be determined how it will be sent to the police registry. For hotels and apart-hotels it is done electronically.
What if an owner wishes to rent three or more properties within a range of one thousand metres?
That is the polemical issue in the new regulation, which considers that those who rent three or more properties in the same building or in buildings within a range of one kilometre of each other will be ruled by the decree of Tourist Apartments. That rule, modified to include this particular case, is more demanding in the sense that it forces the application for an opening license and to fulfil the requirements that include minimum areas for the different rooms of each property. Therefore, according to the Andalusian Government, the owner of three or more properties in this category will be required to register as self-employed to support this activity, and for taxation purposes will be subject to the particular requirements for someone who carries out business activities.
Please note: The information published in this article was obtained via Essential Magazine Marbella, April 2016 issue
Please feel free to contact us if you are considering a buy to let in Estepona, we can help guide you and show you some truly fantastic properties!
