Last year 2019 Spain experienced for the seventh consecutive year a new historical record of visitors, reaching almost 84 million tourists in that period. Likewise, the expenditure per person was also increased, which grew by 2.82% over the previous year. These positive data make every year more properties for tourist rental arise with the aim of responding to this demand, an especially common trend in coastal areas such as the Costa Blanca and large cities such as Madrid or Barcelona. Spanish legislation gradually adapts to these changes in the sector, and every year it establishes modifications to fit all assumptions.
This month we want to remind you what are the three main types of rent that the law currently contemplates, and what implications each one has. In the case of being a tenant or lessor of a home, it is important to ensure that the appropriate contract model is being applied since the degrees of protection of both parties will vary significantly in one case or another. We also remind you that it is necessary to keep updated on the new developments and legislative modifications to properly tax our rental home if you own it. Villas Internacional can advise you in this regard to comply with the established fiscal and legal requirements.
This type of rental is included in article 2 of the Law on Urban Leases (LAU) in the following terms, and defines it as the one located in a “habitable building whose primary destination is to satisfy the permanent need of the lessee’s house”. That is to say, it is the case of those properties destined to the habitual use of the tenants as main dwelling for a long stay.
Its regulation is therefore based on what is stipulated in the LAU itself. The last modification of this law, which dates from 2019, already introduced notable modifications, such as the extension of the mandatory extension time from 3 to 5 years and that of tacit extension, that means that it passes from 1 to 3 years in the event that the Landlord or tenant does not express their willingness not to renew it.
Rental of seasonal housing
These are the cases in which the destination of the dwelling is to cover the need temporarily. It will have a shorter duration than the general lease of the previous point, but longer than the rental of housing for tourist use that we will see later.
Until 2013 there were no differences between rental of tourist and seasonal housing, since both were equivalent and were subject to the LAU for the purposes of the Tax Agency.
Rental of tourist use housing
This type of rental is now legislated by the Autonomous Communities and their town councils, which are responsible for regulating urban planning and activity licenses.
In the specific case of the Valencian Community, it is necessary to comply with Law 15/2018 of the Generalitat of Tourism, Leisure and Hospitality; as well as Decree 92/2009, of July 3, of the Consell, which approves the Regulation regulating tourist housing. This defines them as “complete properties, whatever their typology, which, having the municipal urban compatibility report that allows such use, are transferred by price regularly under conditions of immediate availability and for tourist, holiday or leisure purposes” .
Thus, we see that according to the current regulations of the community the property must be correctly registered in the Tourism Registry of the Valencian Community, and also have a municipal urban compatibility report.
Do you know what is the rental modality that governs your property? Regardless of whether you rent a villa, a luxury villa, an apartment or a bungalow, it is important that you ensure that the appropriate legal and fiscal framework is being applied in each case. In Villas Internacional we help owners of Altea, Benidorm, La Nucía, Finestrat, Polop, Calpe and other towns of the Costa Blanca to solve these and other doubts.
Contact us and we will be happy to help you.