Regulations for renting in the Valencian Community

Before offering, advertising or renting a property in the Valencian Community, it is important to define the type of rental and to know the applicable regulations.

1. Types of rentals in the Valencian Community

A. Tourist rental

• Duration: Maximum 10 nights per client.
• Licence: A tourist licence is required.
• Important:
  • If the stay exceeds 10 days, it is no longer considered a tourist rental according to the regulations of the Valencian Community.
  • In this case, the property is not subject to the specific tourist rental regulations, although it can still be a holiday rental activity.

B. Seasonal rental (Temporary rental)

• Duration: From 11 nights to less than 1 year.
• Licence: No tourist licence is required, although other regulations may apply.
• Important:
  • A seasonal rental can be less than 11 days. What really matters is the reason for the stay.
  • When do tourism regulations apply?
    • If the reason is for tourism and the stay lasts less than 10 nights, the tourist rental regulations of the Valencian Community apply.
    • If the reason is NOT for tourism, the rental can last less or more than 10 days and will still be considered a seasonal rental.
  • Example: A person from Madrid rents a property for 7 days to take a Yacht Captain exam. Although the stay is less than 10 days, this contract is considered a seasonal rental and is not subject to tourism regulations.

C. Long-term rental (Residential rental)

• Duration: Minimum 1 year.
• Licence: No tourist licence required.

D. Dwelling as usual residence

• When does it apply?
  • When the tenant uses the dwelling as his main residence and lives there permanently.

2. Obtain permission from the Community of Property Owners (CP):

To use the property for tourist rental purposes, written permission from the community of owners is required (as long as the community of owners does NOT prohibit tourist rental). This permission must be evidenced by a certificate or official minutes of the meeting.

3. Apply for a tourist housing licence:

You must submit an application on the Generalitat Valenciana platform with the following documents:

• Certificate of urban development compatibility: issued by your local council.
• Declaración Responsable: A signed document stating that the accommodation complies with all legal and technical requirements, such as fire safety, accessibility and minimum facilities.
• Cadastral data of the property.

Note: Tourist dwelling licences are valid for 5 years and must be renewed at least one month before they expire.

4. Ensure that the accommodation complies with legal requirements:

• Accessibility: Properties on the fifth floor and above must have a lift.
• Minimum facilities:
  • Internet connection.
  • Air conditioning and heating.
  • Washing machine, fridge, iron, oven or microwave, extractor hood and television.
• Security:
  • Emergency evacuation plan, visible at the entrance.
  • 24-hour emergency telephone for guests.
  • It is not permitted to hand over the keys to the property using a key safe located on the public road right next to the property; keys must be handed over in person.
• Others:
  • The accommodation must be fully furnished and equipped with kitchen utensils and bed linen.
  • Have a first aid kit.
  • Clearly indicate the electrical voltage throughout the dwelling.

5. Take out liability insurance:

In addition to the insurance of the building and its contents, liability insurance is mandatory.

6. Consider additional obligations:

• Registration: As of 2 January 2025, there is an obligation to have a single registration number for all short-term rentals, managed through the European One-Stop-Shop, administered by the Spanish central government. An adaptation period until July 2025 is established for its implementation.
• Taxes: Ensure correct payment of taxes derived from rental income.
• Municipal regulations: Consult the specific regional and local regulations in your municipality.

7. Fines for non-compliance:

Failure to comply with these regulations can lead to fines of between 10,000 and 600,000 euros, depending on the seriousness of the infringement.

For updated information: Contact the Generalitat Valenciana or consult a specialised legal advisor.

Summary

In order to provide holiday accommodation, it must

• Define the type of rental (tourist, seasonal or long-term).
• Obtain permission from the homeowner's association (if applicable).
• Apply for a tourist licence from the Generalitat Valenciana.
• Apply for a lease number at the DIGITAL ONE-STOP-SHOP
  
• Ensure that the accommodation complies with legal requirements (accessibility, facilities and safety).
• Take out liability insurance.
• From 2025, get a unique registration number and manage your taxes correctly.

Mandatory notification of changes of type and rental periods:

As a lessor of holiday accommodation in the Valencian Community, you are obliged to communicate in advance any change in the type or period of rental through the regional platform of administrative procedures for tourist rental in the Valencian Community. This platform will allow you to keep your details up to date and guarantee that your rental complies with current legislation.

Making changes

For bookings of less than 11 days, provided that the purpose of the booking is for tourism, different rental legislation applies than for periods of more than 10 days, regardless of the purpose of the booking.

• Tourist rentals of less than 11 nights fall into the category of "tourist rentals".
• Rentals of more than 10 nights, whatever the reason, are considered as "non-tourist rentals".

This means that you will have to periodically adjust the rental rate according to the duration and reason for each booking.

Therefore, it is not necessary to report changes with each individual booking, but it is essential to adjust the type of rental when the duration of the booking exceeds the 10-night limit or changes occur.

What if it does not transmit the changes?

Failure to report changes in time can negatively affect your tourist licence. If your rental information is not up to date, it could lead to fines or even loss of your licence, which would prevent you from renting legally. It is therefore essential that you ensure that you correctly report any changes to your rental conditions or rental periods.

How to deal with unforeseen changes?

It can sometimes be difficult to accurately predict what changes will occur, especially if the rental period varies or depends on demand. Fortunately, you can simplify the process by hiring a rental agency that uses automated software links. In this way, all rental types and periods are managed automatically and adjustments can be communicated in real time. This ensures compliance with legislation and protects your licence.

Summary

As the owner of a rental property in the Valencian Community, you are obliged to inform the Generalitat Valenciana annually about the periods assigned to the different rental categories, such as tourist rental, short term rental, personal use or non-rental periods.
Any changes must be communicated immediately as soon as they occur or are planned for the season.

Key points:

• For rental periods of less than 11 nights, the "tourist rental" category applies for the purpose of tourist rental.
• For periods longer than 10 nights, the rental falls into the category of "seasonal rental". In addition, if the rental is not for tourism purposes, even bookings of less than 10 nights can be considered as seasonal rentals.
• Reporting changes in time helps to avoid fines and protects your tourist licence.

The process can be simplified by using automated software through a rental agency. This ensures that rental data is always up to date and compliant.

Mandatory registration of guests in holiday homes

1. Obligation to register guests

All guests staying in your tourist accommodation must be registered and it is compulsory for all travellers, including minors over 14 years of age.

2. Registration with the Ministry of the Interior

Registrations must be made through the central system of the Ministry of the Interior (SES.HOPEDAJES). The old system through the National Police or the Guardia Civil is no longer used.

Steps to access the system:

• Registration as owner: Apply for registration with the Ministry of the Interior through its official website.
• Necessary documents:
  • Identification (passport or NIE/DNI).
  • The ownership papers of the accommodation or a rental contract if you are a manager.
  • Tourist rental licence in force from the Generalitat Valenciana.
• Access to the platform: After approval, you will receive the access data to the notification system, called the Travellers' Register.

3. Information about the guest to be registered

• Personal data:
  • Name and surname
  • Date of birth
  • Nationality
  • ID number and type of document (e.g. passport or ID card)
• Information about the residence:
  • Arrival and departure date
• Verification: Upon arrival, guests are required to present their identity document so that you can verify their identity.

4. Obligation to report within 24 hours

You must submit the details of all guests through the Home Office system within 24 hours of their arrival. This can be done manually via the online platform or automated via a certified software solution.

5. Retention obligation

Owners are obliged to keep a copy of the guest register, either in physical or digital format, for a minimum period of 3 years.

6. Privacy and data protection

Ensure that data is processed in accordance with the General Data Protection Regulation (GDPR/GDPR). Data must be stored securely and accessed only by authorised personnel.

7. Inspections and sanctions

Authorities may carry out checks to verify compliance with registration obligations. Fines for non-compliance range from €600 to €30,000, depending on the seriousness of the infringement.

8. Additional information and support

For assistance or more information on the registration requirement, please visit the official website of theHome Office .

If in doubt, contact a legal adviser or a specialised rental service.

Summary

This checklist will help you meet the requirements for guest registration in Spain, specifically in the Valencian Community. The centralisation of notifications through the Ministry of Interior simplifies the process and ensures a uniform approach throughout the country.

Platforms' obligations to transmit information to the Spanish tax authorities

What is Form 238 and why is it important for holiday home owners?

If you rent a holiday home in Spain through online platforms such as Airbnb, VRBO, Booking.com or similar, form 238 may be relevant for you. This form is a declaration for the Spanish Tax Administration (AEAT) to control income from property rentals. Here is a simple explanation of what it consists of and what you should know.

Mandatory Form 238?

Form 238 is a mandatory report for companies and platforms that act as intermediaries in the rental of properties in Spain. This report allows the tax authorities to control the income generated by holiday rentals. Since the recent regulatory changes, platforms no longer file Form 179 annually, but Form 238 monthly. This improves the speed and accuracy of tax control.

What information is shared?

Form 238 includes the following data:

• Property details:
  • Full address of the property.
  • Cadastral reference.
• Owner's information:
  • Name and NIF or NIE of the holder.
• Rental details:
  • Rental period.
  • Total price received.
• Additional services: e.g. cleaning, linen hire, etc.

Should you do something yourself?

As a landlord, you do not need to submit form 238 yourself, as this is the responsibility of the intermediary platform. However, please make sure that:

• Your details are correct and up to date on the platform.
• Declare your rental income to the AEAT using the corresponding tax forms.

Why is it important?

Form 238 allows tax authorities to ensure that holiday rental income is correctly declared. In addition, the AEAT can reclaim taxes retroactively if it detects irregularities, with a general limitation period of four years. Accurate record keeping is essential, as tax authorities may request proof of your declarations.

What happens if you do not fulfil your obligations?

Failure to comply may result in:

• Fines for tax evasion, which can be up to 150% of the amount owed, plus interest.
• Tax inspections, which could lead to further sanctions.
• Suspension of tourist licence.

How to comply with the regulations?

To avoid problems, we recommend you:

• Record your income: Keep a detailed record of reserves, income and expenditure.
• Report your income: Use the appropriate tax form, such as form 210 for non-residents.
• Seek advice: Consult a tax advisor specialised in Spanish regulations.

Summary

Form 238 is mandatory for rental platforms, but as a landlord, you are still responsible for correctly declaring your income. Make sure you comply with tax regulations and keep accurate records to avoid problems with the AEAT.

VAT regulations for tourist and short term rentals in Spain

1. The legal framework for VAT on rents in Spain

The rental of real estate in Spain is regulated by Law 37/1992 and its implementation in Royal Decree 1624/1992. This legislation distinguishes between residential rentals, which are generally exempt from VAT, and rentals with hotel-type services, which are subject to VAT, normally at 10%.

Applicable VAT rates

2.1. Rental with hotel-type services - 10% VAT.

If the rental (overnight stay) includes services such as regular cleaning, change of bed linen and towels, or hotel-like care, a reduced VAT rate of 10% applies. This includes short-term tourist rentals.

2.2. Renting without hotel services

Short-term or long-term rentals without additional services are generally exempt from VAT, provided that they do not include hotel-like services.

3. Practical examples

• Final cleaning only: Exempt from VAT for long stays; 10% may be applied in tourist cases.
• Weekly cleaning and change of sheets: 10% VAT.
• Extended services (breakfast, excursions): 21% VAT may apply.

4. For further information

• Visit the Tax Agency's website : www.agenciatributaria.es.
• See legal texts such as Law 37/1992 and Royal Decree 1624/1992.
• Review binding rulings of the Directorate General for Taxation.

Summary

• Hotel services: 10% VAT.
• Without additional services: Generally exempt.
• Extended services: If additional included services are provided that are not directly related to the overnight stay, a VAT rate of 21% will be applied.
• For commercial purposes without services: When the accommodation is offered through a company that subleases it to third parties for commercial purposes, a VAT of 21% is applied.

Always consult a tax advisor to ensure compliance and avoid future problems.

Taxation of holiday rentals in Spain

When you rent a holiday home in Spain, you must comply with certain tax obligations. Here are the details:

1. Taxation of rental income in Spain

For non-residents (who do not live in Spain):

• Tax liability: If you do not reside in Spain but earn income from a rented property, you are obliged to pay tax on that income.
• Tax rate:
  • For residents of the EU, Iceland and Norway: 19% of net income.
  • For non-EU/EEA residents: 24% of gross income (without deduction of expenses).

For residents (living in Spain):

• Rental income is included in personal income tax (IRPF) and is taxed at progressive rates, ranging from 19% to 47%, depending on your total annual income.

2. Deductible expenses

For residents of the EU/European Economic Area (including Iceland and Norway):

Non-EU/EEA residents can deduct certain expenses, so that only tax is paid on the net income. Deductible expenses include:

• Mortgage interest related to housing.
• Maintenance and repairs (not major renovations).
• Community of owners' fees.
• Real Estate Tax (IBI) and other local taxes.
• Insurance (e.g. home and contents insurance).
• Water and energy costs (only for the period in which the dwelling was rented).
• Depreciation of the dwelling (generally 3% of the value of the construction, excluding the value of the land).

NOTE: The deductibility of some expenses will be proportional to the number of days the property has been rented.

For residents outside the EU/European Economic Area:

• No deduction of expenses is allowed. Taxes are levied on gross income at 24%.

3. Administrative and fiscal obligations

• Registration with the Spanish Tax Agency (Hacienda): Non-residents must register in order to file a tax return.
• Form 210 (Non-resident declaration): This is the form to be used by non-residents to declare rental income.
• Rental licence: Depending on the autonomous community, you may need a licence to rent legally. Check the specific regulations of your Autonomous Community.
• VAT (Value Added Tax): Rentals that include the provision of other services typical of the hotel industry will be subject to VAT at 10%. Examples of these services are: cleaning, bed linen, 24-hour telephone service, reception desk or other typical hotel services offered in holiday rentals.
• Tourist tax: In some regions, such as Catalonia or the Balearic Islands, it is compulsory to collect and declare a tourist tax.

Summary

• Tax rates: EU/EEA residents pay 19% on net income, while non-EU/EEA residents pay 24% on gross income.
• Deduction of expenses: Only possible for EU/EEA residents and limited to certain specific expenses.
• It is important to submit the correct forms and register the property properly to avoid penalties.

What is the Ventanilla Única (One-Stop-Shop) for temporary and holiday rentals in Europe?

European Initiative

The Ventanilla Únicais an initiative promoted by the European Union (EU), whose main objective is to harmonise and simplify regulations related to short-stay rentals in Member States. This proposal aims to make life easier for both hosts and digital platforms, ensuring efficient compliance with local, national and European regulations.

Initiators of the Proposal

• The European Commission, through its focus on the European Digital Agenda and the Services Directive, led the initiative.
• Collaboration with national and local authorities, digital platforms such as Airbnb, Booking.com and Vrbo, as well as homeowners' associations.

Implementation in Spain

Implementation Phases

1. First steps: In 2022, Spain participated in the initial discussions to develop a common European system, focused on digitising administrative procedures and reducing the bureaucratic burden.
2. Entry into force: 2 January 2025, although its effects will start to apply progressively from 1 July 2025.

Features of the Ventanilla Única in Spain

• Centralised registration: Hosts can register their properties at national level, regardless of the Autonomous Community in which they are located.
  NOTE: However, accommodation marketed for tourism purposes and subject to the corresponding Autonomous Community regulation must also comply with the registration and licensing obligations established by the corresponding Autonomous Community.
• Tax simplification: Digital platforms are obliged to report the income generated by hosts directly to the tax authorities.
• Regulatory compliance: Automatic verification of licences, quality and safety standards established by the autonomous communities.
• Data protection: Guarantee of the security of the hosts' personal and fiscal data.

Main Objectives

• Simplify administrative procedures: Facilitate the registration and compliance process for hosts in a single digital portal.
• Improve transparency: Ensure that all tourist rental properties are registered and comply with regulations.
• Promote fairness in the market: Ensure that all platforms and hosts comply with the same rules.
• Combat tax evasion: Through mandatory reporting of revenues generated, contributing to increased tax collection.

Benefits for Spain

The implementation of the Single Window brings numerous benefits for Spain, including:

• Better management of tourism, a key sector for the Spanish economy.
• Reducing tensions in tourist destinations affected by overcrowding and illegal renting.
• A unified tool that fosters collaboration between autonomous communities, the central government and digital platforms.

Summary

The Ventanilla Única for temporary and holiday rentals in Europe is an EU initiative that harmonises and simplifies regulations. It provides hosts with a central platform for registration and compliance, promotes transparency and tax collection, and fosters a fair market. In Spain, the system helps to improve tourism management and combat illegal rentals.

Specific Regulations for Accommodations in Homeowners’ Association

As the owner of a property in a residence with a Homeowners’ Association in the Valencian Community that you wish to rent to tourists, you must comply with the legal requirements, as established in the Decree Law 9/2024, of 2 August, of the Consell:

1. Application for a tourist rental licence

You must apply for a licence from the Generalitat Valenciana. This requires a municipal certificate confirming that your property is suitable for tourist rental (town planning compatibility certificate). Your property must meet specific hygiene, comfort and safety requirements.

2. Consent of the Homeowners’ Association

For applications after 2 August 2024, a statement from the Homeowners’ Association that tourist rentals are permitted is required. For existing situations, this is not required.

Validity and renewal of the licence

The rental licence is valid for five years and must be renewed thereafter. At the time of renewal, you must reapply for the municipal certificate of tourist compatibility and submit a declaration that the Homeowners’ Association allows tourist rental.

4. Prohibition of key boxes

It is forbidden to place key boxes on the public highway or in the common areas of the buildings. You are obliged to personally greet tenants on arrival.

5. Maximum rental period

Tourist rentals are limited to stays of up to 10 days. For longer stays, rentals are considered seasonal and other rules apply.

6. Transfer of ownership

When the property is sold, the new owner must apply for a new rental licence. The existing licence is not transferable.

7. Minimum accommodation requirements

• An evacuation plan at the front door.
• Sockets in all rooms.
• Hot water supply.
• A fully equipped kitchen.
• Heating at least in the living/dining room.
• Internet connection (unless there is no coverage in the area).
• A first aid kit.
• Detailed information on the nearest medical centre.

8. Compliance with municipal regulations

Municipalities have the power to impose additional rules and restrictions on tourist rentals. It is therefore important to know the local regulations in your municipality.

For a complete overview of the legal requirements and procedures, I recommend that you consult the Decree Law 9/2024, of 2 August, of the Consell and seek legal advice, if necessary, to ensure that you are fully compliant with all obligations for tourist rental in the Valencian Community.