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Changes to Spanish law on holiday rentals


Jonathan Eshkeri of E&G Solicitors in Spain (solicitorsinspain.com) explains the basics of the new legislation


M


any of those buying a home in Spain do so with the intention of using the property as a holiday let. T is is a sensible approach


and, if eff ectively managed, it can ensure that the property “pays for itself”. However, a law introduced by the Spanish government provides for the creation of local rules, which it is important to be aware of before you take the fi rst steps into holiday lettings.


Since when have there been rules governing holiday rentals in Spain? T e Spanish Urban Rental Act 29/1994 regulates the rental of all properties, both those for use by the tenant as a primary residence, and those that are let by the owner as holiday lets. T e Spanish government, under pressure from those representing hotels throughout Spain, proposed a new law relating only to properties rented as holiday lets. T is law was approved by the Spanish parliament on 23 May 2013 and is expected to be in force throughout Spain by July 2013. According to the new law the regulation of holiday lets becomes the responsibility of the region in which the property is situated. In some regions, such as Catalonia, the Balearic Islands and the Canary Islands, local laws have already been passed regulating holiday lets and are being enforced rigourously.


Do the rules apply to the whole of Spain? T e following areas have introduced specifi c laws regulating the rental of holiday let houses and apartments including Asturias, the Balearic Islands, the Canary Islands, Catalonia, the Basque Country, and Valencia. However, in due course the new rules will apply to all parts of Spain.


Can any type of property comply with the rules? T is depends upon the area in which your property is located. In Catalonia and the Canary Islands, for example, all types of property can comply, whereas in the Balearic Islands the rules provide that individual


apartments cannot be let on a short-term holiday let basis.


What do you have to do to your property so that it complies with the rules?


Simply stated, wherever the property is situated it must be furnished to be occupied immediately and should be suffi ciently equipped for the refrigeration, preparation and consumption of food and drink. Depending upon the location of your property, you may be required to apply to the local government for a rental licence, for which you may need to submit an architect’s report specifying the number of bedrooms and bathrooms at the property, and the size of each room. You may also need to display at the property claim forms that can be used by tenants to report their dissatisfaction with the property, if necessary. T ese claim forms, if completed by tenants, will be submitted to a local government offi ce. In addition, you may have to submit to local government documentation specifying the facilities available at the property. From 1 June 2013 it became essential for each property to benefi t from an Energy Performance Certifi cate (EPC) in order to rent a property, or indeed to sell it. T e application for an EPC must be accompanied by a report prepared by a suitably qualifi ed professional who will have surveyed the energy rating of the property.


Will you need to provide information to the Spanish authorities on an ongoing basis? Depending upon the location of your property, you may need to renew the registration of your property annually, submit all completed complaint forms to the local government periodically, and/or register all of your tenants with the local police within 24 hours of their arrival.


What are the sanctions for failing to comply with the rules? Depending upon the location of your property, under the new rules you may be subject to fi nes ranging from €3,000 to €400,000.


In some regions, the restrictions are such that it will become unlawful to continue renting as holiday lets many of the properties currently on the holiday lettings market. It may seem counterintuitive to impose strict rules on property owners who very oſt en are only able to cover the expense of running their second homes by renting them out to holidaymakers throughout the year. T at said, the new rules appear to seek to maintain a relatively high level of accommodation and service in private rental properties rented on a holiday let basis, a service level that Spanish hoteliers are already obliged to comply with. T e eff ectiveness of the new regime throughout Spain will very much depend on the extent to which compliance with the new rules is policed. §


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