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It is more than just registering for a licence.

Posted: Tue Jul 3, 2018 9:14pm
11 replies936 views8 members subscribed
Davebev1

Davebev1

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There have been numerous posts about the need for having a licence for holiday rentals, this is just to point out that there is more to it than just getting the licence - that is the first stage in the process.  I have seen posts by so-called property management companies who for 3 years ignored the law and didn't get licences and even now seem ignorant of all stages required, implying that the licence is all you need. So, to try and save some people money by not getting fined, I would like to point out the extras.  

If you have a property that you rent out, even if only to friends and family at reduced rates, then you MUST be licenced to do so, and your property has to comply with certain criteria.  You should also have rental insurance and public liability insurance.  All rentals need to involve contracts and bear in mind compliance on GDPR as your renters will be providing very important personal information.  

How to obtain a licence has been covered in detail elsewhere in various posts but I will finish with a couple of links for convenience so people can look things up for themselves easily.  I am not legally trained in this, I have just been through the process and it seems ahead of most owners as we have had our licence since the May of 2015 and regularly check for updates in the regulations (expect more in the future too!).  So the links are there for the legal advice.

It isn't just getting a licence, there are other parts to being legal as well. You must enter the details of all guests over 16 years of age on the Guardia Civil web site - to register with them and get your password you need to attend an appointment.  (For Orihuela Costa that is the station in Torre de la Horadada where there is only one person qualified to do the paperwork, he doesn't speak English and you may have to wait a few weeks for the appointment due to the numbers of owners only now registering.)  Once you have your licence number you must purchase your official plague (it's ugly and bright red!) and your official 'complaints book', which can involve another trip to Alicante unless you pay for someone to get it on your behalf, and display the official notice about having one (in Spanish) which can be downloaded and printed off.  Finally, if non-resident you must file a quarterly tax return declaring your rental income, and pay your due tax immediately.  If you are a Spanish resident then the rental income is declared in your annual tax return. 

If you use keyholders or cleaners, which if you don't live locally you will need, then they must be a legal business or registered as self-employed in Spain.  The Guardia Civil will ask for their details when you register with them.

This is NOT new! Compulsory registration has been necessary for 3 years, (longer for those with more than one property), but it is only now that the authorities have started to enforce the law, viewing 3 years as long enough for owners and agents to get to grips with things.  The fines will be very large for non-compliance.  As advertising sites can also be fined for advertising unlicenced properties, if you don't have your number then you will have problems accessing the more popular on-line options.

Links for more information in English, first the details of the law, house/apartment requirements and the application forms for the licence:

https://www.spain-holiday.com/rentalbuzz/holiday-rental-licences-in-the-valencian-community

I hope this is helpful to some people.

Kimmy11

Posted: Tue Jul 3, 2018 11:02pm

Kimmy11

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Posted: Tue Jul 3, 2018 11:02pm

Great post Davebev1.

I know Jan won't let anyone advertise on the Talk Quesada forum unless they include their Licence number, so I would think Alex is ensuring the same for this forum. 

You'll always get people who are happy to ignore the rules, especially if they're encouraged to do so, but hopefully, the majority of people reading your post who have a property to rent, will realise it's not worth the risk of using a property management agency that doesn't comply with the regulations.

Many thanks and kind regards,

Kim

jimtaylor

Posted: Wed Jul 4, 2018 4:09am

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Posted: Wed Jul 4, 2018 4:09am

I agree with Kim - it's an excellent post, and thank you for doing it.

I'd also point out that there's now a requirement for letting agents (websites and property management companies) to do quarterly reports of all lets to Agencia Tributaria:

Jim's Guide - Letting agents must now submit reports to Agencia Tributaria - Modelo 179


Davebev1

Posted: Wed Jul 4, 2018 8:49am

Davebev1

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Posted: Wed Jul 4, 2018 8:49am

Thanks Jim.  Being an owner of just our own property I haven't checked all the rules for people who manage multiple lets owned by other people, but it is good to know that there are extra checks in place.  Overall all this is good for everyone.  It will hopefully ensure all holiday lets meet basic standards and the due tax will be paid in Spain on the rental incomes.  It will probably take a few years to iron out some wrinkles in the system but eventually it should work smoothly.  

ColinL

Posted: Thu Jan 3, 2019 11:34am

ColinL

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Posted: Thu Jan 3, 2019 11:34am

Excellent, clear advice. Exactly what is needed. So many people have just cottoned on to the fact that licences are needed and view it simply as an administrative box ticking exercise. Newsflash, you folks - it's much more than simply applying and being granted a licence on demand. From tight specifications to rigourous administration, compliance isn't automatic. Penalties for non compliance are very harsh and increasingly being enforced. The folks that think that adding "tourist licence is in process" gets them off the hook are in for a shock too. The authorities are wise to this little trick too - and have stated unequivocally that they regard this as a ploy and in no way complies with the law of the land that states that the licence needs to be in place at the time of advertising and should be quoted in the advert. We haven't even touched on thd need to state lawful regarding tax declarations........ Lots of things to be aware of...... 

Greg88

Posted: Thu Jun 13, 2019 1:41am

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Posted: Thu Jun 13, 2019 1:41am

Hello, i believe we have a neighbour who is abusing this license requirement,he rents the house out all year,  there is a constant stream of tourists coming and going, making lots of noise, some bring dogs that bark loudly. The owner has no tourist licence. Is there somewhere/procedure to complain to in order to stop this?

Davebev1

Posted: Thu Jun 13, 2019 10:28am

Davebev1

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Posted: Thu Jun 13, 2019 10:28am

Yes, the local police station.  The police will act against illegal rentals and remove the guests.  You can also file a denuncia at the town hall.

If you are on a community then your president or administrator should also be involved in the complaint.  They should also be aware of whether the property has a license or not.  Also, if you are on a community, it sounds as though the occupants are breaching community rules as well, which have to be followed by rentals guests as well as owners, so that can be followed up with both the president and administrator.  

The official plaque does not need to be displayed outside, it can be inside the property, so not having a visible plaque doesn't necessarily mean they are not registered.  If the guests speak English you could also try asking them really politely if they have any information that would be useful to you.  It is underhand, but you could say something like you want to contact the owner to see if some of your relatives can stay there and do they have a contact number or where they found the property advertised.  

Greg88

Posted: Thu Jun 13, 2019 4:07pm

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Posted: Thu Jun 13, 2019 4:07pm

Many thanks, very helpful. The owner is a non resident who lives in another EU country and i know he uses a letting agent in that country to find people to stay in his property. I spoke with the community admin office and they are almost certain he has no licence so i doubt the licence is shown in the inside of his house. They have been in contact with him now but had no response yet. 

Davebev1

Posted: Thu Jun 13, 2019 4:19pm

Davebev1

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Posted: Thu Jun 13, 2019 4:19pm

I would ask the admin to report it to the police next time there are guests there, but alternatively do so yourself.

John56

Posted: Thu Jun 13, 2019 4:34pm

John56

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Posted: Thu Jun 13, 2019 4:34pm

All very helpful but I would stress that as you say it applies to all "holiday rentals", no licence is required for long term rentals.

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