I am only going on what they told me at the town hall at the time when we were applying for the building license - which took amazingly 20 minutes! Without an appointment. Perhaps Guardamar town hall are on an efficiency drive ;-)
My partner has a friend who runs a legal rental company and she tells us she can apply for licenses online - but you need to be a registered rental business to do this? Only repeating what I have been told....
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The simple truth of the matter, is often areas of defined as 'what is legal', is ignored, by the Spanish firstly as often the maths simply 'does not stack up', so companies or individuals do what they need to do in order to survive or earn a living. I am not condoning this, but having seen first hand at the utter ineptitude of a system which is seemingly designed to take money off you, before you (or company) has had a chance to earn money / turn a profit, is a sure fire way of getting people/companies to break the law.
If a self-employed person, does not make a profit in their specific venture, they are expected to pay north of €500 per month in social security, irrespective of if they have made any money. This for many self-employed is not viable, so they claim to work part-time (saves half the figure) and pull strokes elsewhere. You need to allow people to turn a profit or take some money, before taking it off them - as per the UK, social security is on a sliding scale - here, no. Inherently a system built incorrectly, mathematically doesn't work - so the vast majority (or so I am told) of self-employed workers have to make adjustments, which are not in accordance with the law.
I also read an article a little while ago, which mentioned 75% of small & medium companies were estimated to have 'accounting irregularities' - make of that what you will!
We live in a world where the king of the thieves resides as president of the supposedly free world, so if someone declares they work part-time when they work full time - as they can't afford to feed their family, because the system makes it unaffordable for them to survive, I can understand that in some instances, people simply do not have a choice. Does that make them criminals? I do not categorize these type of people the same as - turn up here, don't register, pay no tax or social - cash in hand always, basically taking the p - those people in Spain or the UK are dodgy and will do same wherever in the world and that I do not agree with. But it is never just 'black & white'.