Rules and taxes for renting out a property in Spain

Do you want to rent out your property in Spain? Here are the answers.

Costa del Sol, with over 300 sunny days a year and easily accessible from all over the world, offers you great opportunities for renting out your property when you are not using it yourself.

Costa del Sol, with over 300 sunny days a year and easily accessible from all over the world, offers you great opportunities for renting out your property when you are not using it yourself. There are very many who wish to rent a property on the Costa del Sol. You can choose to rent out your property yourself by advertising on different portals, or use a professional rental firm that takes care of the whole job. If one rents out during the high season, one can normally rent out a place between 18-22 weeks a year.

The number of weeks can be increased if one can offer rentals during the golf season and rentals to pensioners in the winter. (Reduced price from November to March)

Public requirements for renting out your own property in Spain

The law (Royal Decree 28/2016) covers short-term rental of homes to tourists where accommodation is offered in exchange for an economic consideration. This applies to properties that are marketed through travel agencies, rental firms, or via internet portals, advertisements in magazines where the public can reserve accommodations for short-term rental.

There are some exceptions in the regulation:

  • Renting to the same person for a period longer than two months.
  • Renting to family and friends without financial compensation.
  • Homes that are located in areas classified as a district.
  • Properties that consist of three or more homes with the same landlord (private owner or registered company) and which are located within the same unit (building or housing cooperative/condominium) This type of rental arrangement is subject to a different regulation

What are the requirements for the property when renting out?

  • There must be a completion certificate for the property.
  • All rooms must have their own control/unit for cooling of ventilation, as well as safety curtains on windows/doors.
  • The property must be sufficiently furnished with equipment and inventory according to the number of bed spaces.
  • The property must be equipped with a permanently installed ventilation system.
  • The property must have a first aid kit.
  • Information material must be prepared describing facilities in the nearby area such as shops, restaurants, public transport, pharmacies, hospitals, doctors, etc.
  • There must be a 'complaint book' in the property where guests can point out faults and deficiencies to the owner/rental manager.
  • The owner is responsible for cleaning the property.
  • The property should have enough towels and other necessary equipment like light bulbs, etc.
  • Contact information must be provided for a person/company where guests can contact to receive information during the rental period.
  • User manuals for all electrical equipment, internet, TV Develop house rules for the use of the property, related to noise, smoking, pets, rules in the housing cooperative, etc."

Registration of the property with the authorities

All properties that are to be rented out for payment must be registered in a public register (Registro de Turismo de Andalucía).

The following documentation must be presented in the application:

  • A copy of the completion certificate for the property with an overview of capacity including the number of bedrooms.
  • Information about ownership (private or company), address, and contact information.
  • Documentation ID of the property owners.
  • Upon approval of the application, a registration number will be assigned, which must be stated on documents and all marketing of the property.
  • Failure to register the property for rental can result in a fine that can vary from a few hundred to several thousand euros.

We at CARTMANI can assist you with the application for public registration of your property for rent

The rental agreement

A rental contract must be drafted to formalize the leasing agreement.

The agreement should contain at least the following points:

  • Information about who is the owner(s) of the property.
  • The registration number for rental (Registro de Turismo de Andalucía)
  • The number of people in the rental agreement must be stated, (There cannot be more than 15 people and no more than 4 per room)
  • Time of arrival and departure.
  • Rental price
  • Contact information..

What are the rules for payment or refund of the deposit in Spain?

The rental price, reservation amount (deposit), and terms of the agreement must be stated upon confirmation of the booking. Documentation of any previously paid deposit must be presented. Unless otherwise agreed, the deposit can constitute a maximum of 30% of the rental amount. The same applies if there is no written agreement.

If the tenant cancels the agreement 10 days before the start of the lease, the landlord can keep up to 50% of the paid deposit. If the cancellation occurs after 10 days before the agreement, the landlord can keep the entire amount.

If the landlord cancels the agreement up to 10 days before the start of the lease, the landlord must refund the paid deposit. The tenant can claim compensation of 30% if the landlord terminates the agreement after 10 days before the start of the lease

Requirements for documentation when renting a property

  1. All tenants must present a passport upon arrival.
  2. The landlord must submit a copy of the passport to the police for all tenants over the age of 16.

What taxes and fees must you pay when renting out your own property in Spain?

  • You pay 19% tax on rental income from leasing your property. These must be reported quarterly. The owner's costs during rental periods are deductible (broker, marketing, electricity, cleaning, etc.). Most use accounting offices or leasing companies to report rental income. We at CARTMANI offer this service to our customers.
  • If you use a broker for leasing your property, the costs are between 15-20% + 21% VAT (20% if the company also handles the property management).
  • If you wish to handle the leasing of the property yourself, there are management companies that carry out check-in and check-out of guests, cleaning of the property, and ongoing maintenance. (The cost depends on the size of the property and the extent).
  • If "hotel services" such as transport, extra cleaning, catering, etc., are offered, 10% VAT must be charged on the rent.


We at CARTMANI can assist you in finding the best solution for renting out your property, please get in touch for a chat.