Letting your property on the Costa Blanca and Costa Cálida

Once you have purchased a property on the Costa Blanca or Costa Calida you have a fantastic place under the sun from which you can enjoy days, weeks or months. But what can you do with the property during the rest of the year if you are not there yourself? Renting out to tourists can be a good option. There are a few important rules and requirements for this. We are happy to help you rent out your property in the right way.

Rules for holiday rentals

Do you want to offer your villa or apartment for holiday rentals? Then you first have to apply for a registration number for your property. You can of course do this yourself, but we advise you to contact a gestoria or solicitor. You have to state this number for every kind of publicity, whether you advertise on Airbnb or via your own website. In addition, you must register any person (older than 16 years) who rents your property to the police or the Guardia Civil - just like hotels do. You can easily arrange this online via a special website for which you can request login details. We are happy to advise you who can help you with this.

Tax on your rental income

You are obliged to pay tax on your rental income. How much you pay depends on where you are a resident. Are you a resident in Spain? Then your rental income is added to your income and you pay income tax on your rental income. This concerns the net profit, so you can deduct all costs related to the letting (such as gas, electricity and promotion costs) from the profits. If you are not a resident in Spain, you pay a standard 19% tax if you are European citizen. If you are not an European Citizen, you can not deduct any costs of the property and pay 24% over the rental income. It is good to know that rental websites such as Airbnb, Tripadvisor and Homeaway must pass on data to the tax authorities since 1 January 2018. They give your name, but also the number of rented days and the rental income received.

How much can you earn?

Spain is one of the most popular holiday countries in Europe. Beacuse of that there is a good chance to let your property. Of course, this depends on the location, the quality of the house and the rental price. To get an impression of the rental prices you can search for similar properties on rental websites as Airbnb. If you calculate your income, you shouldn’t forget the costs. You will be faced with the aforementioned tax, but also with promotional and cleaning costs, for example. Perhaps you even outsource all work to a specialized company. The advantage is that you then have nothing to worry about. This way you have more time to enjoy your home and the wonderful Spanish climate!

More info

Would you like to know more about renting out your property? Rayos de Sol specializes in buying and selling homes on the Costa Blanca and the Costa Cálida. We are happy to answer your questions. Click here for our contact details and here for more information about our services.