You own property on our island that you do not use all year round? You think about renting out to tourists? This is what you need to know:
The following summarized and simplified information does not claim to be complete or replace professional advice, but rather should serve as food for thought.
Short term renting (season, week, day) of property is called “tourist rental” and is subject to Canarian Laws. Every Comunidad Autónoma (autonomous community) has their own laws concerning tourism, as opposed to residential renting that is controlled nationwide under the “LAU” (Ley de Arrendamientos Urbanos).
· legally approved as touristic
· touristic licence
· Operating Company (Entidad Explotadora)
· Quality standards such as front desk, complaint forms, cleaning service, etc.
You have to report to the Spanish tax office (Hacienda) that you are renting out, and pay tax for this income. Your tax number was given to you when you purchased your property. In case you do not live in Spain, either the operating company or your lawyer will take care of theses tax matters.
If you are renting out illegally and get caught, you have to expect high fines from either the government or the tax office. So, in case your unpopular neighbor is renting out illegally, you can report them anonymously.