Navigating the Vacation Rental Licensing Process in the Canary Islands: A Guide for Property Owners

Navigating the Vacation Rental Licensing Process in the Canary Islands: A Guide for Property Owners05/07/2023

Introduction to the Holiday Rental Licensing Process in the Canary Islands

Welcome to an essential guide for all property owners looking to rent out their holiday home in the Canary Islands. If you're considering diving into the world of vacation rentals, or if you've already dipped your toe in but find yourself somewhat adrift in a sea of red tape, you're in the right place. Here, we will help you understand how to navigate the process of obtaining a vacation rental licence in the Canary Islands and how our experience at Pambnb can ease your journey.

Throughout this guide, you'll chart a course from the initial local authority enquiry right up to the drafting of the responsible declaration of commencement of holiday rental activity. Concerned about meeting the minimum equipment requirements or unsure how to register your property with the Inland Revenue under the IAE 685 heading? Don’t worry, we'll cover it in detail!

We'll also delve into the intriguing world of non-hotel tourist accommodations, learn about the importance of reporting data to the police department, and review the legal and tax obligations that all owners must fulfil.

If you've heard horror stories about the risks of renting without a tourist license, we'll equip you with the necessary details to protect your investment and peace of mind. Worried about making common mistakes in this process? We'll provide you with a list of the most common pitfalls and how to avoid them. And, of course, we'll discuss the value of having professional assistance to guide you through this process, ensuring that your path to vacation rental is as smooth as an Atlantic breeze wafting through the Canary Islands.

So, dive into this article and discover how you can transform the process of obtaining a vacation rental licence in the Canary Islands from an overwhelming challenge into a well-navigated journey.

While this process might seem complicated, you don't have to go it alone. If you're not comfortable or don't have the time to manage all these details, speaking with a consultant can be a great help. At Pambnb, we can accompany you on this journey and ensure that everything is done correctly. This way, you can focus on what truly matters: offering your guests an unforgettable experience at your property.

Let's get started!

Minimum Equipment Requirements

According to Article 10 of Decree 113/2015, there are legal minimum equipment requirements that your property must meet. Here, we present a clear and concise list of these requirements, divided by areas of your property, to make it easier for you to ensure everything is in order.

General Equipment:

  • Interior safety lock on access doors.
  • First aid kit.
  • Iron and ironing board.

Bedroom:

  • Bedside reading lights.
  • Effective blackout system.
  • Non-deformable hangers of a uniform style.
  • Double or single beds of the minimum stipulated dimensions.
  • Sufficient bedding and linens per guest: mattress protector, sheets or similar, blanket, pillow, bed cover.
  • If the booking is for more than a week, another set of bedding per guest will be provided for each week or fraction thereof.

Bathroom:

  • Mirror.
  • Hairdryer.
  • Toilet paper holder.
  • Bathmat.
  • Adequate storage for toiletries.
  • Sufficient towel rails, hangers or hooks.
  • System to prevent water from escaping the bathtub or shower tray.
  • Bath and hand towels for each guest.
  • If the stay is longer than a week, another set of towels per guest will be provided for each week or fraction thereof.

Kitchen:

  • Oven or microwave.
  • Coffee maker.
  • Dishes, cutlery and glassware appropriate to the capacity of the guests.
  • Sufficient cookware and linens for the handling and consumption of food.
  • Cleaning utensils.

With these elements in place, you'll be well-prepared to meet the minimum equipment requirements for your property. Now, let's move on to the next step: Registering your property with the Inland Revenue known as the “Agencia Tributaria Canaria“ under the IAE 685 heading.

Although the preceding list outlines the basic equipment requirements that you must comply with under Article 10 of Decree 113/2015, don't simply stick to the basics. Think about kitting out your holiday rental property with extra amenities to provide enhanced comfort for your guests and inject some unique personality into your rental. Incorporating elements that surpass your guests' expectations can significantly improve their experience and set your property apart from the competition. For ideas on how to do this, check this article out.

Preliminary Activity Consultation with the Council 

The first crucial step towards obtaining a licence for your holiday rental in the Canary Islands is to carry out a Preliminary Activity Consultation with the Council, known as the "Consulta Previa de Inicio de Actividad". For a fee around €100, this consultation allows you to check with your local council whether your intended holiday rental activity is permissible in your specific property.

Depending on the council, the consultation can be conducted digitally, with a digital certificate and card payment. To carry it out, you need to fill in a form detailing the activity you will undertake. Along with this form, you must present a document proving your right to use the house for this activity. This document could be the property deed or a rental contract.

Additionally, you'll need to provide photographs of the property's exterior (mainly the entrance) and interior. A picture of the cadastral map showing the exact location of the house is also required. You can take a photo of the map and add an arrow to point out your property.

The response time for this consultation is generally swift, though it can take up to 30 days. It's crucial to remember that the Preliminary Activity Consultation is a key step in the licensing process. Without it, you can'tproceed with the other necessary steps to legalise your holiday rental.

Registering with the Tax Office: IAE 685 Category

The next step in your holiday rental procedures is to register with the Tax Office, known in Spanish as the “Agencia Tributaria Canaria”, under the IAE 685 Category for Business Activities: Extra-Hotel Tourist Accommodation.

To register, you'll need to fill in form number 400, which can be done online with your digital certificate. This process is approved instantly, making the procedure much more manageable.

It's essential to note that the holiday rental activity is subject to the Canary Islands General Indirect Tax (IGIC). Depending on your total income, you may be able to register on the Small Business Owners Register (REPEP), which can provide certain tax benefits. If you're ready to proceed, here is the link for submitting your tax declaration. Keep in mind that the website is in Spanish

If you're not comfortable handling these procedures yourself, speaking with an advisor is highly recommended.

Check out our detailed article about the tax paid on holiday homes in the Canary Islands.

Data Communication to Police Departments

As per Royal Decree 933/2021 of 26 October, all individuals or entities conducting extra-hotel tourist accommodation activities are required to provide certain information to authorities.

It's vital to remember that data communication to police departments should be communicated within the first 24 hours after their arrival. This registration is carried out through the SES.HOSPEDAJESplatform, enabled by the Ministry of the Interior.

You can register on this platform with your digital certificate through the following link, keep in mind that the website is in Spanish.

In addition to being a legal requirement, this also provides added security. If issues arise with your guests, it will be much easier to handle the situation if you've already shared their data with the authorities.

Responsible Declaration of Commencement of Holiday Rental Activity 

Once you have completed the previous steps, you're ready for the final official procedure: the Responsible Declaration of Commencement of Holiday Rental Activity, known in Spanish as the "DeclaraciónResponsable de Inicio de la Actividad de Vivienda Vacacional". This is a relatively straightforward process that will only take a few minutes of your time.

The Responsible Declaration is an assertion on your part that you comply with all regulations and legal obligations associated with holiday rental. It's crucial to understand that the authorities do not verify the veracity of your declaration at the time of its submission, so it's your responsibility to ensure that all the information provided is accurate and complete.

Once you have submitted this declaration, you will receive a document with your licence number, and you are legally authorised to begin operating your holiday rental. If you're ready to proceed, here is the link to submit your declaration. Please note, the website is in Spanish.

Getting Professional Assistance with Pambnb

Managing a holiday rental can be a challenge, even for the most experienced property owners. Handling bookings, maintaining the property, customer service, and managing taxation are just a few of the tasks that require time and expertise. Why not leave it in the hands of professionals?

At Pambnb, we pride ourselves on being a holiday rental management agency that goes above and beyond. With years of experience in the industry, we've dedicated ourselves to helping property owners like you manage their property in the most efficient and profitable way. We stay up to date with the latest regulations and legal changes to ensure that your property meets all the current standards.

Our team of experts takes care of everything from managing bookings to maintenance and customer service. Additionally, we have experts in rental property taxation, so you can rest assured that your property is being managed in accordance with tax regulations.

But what sets us apart at Pambnb is not just our experience and technical knowledge, but our dedication to helping you maximise your earnings. Thanks to our price optimisation strategies and our active management of bookings, we strive to ensure that your property is rented out for the maximum amount of time and that you get the highest return on your investment.

With Pambnb, you don't just get a team of trusted professionals managing your holiday rental property, but also invaluable peace of mind. Let us take care of the hard work while you sit back and watch your profits grow. With Pambnb, your property is in good hands.

Common Mistakes in the Holiday Rental Licensing Process and How to Avoid Them

When initiating the management of a holiday rental, it's easy to fall into legal and bureaucratic pitfalls. A common mistake is not fully understanding the legal requirements, or even worse, incorrectly declaring in the Responsible Declaration. It's crucial to understand that the state does not verify the truthfulness of your declaration at the time of submission, meaning it is your responsibility to ensure that all the information provided is accurate and complete. Following the submission of the declaration, the license is granted, but if any non-compliance is discovered in the future during a control, the consequences can be severe. 

Another common error is underestimating the time it takes to obtain the license. Many owners, eager to start renting, begin to do so during the licensing process, before receiving official approval. This is a serious mistake that can result in significant penalties. Here is a detailed article on the risks of renting without the license.

Moreover, failing to meet certain home requirements, such as maintaining a proper record of travellers, can be a reason for fines. For instance, not having a record of travellers could result in a fine ranging from 601 to 30,000 euros.

At Pambnb, we can assist you with the licensing process. We work with professionals who are specialised in these matters and can help you navigate these complicated legal processes. They'll help you avoid costly errors and ensure a smooth holiday rental experience. Don't let legal obstacles prevent you from enjoying the benefits of your holiday property. Get in touch with us today.

Conclusion: Successfully Navigating the Licensing Process

Throughout this article, we've delved deeply into the fundamental aspects of successfully obtaining a holiday rental license. We've addressed the significant risks associated with renting without a license and highlighted the importance of a meticulous application process. We also emphasised the need for a thorough understanding of the legislation to accurately complete the Responsible Declaration, a common error that can lead to serious complications. Lastly, we highlightedthe importance of keeping a comprehensive record of travellers. Each step, each detail, is significant in your journey to become a successful holiday property renter.

But obtaining the license is just the beginning. Once you're ready to rent, the challenge shifts to successfully managing your holiday property. This task extends beyond handling reservations on multiple platforms. It involves providing exceptional service to guests from their arrival to their departure, dealing with any issues that may arise, ensuring the property is always in top condition, and being available to always answer guest inquiries.

That's why at Pambnb, we don't just help you get your license, but we also offer a Comprehensive Management service for your holiday rental property. We take care of reservation management, property maintenance, customer service, and much more, so you can focus on what really matters: obtaining the best returns from your holiday rental investment.

The journey towards success in holiday property renting may seem overwhelming, but with the right guidance and support, it becomes a voyage filled with opportunities and rewards. You don't have to do it alone. At Pambnb, we're ready to work with you, facilitating each step of the process. Let's start this journey together!

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