Many of our clients, that own a country home in Andalusia, cover the running costs of their house by renting it out during the holiday season. Other clients of ours moved to Andalusia to semi-retire and decided to run a rural hotel or a Bed & Breakfast with the purpose of generating income. The Junta de Andalucía promotes rural tourism, yet the rules are not always clear to everyone.
Recently the Junta de Andalucía set boundaries for renting out private villas and houses in urban areas. This is not to be confused with the legislation for renting out properties on rustic land. Registration is also necessary yet the regulation is different.
Rental accommodation on the Andalusian countryside
The most common accommodation types on the Andalusian countryside are the ‘Casa Rural’ or the Bed & Breakfast, where rooms are rented out per night. Another common accommodation type is the ‘vivienda turística rural’: a country house that is rented out for self catered holidays. A casa rural is set up as a proper business, meaning proper bookkeeping is involved. Renting out your private house is not seen as business so bookkeeping is unnecessary but you do have to declare rental income in your tax declaration.
In a casa rural you would also be allowed to provide other services. You could offer breakfast, or dinner, sell drinks, organise excursions and sell local products, for example. Furthermore, a casa rural can function all year round, whereas renting out your private villa is limited to 90 days per year. Remember you are allowed to advertise it all year round.
Registering your rental accommodation
In the old days no-one really cared about registering their accomodation with the tourism department of the Junta de Andalucía, nowadays it is getting more important. Rental agents require the registration number to advertise your property for example. It is not a complicated matter yet it requires an administrative process. You can follow this through yourself, downloading the forms from the virtual office. We would recommend you to hire an expert to do this for you. You can consult your lawyer or gestor to assist in this matter.
To accommodate our clients we have formulated a more extensive guide where the types and requirements are described in more detail. It also gives a better insight in the registration process and the fiscal consequences. Click here to read the Country Property Rental Guide.
Danielle Ernstsen | 23rd March 2023
