Are you considering buying a second home that you can also rent out as a vacation property when you are not staying there? Then this blog is for you! We provide an overview of the process for legally offering your property while complying with local and regional regulations. Together, we protect you from the consequences associated with illegally renting a vacation home. Follow this step-by-step guide to obtain a permit.
Vacation Rental Process
1. Registration Request
The first step is to register your property with the municipality. This includes checking whether your property meets the local requirements for vacation rentals. Often, a technical report prepared by an architect or engineer must be submitted. You will also need a Cédula de Habitabilidad (habitation permit), which proves that the property meets the minimum habitation standards. Additionally, you must check whether vacation rentals are allowed according to municipal regulations in your area.
2. Declaration to the Cabildo (Tenerife Government)
After obtaining the municipal permit, the next step is to register a responsible declaration with the Government of the Canary Islands. This declaration confirms that your property complies with municipal regulations for vacation homes.
In this declaration, the owner states that they meet all legal and technical requirements established for the operation of vacation rentals. By signing this declaration, the owner commits to continuing to adhere to these standards as long as the property is used for vacation rentals.
3. Complaint Forms for Renters
An often-overlooked but legally required element is the availability of complaint forms for your guests. Many renters are unaware of this because not all landlords comply with the requirements for legal rentals and therefore do not provide these forms. These forms are required under consumer legislation, and failing to provide them can result in fines. So make sure to always have a complaint form ready for your guests.
4. Registration in the Guest Registry
Another important obligation is to register your property in the guest registry of the Ministry of the Interior. This registry is essential for safety and is a mandatory part of the regulations. The process includes:
- Daily Registration: This data must be registered daily in the Ministry of the Interior's system.
- Access to the Registration System: You will need access to the electronic registration system, usually using a digital certificate.
- Data Collection: When checking in guests, you must collect personal information from all guests over the age of 16, such as name, identification number, and date of birth.
- Data Retention: You are required to keep a copy of the registrations for a certain period, usually up to three years, in case the authorities wish to verify them.
Failure to comply with these registration obligations can lead to hefty fines or even the suspension of your rental permit!
5. Tax Obligations for Vacation Rentals in Tenerife
In addition to the administrative and legal requirements, you must also fulfill your tax obligations when renting out a vacation property.
- IGIC Declaration: (quarterly VAT declaration)
- Registration with the Canary Tax Agency: Model 400 (form to register the start, modification, or cessation of activities in the Canary Islands)
Conclusion
Renting your property as a vacation home requires a series of legal steps and obligations. By correctly following these procedures, you ensure that your property is legally registered and optimally prepared to welcome guests. Moreover, you avoid fines and other legal issues.
Do you want more information or assistance with the process? Contact us for professional advice and support!