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Spanish Holiday Rentals as Homes for Touristic Use in Andalucía
Let’s take a look into the future. Are you the owner of a property in Málaga, Benalmádena, Fuengirola, Mijas, Marbella, Estepona, Sotogrande or any other town along the Mediterranean coast and you rent it out or you are thinking of renting it out as a holiday home?
Then you might have heard rumours that there is a law in Spain that obliges the owner to comply with a series of requirements and some additional measures in order to rent it out.
In fact this is regional: a Spanish law does not exist yet, but the legislative bodies of Andalucía’s regional government (Junta de Andalucía) are studying and debating the draft regulations. The definitive version and subsequent approval is expected to be ready by the end of 2014.
It all started with modifications made to the current (state) Urban Leases Act that was modified by means of the Spanish Law 4/2013, of 4 June, on measures to promote and increase the flexibility of the residential rental market in Spain. Said law modifies certain provisions of the current Urban Leases Act, amongst others article 5. This article determines to which kind of leases this law is considered not to be applicable.
Specifically those stated in section e) are not included: The temporary lease of the total use of a furnished and equipped property for immediate use, commercialised and promoted through tourism channels with profit-making purposes and subject to a specific regime from the sector-based legislation.
The law leads us to a first conclusion: as long as this specific regime has not been approved, this kind of holiday renting will remain regulated by the provisions of the Urban Renting Act as well as by the provisions of the Law on Leases of non-residential uses. In accordance with article 3, section 2 of this law: Especially the leases of Spanish properties for seasonal use, either for the summer or any other season, will be considered non-residential use leases.
Therefore, it shall not be required for the time being to fulfil any “special” conditions or requirements to rent out a house as holiday home in Spain. But time goes by and, as noted before, sooner or later this law might be approved and might come into force.
License of First Occupation in Spain
When a client instructs our law firm in Marbella to study the legal situation of a property they would like to acquire, one of the essential documents to retrieve is the Spanish Licence of First Occupation (LFO) corresponding to this property.
The Spanish LFO is a document usually issued by municipal authorities (municipalities). It aims to ensure that the building in question complies with the conditions imposed by the (not expired) building licence permission, which would have been granted at the commencement of the works and the conformity of these works with the technical project that was the basis for granting the building licence. In addition, with the LFO, we are able to confirm that the building’s construction complies with the appropriate health and safety standards.
The essential subject of this licence is the initial occupation and use of buildings as well as the elements adjacent to them (such as storage rooms and garages, which are an integral part of the whole building).
The pertinent LFO in Spain is also required for those works of extension, modification and rehabilitation involving a technical project and a necessary perusal of health and safety by municipal technicians. The Licence of First Occupation is necessary for the Spanish declaration of the new building title which, together with the final building certificate issued by the architect, will be required for execution of the deed.
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