Holiday rentals. Valencia region. Registration process and taxes

Types of Property Rentals in the Valencian Community

If you’re planning to rent out your property in the Valencian Community, it’s important to understand the differences between the main types of rental contracts and their legal and tax implications.

🔹 1. Tourist Rental (Alquiler Turístico)

Definition:
Short-term rentals aimed at tourists and holidaymakers.

Duration:
Typically stays of less than 11 days are automatically considered tourist rentals from July 2025 onwards.

Requirements:

Must be registered in the Tourist Rental Register (HRVR) of the Valencian Community.
A certificate of occupancy (Cédula de Habitabilidad or Licencia de Ocupación) is mandatory.
The property must meet specific quality and equipment standards.
An urban compatibility certificate from the Town Hall is also required.

Restrictions:

Cannot rent out individual rooms — only the full property.
The owner cannot reside in the property while it’s being rented.

Advertising:

The registration number must be shown in all listings, ads, and contracts.

Fines:
Failure to comply can result in:

Fines up to €90,000
Suspension of rental activity for up to 3 years

🔹 2. Permanent Rental (Alquiler Permanente)

Definition:
Long-term contracts (usually 1 year or more) for residential purposes — the tenant uses the property as their main home.

Regulation:

Governed by Spain’s Urban Lease Law (LAU).
No special registration or tourist licence required.
You are always allowed to rent under this category.

Taxation:

Rental income must be declared on your annual tax return if you’re a resident, or on form 210 if you’re a non-resident.

🔹 3. Seasonal Rental (Alquiler de Temporada)

Definition:
Medium-term stays (e.g. students, workers, property hunters) who do not intend to make the property their main residence.

Duration:

Typically from 2 to 11 months
From July 2025, any stay from 11 days onward may fall under this category (unless it’s purely touristic).

Advantages:

Not subject to strict tourism regulations.
Higher rental yields than long-term rentals.
Tenants usually take better care of the property than tourists.
You keep more flexibility while avoiding red tape.

Summary Table

Type of Rental	Registration Required	Duration	Use	Regulation
Tourist Rental	✅ Yes (HRVR)	Up to 11 days	Holiday/tourism	Decree 92/2009 + Law 15/2018
Permanent Rental	❌ No	Long premises	Main residence	Urban Lease Law (LAU)
Seasonal Rental	❌ No (if not touristic)	11 days – short periods	Temporary (non-tourist) stay	Urban Lease Law (less strict)

Legal Requirements for Tourist Rentals

Legal Basis:

Decree 92/2009 of 3 July 2009
Law 15/2018 of 7 June – Urban compatibility certification

Property Must:

Be fully available for rent
Be advertised through tourist platforms or agencies
Provide services such as cleaning, linen, luggage storage, etc.
Have a habitation certificate and meet minimum standards

Registration Procedure (Tourist Rentals)

Fill out the form Download here
Submit it to the relevant Tourism Office (Alicante, Valencia, or Castellón)
Include the licence number in all your ads and listings
Get additional documents:
- Urban compatibility certificate
- Energy efficiency certificate
- Architect’s compliance report (recommended)
- Home insurance
- Civil liability insurance

Tax Obligations

A) Non-resident or resident?

If you are a Spanish tax resident, declare rental income in your annual IRPF (Form 100).
If you are a non-resident, use Form 210:
- Quarterly for rental income
- Annually for periods the property is not rented

B) VAT (IVA)?

NOT subject to VAT if you only rent out the property without additional services.
YES – VAT applies if you offer hotel-like services (cleaning, laundry, meals, etc.):
- 10% VAT
- Quarterly VAT return (Form 303)
- Must register with the Tax Agency

Example:

Rental income (May–August): €6,000
Expenses deductible (insurance, mortgage interest, utilities, etc.): €1,599.7
Net taxable income: €4,400.3
Tax payable (19%): €836.06