How to Set Up a Bed and Breakfast in Andalusia: Legal Guide for Foreign Investors

Starting a Bed and Breakfast (B&B) in Andalusia is an increasingly attractive option for foreign property buyers and lifestyle investors seeking to combine a new way of life with a profitable tourism business. However, Spain—and particularly the region of Andalusia—applies a set of strict regulatory, tax, and zoning rules to accommodation services that often differ significantly from the B&B model known in other countries.

This comprehensive legal guide is designed to help you understand the requirements and challenges of setting up a B&B in Andalusia, with special emphasis on licensing, tax treatment, regional regulations, and what to expect when offering meals to guests.

1. What Is a Bed and Breakfast in Spain?

Unlike Anglo-Saxon jurisdictions where B&Bs are clearly defined and lightly regulated, the concept of a B&B in Spain is not legally recognised as a distinct hospitality category.

In practical terms, a B&B in Spain is usually understood as:

A private home, often rural or semi-rural,
Operated by its owners,
Offering overnight accommodation,
With optional breakfast or other meals,
And a personal, family-style guest experience.

However, offering food or additional services to paying guests implies serious legal implications under Spanish and Andalusian hospitality laws.

2. Why Choose Andalusia?

Andalusia is one of the most visited regions in Spain, with its warm climate, historical cities (Seville, Granada, Córdoba, Málaga), rural charm, and relatively low property prices.

Foreign owners often acquire country houses (fincas) or large villas and seek to host tourists to supplement income or fund property maintenance. A B&B allows combining residence and business—but not without complying with the rules.

3. Understanding the Accommodation Categories in Andalusia

The Andalusian Tourism Law (Decree 28/2016 and Decree 20/2002) defines specific categories of tourist accommodation. The type of registration and licensing you require will depend on how you intend to operate:

A. Vivienda con Fines Turísticos (VFT) – Tourist Homes

Urban apartments or homes rented short-term.
No services like meals or daily cleaning.
No on-site presence required.
Easy registration but strict inspections and fines if unregistered.
Cannot be used in rural or isolated areas.

B. Vivienda Turística de Alojamiento Rural (VTAR)

Entire rural homes rented to tourists.
Maximum of 3 dwellings per building and 20 guests in total.
No catering allowed.
Designed for part-time hosts not providing additional services.

C. Casa Rural (Rural House)

Registered as a business with hospitality services.
Offers meals, cleaning, or activities.
Requires zoning permission, activity license, tax registration, and compliance with health and safety standards.

Important: Only Casa Rural can legally offer breakfast and other meals. VTAR and VFT cannot offer catering services unless fully licensed as a hotel or Casa Rural.

4. Can I Serve Meals in My B&B?

Providing breakfast, lunch, or dinner to paying guests is not a minor detail in Spain—it triggers an entirely different regulatory regime. This is where many foreigners are surprised.

Legal Requirements to Serve Meals:

You must obtain a hospitality license (licencia de apertura de restaurante o alojamiento con servicios).
The kitchen must meet health and hygiene regulations, similar to restaurants.
The property must comply with urban planning and zoning requirements, allowing for business activity.
Food handlers must complete certified training courses.

If you serve food without a license, you may face fines, closure orders, and legal liability.

5. Planning Permission and Zoning Laws

Before you begin, verify with the local Ayuntamiento (Town Hall) whether the property:

Is zoned for commercial or hospitality use.
Complies with the urban plan (Plan General de Ordenación Urbana – PGOU).
Can legally be used for tourism.

Some rural properties are considered “outside urban planning” (fuera de ordenación), meaning that although legal for private residence, they cannot be legally used for tourism businesses or licensed for public access. In such cases, only VFT may be possible (if at all), and Casa Rural status is excluded.

6. Registration with the Andalusian Tourism Registry

Any legal tourist activity in Andalusia must be registered in the Registro de Turismo de Andalucía (RTA).

Basic Requirements:

Property must be legally built and have an occupancy license.
Sufficient bedrooms and bathrooms.
Heating or air conditioning, depending on the season.
First aid kit, complaint forms, fire extinguisher, etc.

Once registered, you will receive a registration number, which must appear in all advertisements (Airbnb, Booking, etc.).

Failure to register can result in fines of up to €150,000, especially if detected during inspections.

7. Taxation and Fiscal Issues

A. Income Tax

Casa Rural: Treated as a business (actividad económica), taxed under personal income tax (IRPF) or corporate income tax.
VTAR / VFT: Treated as private rental income (rendimientos del capital inmobiliario), taxed at your applicable rate.

B. VAT (IVA)

Tourist rentals are generally exempt from VAT.
If you provide hotel-like services (catering, laundry, daily cleaning), you must charge 21% VAT and file quarterly returns.

C. Local Taxes

Annual IBI (property tax) and garbage collection fees apply.
You may be subject to tourist taxes if implemented in your area.

8. Social Security and Employment

If operating as a Casa Rural, and you are managing the business personally (serving meals, cleaning, guest check-in), you are likely required to:

Register as self-employed (autónomo) in Spain.
Pay monthly Social Security contributions.
File periodic tax returns (quarterly and annually).

If you hire employees, you must comply with Spanish labour law, including contracts, insurance, and salary regulations.

9. Marketing, Insurance, and Guest Records

To operate legally and professionally, consider:

Civil liability insurance.
Registering guests with the Guardia Civil (police) using their online platform.
Preparing house rules and cancellation policies.
Complying with data protection regulations (GDPR) if collecting client data.

10. Final Thoughts: Is a B&B in Andalusia the Right Project for You?

Running a B&B in Andalusia is a rewarding venture but requires careful legal and fiscal planning. The main obstacles are not in furnishing a charming house, but in ensuring full compliance with tourism, tax, food safety, and urban planning laws.

Summary of Key Legal Pitfalls to Avoid:

Operating unregistered tourist accommodation.
Offering meals without proper licenses.
Ignoring zoning or urban limitations (fuera de ordenación).
Assuming foreign B&B models apply identically in Spain.

Expert Legal Support for Your B&B Project

At TLA Corporate, we specialize in helping foreign clients acquire, license, and operate legal tourism projects in Andalusia and throughout Spain. From property due diligence, to zoning verification, tourism licensing, fiscal structuring, and B&B setup, our legal and tax team will ensure your project is legally sound and profitable.

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