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PROPERTY

VUT, AT and VV: Why Spain’s holiday let categories matter to owners

Have you ever seen the acronyms VUT, AT and VV when it comes to renting out your apartment short-term to tourists? Confused and want to know what it all means and why it matters for you? Read on to find out.

Published: 19 June 2024 14:52 CEST
Updated: 22 June 2024 09:14 CEST
VUT, AT and VV: Why Spain's holiday let categories matter to owners
It's important to know the different classifications of tourist housing in Spain before deciding to let out your property. Photo: Jorge Guerrero/AFP

VUT stands for Vivienda Uso Turístico or Property for Tourist Use, while AT stands for Apartamento Turístico or Tourist Apartment.

Sometimes tourist apartments are called VVs or Viviendas Vacacionales (Holiday Homes). They have the same rules and classifications as ATs, but are just called by a different name.

These two categories above, although are similar, are actually different and mean different things for both those who want to rent out their properties and those renting them.

The main differences are in the legal requirements, in accordance with the regulations of each region they’re located in.

READ ALSO – UPDATE: Which cities in Spain have new restrictions on tourist rentals?

What are VUTs?

VUTs can be houses, apartments, chalets or individual rooms and they can be rented through agencies or directly from the landlord. They are rented out for days or weeks at a time to tourists, but are rarely rented out for months, because then they would then be considered as tourist apartments (ATs) or long-term lets instead.  

The exact amount of time they can be rented for typically depends on the rules in each different region in Spain. These regional regulations also determine if you need a tourist licence to rent out your property or if you need to register with an agency for example.

They can be someone’s habitual home, which is occasionally rented out on platforms such as Airbnb when they go on holiday for instance. Or a home that is only rented out to tourists during a particular season.

What are ATs?

ATs on the other hand are only for tourist use and are never used as someone’s habitual home as well. In order to be legal, they need to have a tourist licence, register with competent organisations, adhere to quality and security regulations and also provide services such as cleaning and possibly a reception or concierge.

Tourist apartments are governed by Royal Decree 75/1997, which regulates the legal regime for the control of tourist apartment establishments.

Again, each region in Spain has its own laws regarding these types of accommodations. Some places have limits on the number of them allowed, while others have regulations on where they’re allowed.

For example, Seville recently announced it wouldn’t grant any more tourist licences for apartments located in the Old Town neighbourhoods, while Barcelona hasn’t been issuing new ones for years.

Málaga has also introduced new rules that tourist apartments must have separate entrances and some regions only allow them on the first floor of a building.

What are the main differences between ATs and VUTs?

ATs are intended for tourism use, with usually a stay of no more than three months, anywhere above this time and it’s a long-term let.

VUTs as mentioned before are typically rented out for less than 30 days and in some regions, it can only be a maximum of five days.

If you have a VUT, it’s not required for you to provide professional services, like cleaning, although if you rent it out on a platform like Airbnb you will be expected to carry out these duties, even if you do it yourself.

But, remember the classification isn’t always up to you and what you intend to use the property for. For example, in Barcelona a tourist licence is needed for any rentals of fewer than 31 days and the property must be for tourism purposes only, therefore it can only be a AT and not a VUT.

What do I need to know regarding these classifications?

Basically, whether your property is a VUT or an AT, you need to contact your local authorities before you start renting it out to tourists for any length of time and find out what the local rules and regulations are.

If you’re a tourist, then you’ll know that ATs typically have more regulations than VUTs and offer more services, and you can be sure that they’re legal and have a tourist licence too.

If the property is a VUT and just rented out to holidaymakers occasionally, it’s important to find out what services, if any, will be included and if the property is operating legally. You can do this by asking them for their tourist licence number, if one is needed.

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TOURISM

Why Americans don’t need to tip so much in Spain

You may be used to tipping a lot in the US, but if you're an American tourist or resident in Spain or perhaps if you plan to move here, this article could save you a few euros.

Published: 26 June 2024 17:24 CEST
Why Americans don't need to tip so much in Spain

In the US, it’s customary to tip between 15-25 percent, but in reality, anything below 20 percent is considered to be a bad tip and staff may be offended thinking they’ve given you bad service if they receive less.

This will of course vary according to the state and the establishment. 

As an American, you’ll know that the main reason for this is because hospitality staff are often paid low wages and they rely on tips to top up their salary and make enough to live on. 

Americans on vacation or living in Spain, often wrongly assume that it’s a similar situation here, and because they are used to tipping up to 25 percent, they understandably leave a big propina – the Spanish word for tip.

READ ALSO: What are the rules on tipping in Spain?

But the working conditions and salaries are very different in Spain, so such a large percentage isn’t deemed necessary.

In Spain, hospitality staff are paid at least minimum wage which is €1,134 across 14 payments a year, and many times above this amount too, depending on the type of establishment they work in.

They do not rely on tips in order to make a living, and therefore tips are not necessarily expected, but welcomed.

The Spanish hospitality union reminds customers that it is not mandatory to leave a tip, adding that some consumers believe that this tip “replaces decent wages”.

This means in Spain it’s not actually customary to tip at all in certain situations.

If it’s a meal in a high-class restaurant, a 10 percent tip is typically given if the service is good. At standard restaurants, some people may leave their change or round up the bill if paying by card, but it’s not expected. And if it’s a bar or café, rarely any tip is given.

So for example, if your meal costs around €40, you may leave a small tip of €2-3, but it’s not calculated as an exact percentage.

READ ALSO: 13 things foreigners do that make Spaniards feel really awkward

Some may argue with this, however, saying that a tip should only be given if the food and the service are particularly good. If it it’s just average, they say that a tip shouldn’t be necessary at all. 

Not only do Americans not need to tip so much, but they could actually be creating a problem for locals and the industry as a whole, if they do.

Because of American tipping culture, some restaurants in Spain have begun asking between 5 and 10 percent in tips automatically, particularly in big cities like Madrid and Barcelona, or even adding smiley faces to bills with various percentages – 5 percent associated with a sad face and 20 with a happy one for example.

In an interview with Spanish news site El Mundo, the general secretary of Facua-Consumers in Action, Rubén Sánchez, believes this only tries to “create a feeling of guilt” for people who don’t want to leave anything behind.

He says, however, that asking for a tip in this way “is not an illegal act because it is not imposed”. He believes that asking for extra tips is “trying to take advantage” of the client so that, “somehow, they become the one who pays extra for a salary that is too low”.

Tips “cannot be a substitute for a decent salary”, he continues, not wanting Spain to become like the US.

On top of this, eating and drinking out is a very important part of life for Spaniards and if tipping of 20-25 percent is expected, many would simple no longer be able to afford to eat out.

The median salary in the country is €2,206, according to recent data from Spain’s National Institute of Statistics (INE). This pales in comparison to the average $6,228 Americans earn per month, according to the US Bureau of Labour and Statistics.

Yes, of course, the cost of living is cheaper in Spain because people earn less, but if you’re coming here as a tourist and creating a tipping culture, you’re also making it harder for locals to be able to afford to eat out in their own city.

What are your experiences of tipping as an American in Spain? Have you adjusted your tipping habits? Share your views with other readers in the comments section below.

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