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Holiday rentals in Spain: what expats should know

In the wake of recent inaccurate reports in the UK press about the banning of holiday rentals in Spain, The Local talks to property expert and blogger Louise Brace to set the record straight on what expat homeowners really need to focus on.

Holiday rentals in Spain: what expats should know
Spain's new holiday rentals law: It's about a licence fee, holiday home insurance, safety/standards regulations and declarations of earnings. Photo: TMgrup/Flickr

In June 2013, Spain overhauled the rules for its booming private holiday rentals market, handing over control of the sector to each of Spain's 17 regions. 

The government said the move was about improving the quality of Spanish tourism while many saw it as a way for them to harvest more tax.

Whatever the reasons, the changes sparked plenty of confusion among Spain's expat homeowners.

In December, several UK newspapers inaccurately reported on a "ban" on home rental in Spain. Here The Local speaks to Malaga-based property expert Louise Brace about the current state of play. 

What impact did the modified holiday rentals law initially have on your holiday rentals company Spain-Holiday?

Since the law was passed, we have received hundreds of calls from clients who didn't know how the changes to LAU (Ley de Arrendamiento Urbanístico) would affect renting legislation in their region.

We took it upon ourselves to reassure them by going out to all 17 regions within Spain and finding out what changes had been or would be carried out in the coming months.

There was a great deal of confusion and panic surrounding the new requirements among our expat homeowners.

Why was there a sort of ‘mass hysteria’ among British homeowners in Spain last month?

Well, although the amended law was passed in June 2013, an article published in one of the UK’s main newspapers last December put doubts in many homeowners’ minds.

The article was by no means factual enough, nor did it take into consideration the differences between all 17 Spanish regions.

But the misinformation spread like wildfire among a number of other British papers, who ran the ‘story’ with dramatic headlines like 'Brits banned from renting their homes in Spain'.

We felt it was our duty to set the record straight and make the distinction between fact and fiction in a detailed piece on our home rental blog RentalBuzz.

So could you tell us in a nutshell what the new home rental law actually involves?

There are four main points: a licence fee, holiday home insurance, safety/standards regulations and declarations of earnings.

Every region in Spain has different requirements at present and not all regions have introduced changes as yet.

We offer a more detailed breakdown on our site with information about Asturias, Balearic Islands, Valencia, Canary Islands and Catalonia.

We're keeping close contact with all the regional governments so as soon as we have concrete information on their rental laws, we publish it online.

There's also making sure you check at your local town hall (ayuntamiento) to find out the latest where you live.

What is the general opinion of this new law? Is it seen as too restrictive or is it justifiable?

It’s too early to determine what everybody thinks of it, as in some regions it hasn't even gone into force.

Our view at Spain-Holiday is that it will be good for homeowners in the long run. The Spanish government is essentially looking to make the sector more professional and similar legislation is already in place in countries like the UK.

Property owners have to get used to it, but I think that within a couple of years, once the dust has settled, it will become a run-of-the mill procedure.

Keeping in mind all the legal muddles and delays between the different Spanish regions, what could Spain’s government have done better?

They could have provided each autonomous region with a clear set of guidelines before handing over responsibility for the new law’s implementation.

Some local governments may be short-staffed, have few financial means or simply no experience with this kind of bureaucratic process.

How has Spain-Holiday adapted its website to cater to these legal changes?

Aside from an in-depth analysis of every aspect of the new legal requirements being covered in our RentalBuzz blog, we've also introduced a small module that ensures homeowners introduce their license number if their property is in a region where the law is already in place.

Expats in Spain have been told to take care to avoid dodgy operators when obtaining new home energy efficiency certificates for their properties. Have you received any complaints about this?

Not as yet. In fact, it’s important that homeowners find out beforehand if their regional governments even require an Energy Performance Certificate.

Also, if your home was built post-2007 or you rent out your property for less than four months per year, you won't necessarily need one.

It's worth reading an in-depth article on energy certificates we have on our site just to find out whether you require one or not.

So six months on from Spain’s controversial new home rentals law being passed, how is business for Spain-Holiday?

To be honest, we are busier than ever at the moment, much more so than last year.

Why do you think that is?

I think many of those who are homeowners in Spain see holiday rental as a legitimate and successful way of cashing in during these difficult financial times — even more so now that the sector has become more regularized. 

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PROPERTY

BBQs, nudity and plants: What are the balcony rules in Spain?

Though many people hang laundry, plants, and flags from their balcony, in Spain the rules on what you can and can't do on 'el balcón' are not well-known.

BBQs, nudity and plants: What are the balcony rules in Spain?

Imagine the scene: you’ve just bought or signed the lease on your dream apartment. It’s bright and airy, with plenty of space, and even has a nice-sized balcony to get some fresh air on. You can do whatever you want there, right? 

Not exactly. In Spain the rules on what you can and can’t do on a balcony (even if it’s private) depend on a few factors, namely the regional and local rules, as well as getting the approval of the building’s homeowner’s association – known in Spain as la comunidad.

Some of them might just surprise you.

READ ALSO: ‘La comunidad’: What property owners in Spain need to know about homeowners’ associations

There are four main things or activities on balconies that could potentially put you on the wrong side of the local rules and even get you fined: barbecues, plants, laundry, and flags.

In all cases (even if you don’t think you’re breaking any rules) you’ll generally need to consider two things: firstly, does this affect or change the building’s façade? And secondly: will la comunidad allow it?

Barbecues

In Spain there is no national law prohibiting barbecues on private property, so in principle it is legal as long as the barbecue is lit in a private space such as your own balcony, garden or terrace, and not a shared space.

Often in Spain, the roof (usually referred to as la terrazza) is a shared space people use for storage and hanging their laundry, so be sure to check with the comunidad.

In terms of your own balcony, however, although there’s no law saying outright you can’t have a barbecue, you’ll need to take into account the rules and regulations in force in each locality or region. There may also be specific rules within the building that long-term homeowners have developed over the years.

As we will see, many of these low-level regulations are delegated to local governments and town halls in Spain, so the answer to these sorts of questions is usually: it depends where you are.

However, according to Article 7 of Spain’s Horizontal Property Law, “the owner and the occupant of the flat or premises are not allowed to carry out in it or in the rest of the property activities prohibited in bylaws, which are harmful to the property or which contravene the general provisions on annoying, unhealthy, harmful, dangerous or illegal activities.”

This basically gives your neighbours the right to complain about noise, smells, smoke and any possible fire risk in or around their building, which barbecues could plausibly fall under.

As with co-living anywhere in the world, regardless of the regional or local rules, employ some common sense: be reasonable, listen to neighbour’s concerns and take up any disputes with the President of la comunidad.

READ ALSO: What you need to know before having a barbecue in Spain

Plants

Again, with plants the responsibility falls on each local authority to set the rules. In Spain, most regions and town halls state that, as long as the architectural or structural elements of the building are not changed or weakened in any way, putting plants on your balcony is permitted.

However, note that many terraces and balconies do have maximum weight regulations that must be respected in order to guarantee their safety, which is 200kg per square metre. If this figure is exceeded (and it can be proved) you could theoretically be fined.

Laundry

Laundry lines criss-crossing the streets might be one of the more picturesque images of Spanish life, but the people doing it might actually be breaking the rules.

How do you know? You guessed it, it depends where you. You’ll need to check with your local authority on this one, though municipal regulations in Barcelona, Madrid and Valencia all regulate hanging laundry from your balcony, which is again outlined in the Horizontal Property Law.

This principally seems to be because it affects the façade of the building (a common theme when it comes to balcony rules in Spain).

In places with rules about hanging laundry from balconies, you could be fined up to 750 euros if you don’t comply with the rules.

However, according to Foto Casa, even if you live in an area where there are no bans or penalties against hanging laundry on the balcony, you’ll still likely need the permission of la comunidad.

READ MORE: Spain’s weirdest laws that foreigners should know about

What about flags?

Whether it be the Spanish flag, the Catalan, Valencian or Andalusian flags, or LGBT, trade union or football team flags, flags proudly hanging from balconies is another mainstay of Spanish life.

It’s also one of the more controversial ones too, especially within comunidad meetings. Hanging flags on the balcony, as well as allegedly altering the aesthetics and security of the building (the same concern as with laundry) often has ideological connotations that can cause conflict.

Again, as with laundry, hanging flags on the balcony will require the approval of all the owners within the community, something that must be agreed at a meeting, as per the Horizontal Property Law.

However, if the flag is placed inside the property, as it is a private property, fellow homeowners cannot oppose it, even if it is visible from the street, according to Foto Casa.

Nudity 

Article of 185 of Spain’s Penal Code only considers being naked at home to be obscene exhibitionism and sexual provocation if it affects minors, in which case it is punishable with a fine or up to a year in prison.

Therefore, you could technically sunbathe shirtless or naked on your balcony in most cases without getting into trouble, although it won’t necessarily go down well with your neighbours and/or flatmates and you be reprimanded for it.

READ ALSO: Can you go shirtless or wear a bikini in the street in Spain?

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