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Property News

GAENew Rental Laws Fuerteventura

Late May 2015 a new Law was passed in the Canary Islands, permitting properties on Residential complexes to be used for holiday purposes so long as a Licence was obtained and any income earned from the rental of the property is declared in the Tax Office in The Canary islands.

Regarding the new rental laws, a lot of people do not understand and are being misled regarding the new rental laws as it is so new.

There are two types of letting

  • Touristic Letting
  • Other letting

Basically there are areas that have been discounted for letting, there is a map but it is not very clear and none the less you have to check with the Town Hall to properly check a properties ability to qualify for touristic / Holiday Let.

Because if you are not properly registered fines can be imposed of up to 60,000 euros and the Tourist Board have already employed 19 more inspectors.

Key Points:

Every owner has to submit an application to the town hall to apply  for their property to be included in the ability to rent to tourists and the owner has be registered with the Spanish Tax authorities to pay the required taxes.

Process :

Below is an outline of some of the processes and potential associated costs:

Properties on Residential complexes that want to be used for holiday purposes must have a Licence and any income earned from the rental of the property has to be declared in the Tax Office in The Canary islands.

The procedure is time consuming and can be little complicated, which is why we are offering our clients a service and accountancy / legal package to apply and subject to qualification obtain this Licence.

We can assist all through the process to achieve this from application to the end of the process for a fee of €415. 

Paperwork:

Should you not have any of the paperwork required (as identified below), we can obtain it on your behalf, but at an additional cost.

To submit an application for a Licence, we require the following documentation:

Escritura - Copy of the Deeds to your property

Licencia Primera Ocupación 

Cedula de Habitabilidad –

These are issued by the Town Hall (Ayuntamiento) and state that the complex and property are fit to be occupied.

Recibo IBI – Copy of the rates bill issued by the Town Hall (Ayuntamiento)

Passport AND NIE

Tax Office Requirements:

Alta IAE – Tax Office (Please see explanation below).

As noted above, all income earned from the rental of the property will have to be declared to the Tax Office here in Fuerteventura.

In order to do so, you must be registered within the tax system as running a business / economic activity for the purpose of letting.  This can be a lengthy process and of course requires an understanding of Spanish (if an individual wishes to undertake it themselves) should you not be already registered or speak Spanish, then we are able to do so on your behalf at an additional cost of €125.

YOU NEED TO BE REGISTERED WITH THE TAX OFFICE BEFORE YOU CAN APPLY FOR A LICENCE.

Process / Costs Summary:

Should you wish to employ our services to obtain a Licence, we ask that you please arrange for payment of our fees of €415 plus €125plus IGIC (Canarian tax at 7%) if you are not already registered with the Tax Office here in Fuerteventura for the purposes outlined above.

Ongoing:

Ongoing you will have to submit a tax return annually and again this is a service we can provide ( NOTE : Even if you are not letting you still have to submit an annual tax return, based on your ownership of your property here in the Canary Islands ) again we are able to provide this service to you via our professional advisors please contact us for a quotation.

Property Standards:

An important point of note is that there is certain standards that each property must comply with for letting and must be maintained to ongoing, this is very important that each property comply to the standards set, again we can help with all of these points and specific requirements..

One Important Point:

You cannot identify if a property will qualify for Holiday Letting unless you go through these processes outlined above or the previous owner has already obtained the permissions, but of course once a Licence is obtained this will make the property much more valuable.

I hope this helps to give you a clearer picture of the new laws and the processes involved as always we are here to assist and we look forward to hearing from you should you require our help to apply for your properties proper licences ..

GoldAcre Estates S.L   For more information email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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