Posted on 24 May 2017
Buying a pad in Andalucia that you can rent out probably seems like a great investment, and you’re probably right to have that mindset. More than 10 million tourists visited Spain’s second largest region last year alone; giving you more than a steady supply of potential tenants. However, before you sit back and watch the euros roll in make sure check the rental rules and regulations you will need to adhere to; otherwise you could be hit with a hefty fine. Of particular interest is the relatively new requirement to register rental property with the local authorities.
Since May 2016 anyone advertising their holiday home as tourist accommodation in the region has been required to register with the Junta de Andalucia (Andalusian government). Officially known as Decree 28/2016 (viviendas con fines turísticos) this rental law makes it compulsory to obtain a VFT number before entering the rental market.
So what exactly is a VFT number and how do you go about getting one?
What is a VFT number and will you be required to get one?
This unique legal registration number confirms your rental property is compliant with Article 7.1 of the Andalucia Touristic Laws. If you’re planning to advertise and rent out your property on a short-term – maximum 60 days – basis to paying guests you will need to obtain one.
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Minimum requirements to register a holiday rental
- Provide air-conditioning in the main rooms of properties rented between May and September.
- Provide a heating system that maintains a temperature of 19 degrees in properties rented between October and April.
- Provide adequate ventilation in all bedrooms and ensure all windows and patio doors have some means of obscuring light.
- Provide adequate furnishing for the maximum occupancy.
- Provide adequate bed linen and cleaning upon arrival and departure of guests.
- Provide a medical kit.
- Provide tourist information.
- Provide an emergency telephone number
(Marbella on the Costa del Sol)
How to register
If you have an electronic signature (firma electrónica) you can complete the whole process online. Otherwise you will be required to complete an online registration form, print it off and present the completed form at your regional tourism department, or submit it via the post office (correos).
Once registered on the guardia (police) and Junta de Andalucía systems your property will be inspected during the application process. If your property does not meet the minimum requirements of the decree you will be given one year to rectify any issues.
Having passed the inspection you will be assigned the all-important VFT number; meaning you can begin cashing in on the rental potential of your property. The entire process should take between 1-3 months from submitting your registration form.
Failure to comply
Failure to comply with Article 7.1 of the Andalucia touristic laws will result in fines and sanctions being imposed. These are divided into three broad categories:
- Light offence: either a written warning or a fine up to €2,000.
- Serious offence: fines from €2,001 up to €18,000. Premises may be shut down temporarily at the local authority’s discretion (for periods less than 6 months) and the rental licence may be revoked temporarily.
- Very serious offence: fines from €18,001 up to €150,000. The premises may be shut down temporarily at the local authority’s discretion (for 6 months to 3 years).
If sanctions are imposed two or more times within a three-year period for very serious offences, the property will be struck off the register indefinitely.
Why is the new Decree so important?
This new law aims to reduce income tax fraud in the local rental market. By registering rental properties and issuing what is essentially a licence to rent, the local authority will be able to manage the region’s saturated rental market more effectively.
For more about living and renting your property in Spain, visit Spain Property Guides where you can download your FREE Spain Buying Guide