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A Guide to Starting an Airbnb Business in Spain

Last updated on December 2nd, 2022

Spain is undeniably a beautiful city filled with interesting culture and delicious cuisine. The country’s economy has continued to grow by 4% and the number of tourist arrivals has surged by 6 million as of May 2022! Relatively, Madrid is one of the cities with the highest occupancy rate along with whopping annual revenue of €30,224 according to Airbnb occupancy rates by city. 

In this article, we will feature Spain’s rules and regulations (per autonomous region) and how you can purchase an investment property or put it up as a rental arbitrage. You will also learn how you can find a profitable area in Spain, Airbnb data, along with some of the most excellent Airbnb hosting tips!

Spain’s Rules & Regulations 

Before starting an Airbnb business in Spain, it’s important to understand the certain rules and regulations that you have to consider. Here are some of the major short-term regulations that you have to follow in Spain: 

–  A Tourist Use House License is required to offer apartments for tourists

No minimum or maximum term for short-term contracts (no longer than 11 months

– For non-resident landlords: liable to pay an income tax (25%

Certificate of Occupancy issued when the building is commissioned (Cédula de Ocupación or Cédula de Habitabilidad) 

– Pay rental income tax at a rate of 24% for non-residents 

The minimum renting period of 12 months. If you terminate your contract before the first six months, you will have to pay the remaining months of the year’s contract

Rules & Regulations per Autonomous Region in Spain

Since there are various short-term regulations per autonomous region in Spain, you will also have to go through each law to make sure that your expectations are met. Learn more about the general legislation, short-term rental policies, Airbnb data, and other relevant info for each major city in Spain:

1. Barcelona Rules & Regulations 

Barcelona is one of the most beautiful and photogenic cities on Earth. Here are some of the Airbnb rules in Barcelona:

A Tourist Use House license is necessary 

– Apartment types in Barcelona include anything with rental duration of fewer than 31 days. 

– Short-term stays are allowed for 30 days or more

2. Valencia Rules & Regulations

Valencia is known for its peculiar museums, quirky festivals, beautiful sunny weather, and fantastic sandy beaches. Here are some of the Airbnb rules in Valencia:

– Register & submit a formal notice to the Territorial Tourism Service (to get a registration number) 

– Accommodations are to be let out as a whole, it is prohibited to rent out individual bedrooms 

– Owners or managers of STR properties (aka tourist accommodations) are required to provide cadastral references for property

3. Malaga Rules & Regulations

Malaga is known for its extensive beaches, historical monuments, diverse museums, and a wide variety of leisure activities. Here are some of the Airbnb rules in Malaga:

– Register your short-term holiday rental online or apply in the local office districts 

– Property must be owned by a private individual from 1 – 60 nights 

– Holiday homeowners are required to have an Andalusia Tourist Registry Code (ATR) 

– Declaration of IRPF (income tax) – actividad económica 

– Must obtain a VFT number (legal registration) to confirm legal operation of short-term business

4. Sevilla Rules & Regulations

Sevilla is famous for its flamenco dancing and architectural designs and is the largest city in Southern Spain. Here are some of the Airbnb rules in Sevilla:

– Register your short-term holiday rental online or apply in the local office districts 

– Holiday homeowners are required to have an Andalusia Tourist Registry Code (ATR) 

– Must obtain a VFT number (legal registration) to confirm legal operation of short-term business

5. Marbella Rules & Regulations

Marbella is famous throughout the world for its glitzy image and glamorous nightlife. Here are some of the Airbnb rules in Marbella:

Register your short-term holiday rental online or apply in the local office districts

Holiday homeowners are required to have an Andalusia Tourist Registry Code (ATR)

– Duration of residential rental contracts can be freely agreed upon between the parties 

– If the agreed term is below 3 years, the contract will be automatically extended on the expiration of the contract term unless the tenant submits notice of termination of the contract within at least 30 days.

– Individual rooms are ALLOWED for let, unlike the city of Valencia

6. Granada Rules & Regulations

Granada is best known for its architecture and iconic monuments, especially the Alhambra. Here are some of the Airbnb rules in Granada:

Register your short-term holiday rental online or apply in the local office districts

Holiday homeowners are required to have an Andalusia Tourist Registry Code (ATR)

– Registration forms must be stored by landlords for a period of up to three years for the inspection of the Security Forces

7. Torrevieja Rules & Regulations

Torrevieja is extremely popular for its fantastic climate, beautiful beaches, and vibrant atmosphere. Here are some of the Airbnb rules in Torrevieja:

– Register your short-term holiday rental online or apply in the local office districts 

– Requires all tourist accommodation establishments to be managed under the principle of exploitation unit (by a single-owner company with proven ownership & other legal titles to operate) 

– Subscribe to civil liability insurance to cover damages & other loss 

– Required to have a municipal compatibility report in order to use your home as a tourist accommodation

8. Denia Rules & Regulations

Denia is a delightful cosmopolitan town located along the Mediterranean coastline, where the sun shines almost all year. Here are some of the Airbnb rules in Denia:

–  Register your short-term holiday rental in the Tourism Registry of the Valencian Community (present a declaration for tourist use)

– Required to attain a Certificate of Urban Compatibility 

Occupancy license or certificate of property occupancy

9. Las Palmas Rules & Regulations

Las Palmas is Canaries’ largest city with a number of world-class attractions. Here are some of the Airbnb rules in Las Palmas:

Strictly prohibits shared rentals (different people who have signed different contracts cannot live together in the same vacation rental) 

Certificate of Occupancy that certifies that the home has minimum conditions of structural integrity & health 

Register your holiday home in the Canary Islands’ local district 

– Attain accreditation of registration in the IGIC & submit a responsible declaration for the intent of str (tourist accommodation)

10. Benalmadena Rules & Regulations

Benalmadena is one of the most popular holiday resorts on the Costa del Sol of Spain with a variety of tourist attractions. Here are some of the Airbnb rules in Benalmadena:

– Submit a Responsible Declaration for the intent of STR (tourist accommodation) 

– Required to have an Occupancy License to operate 

Register your short-term holiday rental online or apply in the local office districts 

– Must obtain a VFT number (legal registration) to confirm legal operation of short-term business

11. Alicante Rules & Regulations

Alicante is known for its numerous parks, a cute historical center with narrow streets, colored houses, and a lively nightlife scene. Here are some of the Airbnb rules in Alicante:

–  Register your short-term holiday rental in the Tourism Registry of the Valencian Community (present a declaration for tourist use) 

– Required to attain a Certificate of Urban Compatibility 

Occupancy license or certificate of property occupancy

12. Benidorm Rules & Regulations

Benidorm is a bustling beach town in Spain’s seaside haven of Costa Blanca. Here are some of the Airbnb rules in Benidorm:

–  Register your short-term holiday rental in the Tourism Registry of the Valencian Community (present a declaration for tourist use)

– Required to attain a Certificate of Urban Compatibility 

Occupancy license or certificate of property occupancy

how much can you make on airbnb

Purchasing an Investment Property in Spain

You can purchase an investment property in Spain by considering the different kinds of mortgages, upfront and ongoing costs, and other expenses associated with your preferred property.

EXPENSES | FEES NEW HOUSING SECOND-HAND HOUSING
Notary Fees €750 €750
Registration Fees €365 €365
Management Fees €300 €300
VAT + IAJD €17,250 (not applicable)
ITP (not applicable) €15,000
TOTAL €18,675 €16,425

Airbnb Rental Arbitrage in Spain

If you prefer to rent a property instead of owning one, then you can definitely do so through Airbnb rental arbitrage in Spain! You can expect to spend around €3,000 to €5,000. This cost consists of everything including the deposit, furnishing, amenities, legal paperwork, and LLC Incorporation. Learn everything you need to know through the ultimate rental arbitrage guide & start earning profit anywhere in Spain!

How to Find a Profitable Area in Spain

Location analysis must be one of your top priorities when deciding on a rental location in order to increase profitability during such volatile times, especially while the pandemic continues to impact the rental market. 

The best way to find a profitable area in Spain is by looking at an accurate Airbnb Market Dashboard & start comparing the profit of your competitors in your preferred location.

airbnb business in spain

Essential Airbnb Data in Spain

Spain’s major cities have been recognized from all over the world for perfection & their primary impact on tourism & economic standing. This includes the cities of Madrid, Las Palmas, and Barcelona – which all have the highest occupancy rates in digital nomad cities.

5 Excellent Airbnb Hosting Tips in Spain

1. Learn About Startup Costs

To begin with, it’s important to have an overview of Airbnb Startup Costs in order to prepare for the total expenses. Here’s a summary of the overall expenses per amenities:

List of Amenities Expenses
Room Amenities (two-bedroom) €3,977 per unit
Hardware Essentials €1,541
Cameras €2,485 per property
Kitchen Utensils €994
Decorations €99,44 per room
Fresh Paint (with labor and supplies) €1,988 per unit
Misc. Supplies €497 per unit

Relatively, it’s important to learn about the process of Airbnb investment, legal considerations, and key metrics for successful Airbnb hosting. With the help of the Airbnb Investment Guide, you’ll be able to get started and have professional knowledge in starting an Airbnb business in Spain!

However, if you are on a limited budget, you can still fulfill your dreams of starting an Airbnb! Start by choosing the right location, creating a business plan, and being able to properly start an Airbnb with a minimal budget.

2. Utilize the Best Hosting Tools

Whether you are a newbie or a pro in the Airbnb industry, there’s no denying that Airbnb hosting tools play a huge role in the overall success of your business. Not only will these tools help you save time and energy, but they will also help you get better reviews and earn more revenue. This includes property management tools, message automation, and market research software.

Managing Airbnb listings alone can already be a difficult task especially if you don’t have much time to focus your attention on the properties that you’re handling all at the same time. 

Utilizing short-term rental data analytics such as Airbtics, Mashvisor, AirDNA, and AllTheRooms can help you present & analyze data to create a strategic analysis for your Airbnb market research. You can also look at the  5 Best AirDNA alternatives in 2022 with vast free & paid options. 

3. Essential Airbnb Amenities

Once you have set your eyes on a particular property in Spain and successfully went through all the necessary documentation, don’t forget to add the essential Airbnb Amenities

Although it’s not necessary to add High-End Airbnb Amenities, you’d be surprised to know that there are affordable ones with great quality on the market. Relatively, there are also suitable amenities for vacation rental homes including a sweet welcome package & a local guidebook. 

Finally, if you’re simply forgetful and need a summarized checklist of Airbnb Amenities, feel free to download it in PDF!

airbnb business in spain
4. Effective Strategies for Promoting Airbnb Listings

It’s a given fact that constantly improving your listings will help to maximize your Airbnb revenue & get the highest occupancy rates. The best way to showcase the details of your Airbnb listing is through the power of advertisement! Some of the effective strategies for Promoting Airbnb Listings are:

– Prioritize Booking Channels

– Promote Airbnb listings by ranking on SEO (Search Engine Optimization)

– Learn how to take the Best Airbnb Photos

– Coordinate with your Local Tourism Council

– Ask your Recent Guests to Leave Feedback

5. Know the Right Words to Say with Airbnb Message Templates

It could be a struggle to know what to say when your property is fully-booked with guests!  Earn their trust & win your guest’s hearts by sending out the perfect Airbnb Welcome Letter Templates

welcome letter sample

Most importantly, once your listing is up on the Airbnb platform, hosts will be evaluated according to their response rates. This means that the faster you respond to inquiries or concerns, the better!

By looking at Airbnb Message Templates for Hosts, you can easily prepare the saved replies according to their inquiry, and will automatically be sent to your guests.

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