They have stated that the system for registation should be in place by summer 2014 but we have no further details and until we do it is not possible to say how much work will be involved in registering a property. Each area are implementing slightly different guidelines and until Cadiz province announce theirs and give us instructions and guidelines to work to, any speculation is merely that – speculation. I have been told that some rental agents are already talking about increasing charges to their clients to cover the “additional work” but until we know how much work is required, in my view, it is wholly wrong to start upping costs to clients.

One good piece of news is that Rafael Rodrigues, the Minister for Tourism, has said that like the Energy Efficiency Certificates, there will be no registration fees in Andalucia. He further states , “the introduction of licenses for holiday homes in Andalucía is not about shielding the interests of the hotel industry, nor is it about seeking extra income through license fees. The regularization will benefit society as a whole, through tax revenues, job creation and the quality of the touristic offer and supply.

Many people have been worried by the threat of rentals being banned all together but Raphael Rodriguez has confirmed this is certainly not going to be the case and that the amount of income to the area from private rentals is well acknowledged by the authorities.

There was certainly a fair amount of lobbying by hotels against private rentals, but in an area where last year, three times more revenue was generated from private rental property than from hotel stays, the government has to be careful not to create a similar situation to that seen when they introduced the overseas assets disclosure requirements. Many overseas nationals merely moved their base back to their country of origin or in to Gibraltar, with Gibraltar financial advisors saying that they had never been so busy. What Andalucia does not want is for large quantities of property owners to decide to just stop renting as it is too complicated to comply with the new laws, thereby reducing a very lucrative tourism market.

The government have long been suspected of introducing this law to clamp down on illegal rentals, where owners rent out their property but do not declare their income to the authorities and the introduction of registration will make it much easier for the authorities to find properties being rented out. Once registered, a property will receive a registration number and this must be shown on all advertising material for that property. A quick browse through the local and international holiday rental websites and a property with no registration number will be easily identified. As yet, there has been no indication of fines for those who do not comply, but that will undoubtedly follow once the local legislation is announced.

Obligations for rental property owners already exist and the registration process is merely an extension of what is already in place. The law is clear that all resident and non resident foreign property owners are required to submit a tax return to the Hacienda on an annual basis. If you rent your property the income should also be shown on your return. Likewise, owners are being told that they need rental insurance with public liability cover and that their electric and gas appliances should be checked. This has been the case for some time. Public liability and rental cover insurance is automatically included on many insurance policies in Spain because so many people do rent. So, before you go buying new policies, check your old one as it may already be covered, but if you do need to add it, the cost should be minimal. Gas checks, including 5 year certification can be carried out by some of the gas bottle supply companies and we have had many of these checks done for our clients. The check includes a print out to show that the boiler is safe asregards carbon monoxide emissions.
Please also remember that to rent a property in Spain you now need an Energy Efficiency Certificate. You need the certificate not only to rent your property but also to advertise it for rent.

Regulation is not a bad thing. It will raise the quality of rental property on offer and remove from the market those not prepared to comply. The Townhalls may decide to go down the same route as that already in place for rustic properties. Having seen one of the forms it is nothing to worry about. It is merely a factual record of the facilities of the house. There are some limitations such as minimum required bedrooms sizes but that will prevent holiday makers having to sleep in a cupboard and being told it is a double bedroom, but again, we have to wait and see the actual forms before we will know for sure.

Whether owners will be required to register with an official rental agent is something that we, do not know at this time. It is likely that they will be required to give a 24 hour contact number for emergencies so the police, for instance can contact them. For those not living in Spain, an agent may be the answer.

We will be offering full services to any property owner who wishes to register when that time comes.