HOLIDAY RENTALS
Legal Rep Service - Holiday Rentals
Invest and purchase a property for holiday use involves a series of fiscal and administrative obligations that foreigners are not aware of
A growing sector
Tenerife and the Canary Islands have proliferated a multitude of tourist options to accommodate tourists and guests.
Traditionally, the hotel sector continues to be the most classic option for visiting the Islands, but other accommodation options of tourist interest have also appeared, even for investors or foreigners who expect a higher profitability than those expected in long term rentals. While long term rentals range from 5% to 6.5% profitability, holiday rental margins tend to range from 6.5% to 9% profitability, depending on location and condition of the property.
Legal obligations
However, the investment or purchase of property for holiday use involves a series of fiscal and administrative obligations that foreigners are not aware of.
For example, there are the following obligations:
– To be registered (and pay) for the corresponding General Indirect Tax.
– Comply with a series of tourist standards and qualities in your property.
– To have a license or authorisation to carry out the holiday rental activity.
– Comply with the obligations to report guests to the Police.
– Have complaint forms for guests
– Telephone available to guests 24 hours a day
– Comply with the town planning regulations of the Town Hall
All these issues must be taken into account and assessed by a lawyer specialised in real estate law in order to avoid tourist inspections and sanctions at the point of purchase of the property.