Holiday Let Licences in Spain — What You Need

A VFT (Vivienda con Fines Turisticos) is the official category for properties rented to tourists in Andalusia for stays of up to two months. If you rent your property for any period shorter than two months, you need a VFT licence. Long-term rentals (two months or more) fall under different legislation — the Ley de Arrendamientos Urbanos (LAU) — and do not require a tourist licence.

The VFT regime is governed by Decreto 28/2016 of the Junta de Andalucia, which was updated in 2023-2024 to tighten requirements. The key points:

• You can rent the entire property (complete VFT) or individual rooms (room-by-room VFT). The requirements differ slightly.
• The property must be in a zone where tourist use is permitted under the local town plan (PGOU). In practice, most residential properties on the Costa del Sol qualify, but check with your local town hall.
• The property must meet minimum habitability and safety standards (see below).
• You must register the property with the Registro de Turismo de Andalucia (Andalusian Tourism Registry) before advertising or accepting guests.

There is no fee to register, but you must submit a declaracion responsable (responsible declaration) confirming your property meets all requirements. The registry issues your VFT number, which must appear on all advertising, listings, and guest communications.

Your property must meet the following requirements to qualify for VFT registration in Andalusia:

Physical requirements:

• First occupancy licence (licencia de primera ocupacion) or equivalent habitability certificate.
• Air conditioning — heating and cooling in all living areas and bedrooms. This is mandatory, not optional.
• Hot water — a functioning water heater in the kitchen and bathroom.
• Minimum furniture: Each bedroom must have a bed, bedside table, and storage (wardrobe or drawers). Living areas require seating and a table.
• Kitchen equipment: Fridge, cooker or hob, and basic cooking utensils.
• First aid kit in the property.
• Fire extinguisher — readily accessible to guests.
• Emergency information: Displayed instructions in at least Spanish and English showing the nearest hospital, emergency phone numbers (112), and evacuation routes.
• Cleaning: The property must be cleaned before each new guest arrival. Bed linen and towels must be provided and changed at least weekly (or between guests).

Administrative requirements:

• Guest registration: You must register all guests with the Policia Nacional within 24 hours of arrival (the SES.Hospedajes online system). Failure to register guests is a separate offence.
• Complaints book: A hoja de reclamaciones (official complaints book) must be available to guests on request. You can purchase these from official suppliers.
• Liability insurance: Mandatory civil liability insurance covering guest injuries and property damage. Typical cost: EUR150-EUR300 per year.
• Maximum occupancy: Displayed in the property and not exceeded. Occupancy limits are based on the property's habitability certificate.

The application process is relatively straightforward, but it requires careful preparation:

Step 1 — Gather your documents:

• Copy of the property's escritura (deed) or nota simple proving ownership.
• First occupancy licence or habitability certificate.
• Proof of liability insurance for tourist accommodation.
• Your NIE and passport.
• Floor plan of the property showing room dimensions.
• Photographs of each room (some municipalities request these).

Step 2 — Submit the declaracion responsable:

This is done online through the Junta de Andalucia's Ventanilla Electronica (electronic window) or in person at the Delegacion Territorial de Turismo. The declaration confirms that your property meets all VFT requirements. You are legally responsible for the accuracy of this declaration.

Step 3 — Receive your VFT number:

Once processed (typically 1-4 weeks), you receive a registration number in the format VFT/MA/XXXXX (for Malaga province). This number must appear on all advertising, listings, and in the property itself.

Step 4 — Register on platforms:

Airbnb, Booking.com, Vrbo, and other platforms require your VFT number before your listing goes live. Spanish law now requires platforms to verify licence numbers and share data with tax authorities. Unlicensed listings are increasingly being identified and removed.

Step 5 — Register for guest reporting:

Set up your account on the SES.Hospedajes system (administered by the Policia Nacional) for mandatory guest identity reporting. This is separate from the tourism registration.

Even with a VFT licence, your community of owners (comunidad de propietarios) may have the power to restrict or ban holiday letting in your building. This is one of the most overlooked issues for UK buyers planning to let their property.

The Ley de Propiedad Horizontal (Horizontal Property Law) was amended in 2019 to give communities greater power over tourist accommodation. The key provisions:

• A community can ban or restrict tourist letting if the motion is passed by a three-fifths majority (3/5 of owners and 3/5 of participation quotas) at a general meeting.
• Communities can also impose a surcharge of up to 20% on community fees for owners who let their property to tourists, to reflect the increased wear on communal facilities.
• Existing community statutes (estatutos) may already contain restrictions on commercial or tourist use. Always check the statutes before buying if you intend to let.

Practical implications for buyers:

• Before purchasing, ask your lawyer to review the community statutes and minutes from the last three years of general meetings to check for any restrictions or proposed restrictions.
• If the community currently permits holiday letting, understand that this could change in the future if enough owners vote to restrict it.
• In practice, communities in tourist-heavy areas (Marbella beachfront, Benalmadena, Fuengirola) often have a majority of owners who let their properties and are unlikely to vote for restrictions. Quiet residential communities are more likely to introduce bans.

Buying a villa or townhouse with no community removes this risk entirely, but villas typically have higher running costs and lower occupancy rates than apartments in prime tourist locations.

Rental income from your Spanish property is taxable in Spain regardless of your tax residence. As a UK non-resident, your obligations are:

Spanish tax on rental income:

• Tax rate: 24% on gross rental income for UK (non-EU/EEA) citizens. EU/EEA residents can deduct expenses, but UK residents cannot — this is a significant post-Brexit disadvantage.
• Filing: Modelo 210 must be filed quarterly when you have rental income. Each quarter covers the previous three months' rental receipts.
• What is taxable: The gross rent received, including cleaning fees charged to guests. You cannot deduct mortgage interest, repairs, management fees, or other expenses (unlike EU residents).
• Imputed income: For periods when the property is not rented, you are taxed on imputed income — 24% of 1.1% (or 2% for older catastral values) of the valor catastral. This applies even when the property sits empty.

UK tax obligations:

• Declare Spanish rental income on your UK self-assessment tax return.
• Claim credit for Spanish tax paid under the double taxation agreement to avoid being taxed twice.
• You can deduct allowable expenses (mortgage interest, repairs, management fees, insurance) on your UK return even though you cannot deduct them in Spain.

IVA (VAT): Holiday lettings to tourists are generally exempt from IVA provided you offer only accommodation (not hotel-like services such as daily cleaning, meals, or reception). If you do offer ancillary services, you may be required to register for IVA and charge 10%.

Use a Spanish gestor fiscal (tax advisor) to handle your Modelo 210 filings. Typical cost: EUR150-EUR300 per year. See our cost calculator for a full breakdown of ongoing ownership costs.

The Junta de Andalucia takes unlicensed tourist letting seriously, and enforcement has increased significantly since 2023. The penalties are:

Infraction	Category	Fine Range
Operating without a VFT licence	Serious	EUR2,001 - EUR18,000
Repeat offence or refusal to cease	Very serious	EUR18,001 - EUR150,000
Failure to display VFT number in advertising	Minor	EUR100 - EUR2,000
Failure to register guests with police	Serious	EUR601 - EUR30,000
Exceeding maximum occupancy	Serious	EUR2,001 - EUR18,000
Not having complaints book available	Minor	EUR100 - EUR2,000
Not having mandatory liability insurance	Serious	EUR2,001 - EUR18,000

Beyond fines, unlicensed properties can be ordered to cease activity immediately, and repeat offenders can be banned from registering for tourist letting for a period of up to three years.

Enforcement comes from several directions: the Junta de Andalucia's tourism inspectors, local police, neighbour complaints (particularly from communities of owners), and — increasingly — data sharing from platforms like Airbnb and Booking.com, who are legally required to report listing data to Spanish tax authorities.

The message is clear: operating without a licence is not worth the risk. The application process is free and relatively straightforward — there is no good reason not to comply.