Alicante Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Alicante

To legally rent out your property short-term (less than 2 months) to tourists in Alicante, you must:

• Register your property with the Valencian Tourism Registry and obtain a Tourist Use House License. This involves submitting a declaration of tourist use.
• Obtain a Certificate of Urban Compatibility from the Alicante town hall.
• Have an occupancy license or certificate of property occupancy.
• Meet specific requirements for tourist properties, such as being properly equipped and having certain legally required amenities.
• Limit rentals to a maximum of 60 days per year in some areas like Ciutat Vella.
• Rent the entire property, not individual rooms, unless the owner resides in the property.
• Pay rental income tax at a rate of 24% for non-resident owners. Resident owners pay tax on net rental income.

One Airbnb host in Alicante advises becoming friends with neighbors, installing security cameras and alarms, and avoiding renting to families with kids to prevent "okupas" (squatters) from refusing to leave.

Fines are imposed for renting illegally without a license. Specific regulations can vary by municipality. For example, in the city of Valencia, short-term rentals are further restricted to only ground floor and first floor apartments not located above or on the same landing as a residence.

As of July 2018, a total of 5,695 properties were listed on Airbnb in Alicante, with 67% of entire homes earning up to €1,630 per month. However, obtaining a new license in popular areas is becoming increasingly difficult as many cities like Barcelona have stopped issuing them to limit over-tourism.

Short-Term Rental Licensing Requirement in Alicante

To legally rent out your property short-term to tourists in Alicante, you must obtain a Tourist Use House License (Licencia de Vivienda de Uso Turístico or LVUT) from the Valencian Tourism Registry. This involves submitting a declaration of responsibility for tourist-use housing.

In addition to the LVUT, as of July 2018, the Alicante city council requires a Certificate of Urban Compatibility (Certificado de Compatibilidad Urbanística) confirming the property is eligible for tourist rental use. This certificate must be obtained before applying for the LVUT.

Other key requirements include:

1. The entire property must be rented, not individual rooms unless the owner resides in the property
2. The property must have an occupancy license (licencia de ocupación) or second occupancy license (licencia de segunda ocupación)
3. The property must meet habitability standards and be properly equipped with mandatory amenities for tourist rentals
4. Rentals may be limited to 60 days per year in some areas like Ciutat Vella

Non-resident owners must also pay rental income tax at a flat rate of 24%. Resident owners pay tax on net rental income at their marginal rate.

Fines of up to €600,000 can be imposed for renting without the proper licenses. Enforcement has increased as the city cracks down on unlicensed tourist rentals that are not complying with the regulations.

While the licensing process requires upfront work and cost, it allows owners to legally rent short-term and list on platforms like Airbnb, which require a license number. There are currently 5,695 licensed Airbnb listings in Alicante, with entire homes earning an average of €1,630 per month.

However, with Alicante no longer issuing new licenses in many areas to curb over-tourism, obtaining a tourist rental license is becoming increasingly difficult. Existing licenses are now a valuable commodity for investors looking to enter the short-term rental market.

Required Documents for Alicante Short-Term Rentals

To legally operate a short-term rental in Alicante, you will need to gather and submit several key documents as part of the licensing process. These include:

1. Passport or government-issued ID of the property owner
2. Proof of ownership, such as a title deed or property registry extract
3. Catastro reference number for the property (referencia catastral)
4. First Occupancy License (Licencia de Primera Ocupación) or Second Occupancy License (Cédula de Habitabilidad)
5. Certificate of Urban Compatibility from the town hall stating the property is suitable for tourist rentals
6. Signed application form (Declaración Responsable) with details like number of bedrooms and maximum occupancy
7. Receipt of paid fees, which vary by municipality but average around €280 in Alicante
8. Complaints book (Hoja de Reclamación) that must be made available to guests

In some cases, additional documents like an energy efficiency certificate, architectural plans, or community of owners approval may be required depending on the specifics of your property.

It's important to confirm the exact list of required documents with your local town hall, as they can vary. Many owners choose to have a lawyer or property manager assist them in preparing the paperwork to ensure everything is in order.

Once your tourist rental license is approved, you will receive a registration number that must be displayed in all advertising, and an official plaque to affix near the property entrance. You are then required to submit basic details of all guests over age 16 to the Guardia Civil within 24 hours of check-in, including name, passport number, nationality and dates of stay.

Failure to comply with the registration and documentation requirements can result in substantial fines, so it's crucial to follow the process carefully. With the proper licensing in place, you can confidently welcome guests and enjoy the benefits of running a successful short-term rental business in Alicante.

Alicante Short-Term Rental Taxes

When renting out your property short-term in Alicante, it's important to understand the tax obligations. The main taxes that apply to short-term rentals are:

1. Personal Income Tax (IRPF): Rental income is subject to personal income tax for both resident and non-resident owners. The tax rate varies:
   -Residents: Progressive tax scale ranging from 19% to 45% depending on total income and region of residence
   -Non-residents: Fixed rate of 24%, or 19% for EU/EEA residents
2. Value Added Tax (VAT): Short-term rentals are generally exempt from VAT, unless you provide hotel-like services such as catering, daily cleaning, and laundry. In that case, a reduced VAT rate of 10% applies.
3. Wealth Tax: If the total value of your assets exceeds certain thresholds, you may be subject to wealth tax on the net value of your rental property.
4. Local Taxes: Some municipalities charge additional local taxes on tourist rentals, such as a nightly tourist tax per guest. Check with your local town hall for specific requirements.

As a non-resident owner, you must file a quarterly tax return and pay 24% tax on gross rental income using Form 210. Resident owners include rental income on their annual tax return, with the option to deduct eligible expenses like mortgage interest, insurance, and utility costs to reduce taxable income.

It's crucial to keep detailed records of all rental income and expenses, as well as dates the property was rented. Using a reputable rental management company can help ensure proper tax compliance. Fines for undeclared rental income can be steep.

With the increasing regulations on short-term rentals in popular areas like Alicante, it's more important than ever for owners to stay informed of their tax obligations. Consulting a local tax advisor is recommended to navigate the complexities and maximize deductions. By properly reporting and paying taxes on your Alicante rental, you can enjoy the benefits of this lucrative market while staying on the right side of the law.

Alicante Wide Short-Term Rental Rules

In addition to the specific requirements for obtaining a tourist rental license in Alicante, there are some general rules that apply throughout the region:

1. Short-term rentals are defined as stays of less than 2 months by the same tenant. Longer stays are considered regular residential rentals.
2. Entire properties must be rented, not individual rooms, unless the owner resides in the property.
3. Properties must meet certain habitability standards, including having air conditioning, heating, and other mandatory amenities for tourist rentals.
4. Owners must have an occupancy license (licencia de ocupación) or certificate of second occupancy (cédula de habitabilidad) for the property.
5. Rentals may be restricted to a maximum number of days per year in some high-demand areas. For example, in Ciutat Vella, rentals are limited to 60 days annually.
6. Owners must provide a complaints book (hoja de reclamación) for guests.
7. Guest registration information, including name, contact details, passport number, and dates of stay, must be submitted to the Guardia Civil within 24 hours of check-in for all guests over age 16.
8. Non-resident owners must pay rental income tax at a flat rate of 24%, while resident owners pay based on their marginal tax rate after deducting expenses. Taxes are due quarterly.
9. Fines of up to €600,000 can be imposed for renting without the proper licenses or failing to comply with regulations.

It's important for owners to carefully review all requirements with local authorities, as regulations can vary by municipality. Alicante has been cracking down on unlicensed rentals in an effort to control the growth of tourist apartments.

While short-term rentals can provide a good return in popular destinations like Alicante, the licensing process requires upfront work and cost. With the city no longer issuing new licenses in many areas to curb over-tourism, obtaining a permit is becoming increasingly difficult. Existing licenses are now a valuable commodity.

Owners need to weigh the potential income against the expenses and obligations of running a tourist rental. For those who proceed, ensuring full compliance with all regulations is critical to avoid fines and successfully operate a short-term rental business in Alicante.

Does Alicante Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, Alicante appears to be relatively lax in enforcing short-term rental regulations compared to other major Spanish cities like Barcelona. Many Airbnb hosts report operating in Alicante without major issues, despite not always fully complying with licensing requirements.

One Alicante Airbnb host advised that "some property owners don't notify police in case of okupas (squatters) because that allows them to hire a company to deal with it through harassment, threats, surveillance/repossession when they leave." This suggests a certain level of tolerance for unlicensed rentals.

However, Alicante has stopped issuing new tourist rental licenses in many popular areas to limit over-tourism. Existing licenses are now highly valued by investors looking to enter the short-term rental market legally.

Overall, while Alicante technically requires licenses and enforces some restrictions like entire property rentals only, in practice, many hosts seem to operate without major interference. The city is more Airbnb-friendly than places like Barcelona, which have cracked down hard on unlicensed rentals.

However, enforcement may increase as Alicante, like other Spanish destinations, tries to balance the economic benefits of tourism against the disruption to local housing markets. Hosts should not assume they can operate under the radar long-term without consequences.

The prudent approach is to carefully review all requirements, obtain proper licensing, and comply with evolving regulations. Using a local property manager to handle rentals and screening is recommended for foreign owners. Short-term rentals can be profitable in Alicante, but the days of lax oversight appear numbered as cities respond to the explosive growth of Airbnb.

How to Start a Short-Term Rental Business in Alicante

To legally start a short-term rental business in Alicante, follow these steps:

1. Ensure your property is located in an area zoned for short-term rentals and meets all habitability requirements, such as proper ventilation, furnishings, and safety features.
2. Obtain a Certificate of Urban Compatibility (Certificado de Compatibilidad Urbanística) from the Alicante town hall, confirming your property is eligible for tourist rental use.
3. Register your property with the Valencian Tourism Registry (Registro de Empresas, Establecimientos y Profesiones Turísticas) by submitting a declaration of responsibility for tourist use housing (Declaración Responsable sobre Viviendas de Uso Turístico).
4. Provide required documentation, including proof of ownership, occupancy license, liability insurance, identification, and paid fees. Use of a legal representative is recommended to ensure all paperwork is properly filed.
5. Once approved, you will receive a registration number that must be displayed in all advertising. Place the official tourist rental plaque near your property entrance.
6. Prepare your property for guests by fully furnishing and equipping it to meet classification requirements. Consider hiring a property manager to handle day-to-day operations.
7. List your property on platforms like Airbnb and Vrbo, making sure to include your registration number. Set competitive rates based on seasonality and local demand.
8. Comply with all tax obligations, including registering for and submitting applicable rental income taxes quarterly. Non-resident owners pay a flat 24% rate.
9. Maintain detailed records of all bookings and submit basic guest details to the Guardia Civil within 24 hours of check-in.
10. Stay informed of evolving short-term rental regulations at the municipal and regional level to ensure ongoing compliance. Fines for violations can be steep.

With proper planning and adherence to local laws, operating a short-term rental business in Alicante can be a profitable venture. But it's important to understand the time and cost involved in obtaining and maintaining a tourist license in this increasingly regulated market.

Who to Contact in Alicante about Short-Term Rental Regulations and Zoning?

For the most up-to-date and accurate information about short-term rental regulations and zoning in Alicante, it's best to contact the local authorities directly. Here are the key offices to reach out to:

1. Alicante City Council (Ayuntamiento de Alicante)

Address: Plaza del Ayuntamiento, 1, 03002 Alicante, Spain
Phone: +34 965 14 91 00
Email: informacion@alicante.es

2. Alicante Tourism Office (Oficina de Turismo de Alicante)

Address: Rambla Méndez Núñez, 41, 03002 Alicante, Spain
Phone: +34 965 200 000
Email: turismo@alicanteturismo.com

3. Valencian Tourism Agency (Agència Valenciana del Turisme)

Address: C/ Castán Tobeñas, 77, Ciutat Administrativa 9 d'Octubre, Torre 2, 46018 Valencia, Spain
Phone: +34 961 209 800
Email: avt_tur@gva.es

4. Alicante College of Architects (Colegio Territorial de Arquitectos de Alicante)

Address: Plaza Gabriel Miró, 2, 03001 Alicante, Spain
Phone: +34 965 21 82 50
Email: secretaria@ctaa.net

The Alicante City Council and Tourism Office can provide general information about short-term rental regulations and zoning specific to the city. The Valencian Tourism Agency oversees tourism regulations for the entire Valencia region, including Alicante.

For technical questions related to property inspections, habitability certificates, and urban compatibility reports, the Alicante College of Architects is a good resource. They can guide you on the specific documents and procedures required to meet rental standards.

Before starting the licensing process, always double-check the latest requirements, as short-term rental regulations in Spain are subject to change. Contacting the relevant authorities and professionals will help ensure a smooth and successful licensing experience in Alicante.

What Do Airbnb Hosts in Alicante on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions from Airbnb hosts in Alicante on Reddit and Bigger Pockets, here are some key takeaways about their views on local short-term rental regulations:

Hosts acknowledge that Alicante requires them to obtain a tourist license and register their property with the Valencian Tourism Registry in order to legally rent short-term. This involves submitting a declaration of tourist use and meeting certain property standards.

Some hosts report that the licensing process can be bureaucratic and time-consuming, requiring documents like a certificate of occupancy, energy efficiency certificate, and more. Using a lawyer or property manager is recommended to navigate the paperwork.

Hosts must collect and pay rental income tax, which is a flat 24% rate for non-resident owners. This is seen as a significant expense. Resident owners pay tax on net rental income at their marginal rate.

There are concerns about the city of Alicante cracking down on unlicensed rentals and imposing steep fines up to €600,000. However, some hosts still operate without licenses, believing enforcement is lax compared to cities like Barcelona.

Hosts are worried about Alicante stopping the issuance of new tourist rental licenses in many areas to curb over-tourism, as it limits their ability to enter the short-term rental market legally. Existing licenses are becoming a valuable commodity.

The requirement to submit guest information, including passport details, to the Guardia Civil within 24 hours of check-in is seen as a hassle by some hosts. But they understand it is a legal obligation.

Rising restrictions on the number of rental days allowed per year in some zones and the rule that entire properties must be rented, not individual rooms, are also points of frustration for hosts looking to maximize occupancy and revenue.

Some hosts believe that despite the strict regulations on paper, Alicante is still relatively friendly to short-term rentals compared to other Spanish cities. The high tourist demand and importance of vacation rentals to the local economy make them optimistic.

Overall, while Airbnb hosts in Alicante acknowledge the legal obligations and costs of complying with local regulations, many still see a path to profitability in the market. However, they advise new hosts to do thorough research, obtain proper licensing, and prepare for the possibility of tighter rules in the future as the city tries to balance tourism growth with housing concerns.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.