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

Starting a Short-Term Rental Business in Bilbao

To legally operate a short-term rental (less than 31 days) in Bilbao, you must:

• Register your property with the Basque Country's Tourism Registry and obtain a permit. This involves submitting a declaration of tourist use.
• Ensure your property is located in an area zoned for short-term rentals. In some residential zones like Casco Viejo and Bilbao la Vieja, only one tourist accommodation per building is allowed.
• Meet specific property standards for safety, habitability, and guest amenities as outlined in Decreto 101/2018.
• Rent the entire property, not individual rooms, unless the owner resides on-site.
• Provide a written rental contract to guests for stays under 31 days.
• Collect and remit relevant tourist taxes to the provincial council.

As of 2022, there were 1,072 Airbnb listings in Bilbao, with 67% entire homes earning an average of €37,552 per year. However, the city has stopped issuing new permits in some central areas to limit the growth of short-term rentals.

Short-Term Rental Licensing Requirement in Bilbao

To legally launch and operate a short-term rental in Bilbao, property owners must obtain a tourist license from the Basque Tourism Registry. This involves submitting a declaration of tourist use and meeting specific requirements.

Key steps in the licensing process include:

1. Ensure the property is located in an area zoned for short-term rentals. In some residential zones like Casco Viejo and Bilbao la Vieja, only one tourist accommodation per building is allowed.
2. Obtain a certificate of occupancy or first occupancy license confirming the property's legal status and suitability for habitation.
3. Meet habitability and safety standards, including proper ventilation, lighting, fire protection, and accessibility.
4. Provide a floor plan showing room layout, sizes, and amenities.
5. Secure a building technical inspection report less than 10 years old.
6. Submit a completed application form, proof of ownership, and pay the required fee.

If the property is located in a zone where short-term rentals require a change of use permit, additional documentation demonstrating compliance with zoning regulations may be necessary.

Licenses are valid for 5 years and must be renewed to continue operating. The property is subject to periodic inspections to ensure ongoing compliance with regulations.

Failure to obtain proper licensing can result in fines up to €30,000. In one case, a Bilbao Airbnb host faced daily penalties for renting without a permit after neighbors complained about noise disturbances.

It's crucial for hosts to carefully review all requirements and gather necessary documentation before applying for a license. Working with a local property manager or attorney can help you navigate the process and avoid costly mistakes.

With the city imposing limits on new licenses in popular areas to curb the impact of tourism, securing a permit is becoming increasingly challenging. However, for those who obtain the proper approvals, short-term rentals can be a lucrative business in Bilbao's thriving market.

Required Documents for Bilbao Short-Term Rentals

To operate a short-term rental in Bilbao, hosts must have the following documents available:

1. Copy of the tourist rental permit (Viviendas de Uso Turístico or VUT) from the Basque Tourism Registry. This permit includes the property's unique registration number which must be displayed on all listings.
2. Proof of property ownership, such as a title deed or property registry extract. If the host is not the owner, written authorization from the owner is required.
3. Certificate of occupancy (Cédula de Habitabilidad) or first occupancy license confirming the property's legal status and suitability for habitation.
4. Floor plan showing room layout, sizes, and amenities. This is submitted with the permit application to demonstrate compliance with size and facility requirements.
5. Building technical inspection report (Inspección Técnica de Edificios or ITE) less than 10 years old. This periodic inspection certifies the building's structural safety and habitability.
6. Complaint forms (Hojas de Reclamaciones) must be made available to guests in case they wish to file an official complaint.
7. Guest registration form to collect passport details of all adult guests. This information must be submitted to the police within 24 hours of check-in.
8. Written rental contract template for stays under 31 days. The contract must include details like guest names, dates, price, and house rules.
9. Emergency contact information and evacuation plan posted prominently in the property.
10. Receipt of payment of the tourist tax (Impuesto sobre Estancias Turísticas) collected from guests and remitted to the provincial council.

These documents may be requested by authorities during inspections. Failure to provide them can result in fines or permit revocation.

Hosts must also maintain detailed records of all bookings, income and expenses for at least 4 years. Digital copies are acceptable but must be readily available.

It's recommended to engage a professional property manager or local attorney to ensure all required documents are properly prepared and maintained. With strict enforcement of short-term rental rules in Bilbao, compliance is critical to avoiding costly penalties and operating a successful rental business.

Bilbao Short-Term Rental Taxes

Short-term rental operators in Bilbao must collect and remit the following taxes:

1. VAT (IVA) of 10% on rental income, filed quarterly. As a self-employed individual earning income from short-term rentals, hosts are required to charge this tax on the rental price and pass it on to the tax authorities.
2. Personal income tax on net rental profit at the applicable marginal rate, which ranges from 19% to 49%, less deductible expenses, filed annually. Hosts can deduct certain costs like mortgage interest, property taxes, insurance, utilities, and depreciation to reduce their taxable rental income.
3. Basque Country tourist tax of €2 per person per night, up to a maximum of 3 nights, paid to the provincial council. This tax is charged separately to guests and then remitted by the host to the local authorities on a quarterly basis.

Detailed records of all rental income and expenses must be kept for tax purposes, typically for a minimum of 4 years. This includes dates of stays, guest details, booking platform fees, cleaning costs, repairs, and other relevant expenses.

Hosts earning over €6,000 annually from short-term rentals must also register as self-employed (autónomo) and make social security contributions. The monthly amount varies based on age and income but starts around €280.

Non-compliance with tax obligations can result in significant penalties and interest charges. In serious cases, it may even lead to criminal prosecution for tax fraud.

Some hosts use specialist short-term rental accounting software to automate income and expense tracking, generate tax reports, and streamline compliance. Others work with local tax advisors or property managers to ensure they are meeting all their fiscal responsibilities.

With average Airbnb revenue exceeding €37,000 per year for a 2-bedroom listing in Bilbao, proper tax management is essential to optimize profits and minimize legal risks. Failure to comply with tax rules is one of the quickest ways to jeopardize an otherwise successful short-term rental business.

By understanding and fulfilling their tax obligations, hosts can operate with confidence and realize the full financial potential of the Bilbao short-term rental market. Professional advice is highly recommended to navigate the complexities and stay current with any regulatory changes.

Spain Wide Short-Term Rental Rules

While specific short-term rental regulations can vary by region and city in Spain, there are some general rules that apply nationwide:

1. Short-term rentals are defined as stays of less than 2 months in duration. Longer stays are considered regular residential rentals.
2. Properties must be registered with the appropriate regional tourism authority, and a license or permit must be obtained before being rented for the short term. This typically involves submitting a declaration of tourist use.
3. Entire properties must be rented, not individual rooms, unless the owner resides on-site during the rental period.
4. Properties must meet certain habitability and safety standards, including proper ventilation, lighting, sanitation, and fire protection measures.
5. Guests must be provided with a written rental contract outlining the terms of the stay, price, and any house rules.
6. Owners must collect and remit any applicable tourist taxes to the local authorities, which can range from €0.50 to €4 per person per night depending on the region.
7. Detailed guest information, including passport details, must be recorded and submitted to the local police within 24 hours of check-in for all guests over age 16.
8. Anti-squatting measures like security deposits and proper guest screening are highly recommended, as evicting problem tenants can be a lengthy and costly process in Spain.
9. Owners must declare all rental income and pay the appropriate taxes, which can include VAT, income tax, and local surcharges.

It's important to note that many cities and regions have implemented additional restrictions on top of these baseline rules. For example, some limit the total number of licenses available, restrict short-term rentals to certain zones, or cap the number of days per year a property can be rented.

Fines for non-compliance can be steep, reaching up to €600,000 in some cases. Enforcement has increased in recent years as local authorities grapple with the explosive growth of short-term rentals and its impact on housing markets.

For owners looking to start a short-term rental business in Spain, carefully researching and complying with all applicable regulations is critical. Engaging a local property manager or attorney who specializes in this area can help you navigate the complex and evolving landscape.

While the national rules provide a framework, it's ultimately the regional and municipal regulations that will most impact day-to-day operations. Staying informed of any changes and maintaining open communication with local authorities is key to running a successful and compliant short-term rental in Spain.

Does Bilbao Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, Bilbao appears to be increasingly strict in enforcing short-term rental regulations compared to other Spanish cities.

Several hosts have reported surprise inspections, hefty fines, and permit revocations for failing to fully comply with requirements such as guest registration and safety standards. The city actively monitors platforms like Airbnb and has issued violation notices to unlicensed properties.

One Bilbao host shared on Reddit, "My neighbor complained about my Airbnb guests, and now I'm facing huge fines. Don't risk it, get the license!" Another noted, "The regulations are getting stricter every year. I'm glad I got my permit early before they stopped issuing them in my area."

While some hosts still attempt to skirt the rules, the potential consequences are severe. Fines can reach up to €30,000, and properties may be banned from hosting altogether.

Compared to cities like Madrid or Barcelona, Bilbao is considered less friendly to short-term rentals overall. The city has stopped issuing new permits in many central areas to curb the negative impacts on housing affordability and availability.

However, enforcement still primarily relies on neighbor complaints, so some non-compliant properties continue to operate under the radar. However, with growing pressure from residents and the local government, the risks of operating illegally are increasing.

In conclusion, while Bilbao may have been more lax in the past, the city is now strictly enforcing short-term rental rules. Attempting to host without proper licensing is inadvisable. The days of operating Airbnbs with impunity in Bilbao are over as the city cracks down to protect housing for local residents. Hosts are strongly advised to fully comply with all regulations to avoid costly penalties and business disruptions.

How to Start a Short-Term Rental Business in Bilbao

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

1. Determine if your property is eligible for short-term rentals. Check the zoning rules and any building-specific restrictions. In some areas like Casco Viejo, only one short-term rental is allowed per building.
2. Ensure your property meets all habitability and safety requirements, including proper ventilation, lighting, fire protection, and accessibility. Make any necessary renovations or repairs.
3. Obtain a certificate of occupancy (Cédula de Habitabilidad) or first occupancy license from the city council. This confirms the property is legally habitable.
4. Register your property with the Basque Tourism Registry and apply for a tourist rental permit (Viviendas de Uso Turístico or VUT). Submit the required documents, including proof of ownership, floor plan, and building inspection report.
5. Prepare your property for guests. Furnish and equip it to a high standard, considering amenities like Wi-Fi, kitchen supplies, and linens. Hire a professional photographer to take high-quality listing photos.
6. Create a house rules document outlining expectations for guest behavior, noise levels, smoking, pets, etc. Translate it into multiple languages if targeting international guests.
7. Set up a system for managing bookings, cleaning, and maintenance. Consider using a channel manager to synchronize calendars across multiple platforms like Airbnb and Booking.com.
8. Determine your pricing strategy based on local market rates, seasonality, and occupancy goals. Use dynamic pricing tools to automatically adjust rates based on demand.
9. Create listings on popular short-term rental platforms. Be sure to include your permit number, detailed descriptions, quality photos, and house rules.
10. Arrange for professional cleaning and restocking between guest stays. Hire a reliable cleaning service or manage it yourself if you live nearby.
11. Provide guests with a written rental contract to sign upon arrival. Collect and remit the tourist tax of €2 per person per night to the provincial council.
12. Register each guest's passport details with the police within 24 hours of check-in using the online platform. Maintain a record of all bookings and guest information.
13. Comply with all tax obligations, including declaring rental income and paying VAT, income tax, and social security contributions as required. Consider hiring a local accountant to assist.
14. Regularly inspect your property for any maintenance issues or damage. Address guest complaints promptly and professionally to maintain a high rating and avoid negative reviews.
15. Stay informed of any changes to local short-term rental regulations and adapt your business practices accordingly. Join a local host community or hire a property manager to help you stay compliant.

By following these steps and prioritizing regulatory compliance, you can build a successful and sustainable short-term rental business in Bilbao. While the process may seem daunting, the potential rewards are significant for hosts who are willing to invest the time and effort to do it right.

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

For the most up-to-date and accurate information about short-term rental regulations and zoning in Bilbao, it's best to contact the relevant local authorities directly. Here are the key departments and their contact details:

1. Bilbao City Council (Ayuntamiento de Bilbao) - Urban Planning Department

Address: Plaza Ernesto Erkoreka, 1, 48007 Bilbao, Bizkaia, Spain
Phone: +34 944 204 200
Email: bilbao@bilbao.eus
Website: https://www.bilbao.eus/

2. Basque Tourism Registry (Registro de Empresas Turísticas del País Vasco)

Address: Alameda de Urquijo, 36, 48011 Bilbao, Bizkaia, Spain
Phone: +34 945 019 900
Email: turismo@euskadi.eus
Website: https://turismo.euskadi.eus/

3. Bilbao Police Department (Policía Municipal de Bilbao)

Address: Calle Luis Briñas, 16, 48013 Bilbao, Bizkaia, Spain
Phone: +34 944 204 202
Email: policiamunicipal@bilbao.eus
Website: https://www.bilbao.eus/policia-municipal/

The Bilbao City Council's Urban Planning Department can provide information on zoning regulations, permitted uses, and any neighborhood-specific restrictions on short-term rentals. They can also guide you through the process of obtaining a certificate of occupancy or first occupancy license.

The Basque Tourism Registry is responsible for issuing tourist rental permits (VUTs) and enforcing regional short-term rental regulations. They can assist with the registration process and answer questions about habitability and safety requirements.

The Bilbao Police Department handles the registration of guest passport details and may conduct inspections to ensure compliance with short-term rental rules. They can provide information on the guest registration process and any local security requirements.

In addition to these official sources, consider joining a local host association or engaging a property manager who specializes in short-term rentals. They can provide valuable insights into the local market and help you navigate the regulatory landscape.

By working closely with local authorities and experienced professionals, you can ensure your short-term rental business in Bilbao operates smoothly and complies with all applicable regulations.

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

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

Hosts acknowledge that Bilbao requires them to obtain a tourist license from the Basque Tourism Registry and display the registration number on all listings. This involves submitting a declaration of tourist use and meeting specific property standards.

Some hosts feel the licensing process is bureaucratic and time-consuming, requiring documents like a certificate of occupancy, floor plans, and a building inspection report. Using a lawyer or property manager to navigate the paperwork is recommended.

Hosts must collect and remit a tourist tax of €2 per person per night to the provincial council. This is seen as an additional administrative burden and expense that cuts into profits.

There are concerns about the city's crackdown on unlicensed rentals and the difficulty of obtaining new licenses in popular central areas like Casco Viejo. This limits opportunities for new hosts looking to enter the market.

Hosts worry about the risk of "okupas" (squatters) taking advantage of tenant-friendly laws to remain in properties indefinitely. Some reports avoid notifying authorities about problem guests to prevent drawing attention to unlicensed rentals.

The income potential of short-term rentals in Bilbao is widely recognized, with hosts reporting average annual revenue over €37,000 for entire home listings. This motivates many to comply with regulations despite the challenges.

Some hosts believe that while Bilbao's rules are strict on paper, enforcement is inconsistent compared to cities like Barcelona or Madrid. However, they caution that operating without a license is increasingly risky as the city ramps up inspections and fines.

Overall, Bilbao Airbnb hosts seem to accept the need for regulation while expressing frustration with the complexity and cost of compliance. Many continue to operate successfully within the legal framework, but there are calls for streamlining processes and supporting responsible hosting. As the city tries to balance tourism growth and housing needs, hosts are advised to stay informed and adapt to evolving rules to minimize risk.

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.