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

Starting a Short-Term Rental Business in Granada

Short-term rentals, such as those listed on Airbnb and VRBO, are subject to specific regulations in Granada and the Andalusia region of Spain. Hosts must register their property with the Andalusian Tourism Registry and obtain a registration number that must be displayed on all advertisements.

To register, property owners need to submit a declaración responsable (sworn declaration) to their local town hall or tourism office, along with supporting documentation like proof of ownership and a first occupation license. Properties must meet certain quality standards, including having air conditioning, WiFi, and a first aid kit.

Granada has taken steps to regulate the growth of vacation rentals in the historic city center. In 2019, the city council proposed limiting new holiday rental licenses in the Albaicín and Realejo neighborhoods to prevent "touristification" and preserve local residents' housing access. The regulations have not yet been finalized.

The Andalusian regional government also passed a decree in 2016 (Decreto 28/2016) establishing rules for short-term rentals. Under the decree, properties rented for more than 2 months a year must be licensed and meet certain standards. Owners can rent out a maximum of 6 bedrooms and must provide 24/7 phone assistance to guests.

Hosts who fail to comply with registration and quality requirements can face fines up to €150,000. Airbnb and other short-term rental booking platforms are required to remove unlicensed listings or face penalties. Since July 2018, Airbnb has not allowed unregistered properties to advertise on its platform in Andalusia.

Despite the regulations, Granada remains a popular destination for vacation rentals. As of 2023, there were over 2,100 active Airbnb listings in the city, with 67% of all homes and 19% private rooms. Hosts can earn an average of €1,944 per month for an entire 2-bedroom apartment.

However, the registration process and potential for new restrictions adds uncertainty for short-term rental operators. Some real estate investors on forums like BiggerPockets question if it's worth the hassle and recommend sticking to long-term rentals in the city. Others note that Granada's STR regulations are still more relaxed than cities like Barcelona and Palma de Mallorca that banned Airbnb in certain areas.

Overall, starting a short-term rental business in Granada requires carefully navigating the local and regional licensing rules. While the market remains strong, hosts should stay apprised of any new regulations that could impact their ability to operate vacation rentals in the city. Consulting with local property managers and officials is advised to ensure compliance with all requirements.

Short-Term Rental Licensing Requirement in Granada

In order to legally operate a short-term rental property in Granada, owners must obtain a license from the Andalusian Tourism Registry (Registro de Turismo de Andalucía). This requirement applies to any property rented out for tourist purposes for periods of less than two months at a time.

Property owners must submit a declaración responsable (sworn declaration) to their local town hall or tourism office to register. The declaration affirms that the property meets all the necessary requirements for tourist accommodations. Along with the declaration, owners must provide supporting documentation such as:

• Proof of ownership of the property
• The property's cadastral reference number
• A first occupation license (licencia de primera ocupación) or equivalent certificate of occupancy
• Detailed floor plans showing room dimensions and intended use of each space
• Proof of a valid insurance policy covering civil liability with coverage of at least €300,000

Properties must meet certain quality standards to be eligible for a license. These include having air conditioning, WiFi, a fully equipped kitchen, and a first aid kit. There are also minimum size requirements - the property must have a constructed area of at least 25m2 and provide at least 14m2 per guest.

Once the declaration and supporting documents are submitted, the tourism office has 15 days to register the property and provide the owner with their official registration number. This number must be displayed in all advertising of the property.

It's important to note that in the city of Granada, there is currently a moratorium on issuing new short-term rental licenses in certain historic neighborhoods like the Albaicín and Realejo. The city council implemented this freeze in 2019 to combat "touristification" and preserve housing access for local residents. Existing licensed properties can continue to operate.

Failure to properly register and obtain a license can result in fines ranging from €2,000 to €150,000. Since July 2018, booking platforms like Airbnb are required to remove any unregistered listings or face penalties themselves.

The licensing process adds some administrative hurdles for short-term rental operators in Granada. But it's a necessary step to legally take advantage of the city's booming tourism market. Hosts should carefully review the requirements, gather all necessary documentation, and consult with local officials to ensure they are in full compliance.

Required Documents for Granada Short-Term Rentals

Property owners must gather and submit several required documents to legally operate a short-term rental in Granada as part of the registration process. These documents ensure compliance with local regulations and provide necessary information to the authorities. Here are the key documents needed:

1. Proof of ownership: Owners must provide a copy of the property deed (escritura) or other legal document demonstrating their ownership of the property.
2. First Occupation License (Licencia de Primera Ocupación): This license certifies that the property meets all necessary safety and habitability standards. For older properties built before this license was introduced, a Certificate of Occupancy (Cédula de Habitabilidad) or equivalent may be accepted.
3. Passport or national identity card (DNI): Property owners must submit a copy of their valid government-issued identification.
4. Company documentation: If the property is owned by a company, relevant corporate documents such as the company deed (escritura de constitución) and tax identification number (NIF) are required.
5. Floor plan: A detailed floor plan showing the layout and dimensions of the property, including the intended use of each space, must be provided.
6. Cadastral reference: The property's unique cadastral reference number, which can be found on the property tax bill (IBI) or obtained from the cadastral office, is needed for registration.
7. Responsible Declaration (Declaración Responsable): Owners must sign a declaration stating that their property meets all the requirements for tourist accommodations set forth by the Andalusian Tourism Registry.
8. Community approval: If the property is part of a homeowners' association (comunidad de propietarios), written approval from the association permitting short-term rentals must be obtained.
9. Insurance policy: Hosts are required to have a valid insurance policy covering potential damages and liabilities arising from the rental activity.

In addition to these documents, property owners must ensure their rental meets the minimum quality standards outlined in the Andalusian tourism regulations, such as having air conditioning, Wi-Fi, and a first-aid kit. Once all the necessary documents are gathered, hosts can proceed with registering their property with the Andalusian Tourism Registry to obtain their official registration number.

It's important to note that document requirements may vary slightly depending on the specific circumstances of the property and owner. Consulting with local authorities or a legal professional specializing in tourism law can help ensure a smooth registration process and full compliance with Granada's short-term rental regulations.

Granada Short-Term Rental Taxes

Short-term rental hosts in Granada are subject to various taxes at the national, regional, and local levels. Understanding and complying with these tax obligations is crucial for operating a successful and legal Airbnb business.

At the national level, rental income from short-term stays is subject to Spain's personal income tax (IRPF). For tax residents of Spain, net rental income may be reduced by 60% if the property is used for living purposes. Non-resident individuals are taxed at a flat rate of 24% on gross rental income, with no deductions allowed.

Regionally, Andalusia has not implemented a specific tourist tax like those found in Catalonia or the Balearic Islands. However, there have been discussions about introducing such a tax in the future to support sustainable tourism initiatives and infrastructure. Hosts should stay informed of any potential changes to regional tax policies.

Locally, Granada City Council has not imposed any additional taxes on short-term rentals beyond the standard property taxes and fees. However, the city has taken steps to regulate the growth of vacation rentals, particularly in the historic Albaicín neighborhood. In 2019, the council proposed limiting new holiday rental licenses in certain areas to preserve housing access for local residents.

It's important to note that even without a specific tourist tax, hosts in Granada are still responsible for collecting and remitting the 10% VAT (IVA) on their rental income. This applies to rentals with additional hotel-style services like cleaning and laundry. For rentals without these services, the activity is exempt from VAT.

To ensure full tax compliance, Granada hosts should:

1. Register with the Andalusian Tourism Registry and obtain a registration number to display on all advertisements.
2. Declare all rental income on their annual Spanish income tax return (Modelo 100 for residents, Modelo 210 for non-residents).
3. Collect and remit 10% VAT if providing additional hotel-style services.
4. Keep detailed records of rental income and expenses to support any deductions claimed.
5. Consult with a local tax professional to ensure they are meeting all national, regional, and local tax obligations.

While Granada may not currently have a tourist tax like some other Spanish destinations, hosts still face a complex web of tax requirements. Careful record-keeping and professional guidance can help short-term rental operators navigate this landscape and avoid potential penalties. As the city and region continue to grapple with the impacts of tourism, hosts should stay attuned to any future changes in tax policies that could affect their bottom line.

Spain Wide Short-Term Rental Rules

While each autonomous community in Spain has its own specific regulations for short-term rentals, there are some general rules and considerations that apply nationwide.

One key aspect is the distinction between long-term and short-term rentals. In Spain, rentals are considered short-term or seasonal if the duration is less than 2 months. Rentals longer than 2 months fall under the Urban Leasing Act and have different requirements.

For short-term rentals, owners must typically register their property with the local tourism authority and obtain a license or registration number. This number must be displayed in all advertising, including on platforms like Airbnb. Failure to properly register can result in significant fines.

Owners are also required to report guest information to local police within 24 hours of check-in for security purposes. This includes guest names, passport numbers, and dates of stay. Some regions have online reporting systems to facilitate this process.

Short-term rental properties must meet certain habitability standards, such as having air conditioning, heating, and Wi-Fi. They may also be subject to periodic home inspections to ensure ongoing compliance with regulations.

Income from short-term rentals is subject to taxation in Spain. For non-resident owners, there is a flat tax rate of 24% on gross rental income. Resident owners pay tax on net profit at their marginal tax rate. Proper filing and payment of taxes is essential to avoid penalties.

In some areas with high tourist demand, like city centers and islands, there are additional restrictions on short-term rentals. These may include zoning limitations, permit caps, or even complete bans in certain neighborhoods to preserve housing for local residents.

It's important for hosts to carefully research the specific rules in their locality, as regulations can vary significantly from place to place. Consulting with a local attorney or property manager can help navigate the complex and evolving landscape of short-term rental laws in Spain.

Overall, while the specific requirements differ by region, Spain has taken steps nationwide to formalize the short-term rental industry and ensure proper oversight. By understanding and complying with these regulations, hosts can operate successful and legal rental businesses across the country.

Does Granada Strictly Enforce STR Rules?

Based on discussions in real estate forums and online communities, it appears that Granada enforces its short-term rental regulations more strictly than some other Spanish cities. The city has taken steps to regulate the growth of vacation rentals, particularly in the historic Albaicín neighborhood.

According to posts on BiggerPockets, Granada requires hosts to register their properties with the Andalusian Tourism Registry and obtain a registration number that must be displayed on all advertisements. Failure to properly register can result in significant fines. The city also conducts inspections to ensure compliance with quality standards like air conditioning, WiFi, and first aid kits.

Reddit users note that Granada has proposed limiting new holiday rental licenses in certain areas to combat "touristification" and preserve housing access for local residents. While the regulations have not yet been finalized, it suggests the city is taking a proactive approach to managing the impact of short-term rentals.

Compared to cities like Madrid and Barcelona, which have seen explosive growth in Airbnb listings, Granada appears to be less Airbnb-friendly overall. The registration process and potential for new restrictions adds uncertainty for short-term rental operators.

However, this doesn't mean there are no active Airbnb hosts in Granada. As of 2023, there were still over 2,100 active listings in the city according to data from AirDNA. 67% of these were entire homes, suggesting a significant number of dedicated vacation rentals.

The general consensus among BiggerPockets and Reddit users is that while some hosts may be flying under the radar, Granada's regulatory environment poses compliance risks. The city seems to be enforcing its rules more actively than other Spanish destinations. Hosts who fail to register or meet quality standards could face fines or other penalties.

How to Start a Short-Term Rental Business in Granada

Starting a short-term rental business in Granada requires careful planning and compliance with local regulations. Here are the key steps to get started:

1. Familiarize yourself with Granada's short-term rental regulations. The city has proposed limiting new holiday rental licenses in certain historic neighborhoods like the Albaicín to combat "touristification" and preserve housing for residents. Stay apprised of any rule changes that could impact your ability to operate.
2. Register your property with the Andalusian Tourism Registry and obtain a registration number that must be displayed on all advertisements. You'll need to submit a sworn declaration affirming your property meets all requirements, along with supporting documents like proof of ownership and a first occupation license.
3. Ensure your property meets the quality standards outlined in the Andalusian tourism regulations. This includes having air conditioning, WiFi, a fully equipped kitchen, and a first aid kit. There are also minimum size requirements of 25m2 total and 14m2 per guest.
4. Provide a 24-hour contact number for guests and have a complaint book available. You must also maintain a detailed guest log including names, passport numbers, and dates of stay. This information must be reported to local police within 24 hours of check-in.
5. Register with tax authorities and obtain any necessary business licenses. Short-term rental income is subject to taxation in Spain. Resident owners pay tax on net profit at their marginal rate, while non-residents face a flat 24% rate on gross income. Consult with a local tax advisor to ensure compliance.
6. Invest in high-quality photos and a detailed listing description to showcase your property's unique features and location. Highlight proximity to top attractions like the Alhambra and Albaicín neighborhood. Consider hiring a professional photographer to make your listing stand out.
7. Develop a competitive pricing strategy based on seasonality, local events, and comparable listings. Granada's peak tourist season is spring and fall, with lower demand in summer and winter. Use dynamic pricing tools to automatically adjust rates based on occupancy trends.
8. Establish a reliable cleaning and maintenance routine to ensure your property is guest-ready. Hire a reputable cleaning service to handle turnovers and conduct regular deep cleans. Build a network of trusted contractors to quickly address any maintenance issues that arise.
9. Create a comprehensive house manual with instructions on appliances, WiFi password, parking details, and local recommendations. Provide maps, tourist brochures, and public transit information to help guests explore Granada with ease. Consider offering additional amenities like a welcome basket or late check-out for a memorable stay.
10. List your property on popular booking platforms like Airbnb and VRBO, making sure to include your official registration number. Respond promptly to inquiries and booking requests to secure reservations. Encourage satisfied guests to leave positive reviews to build your reputation and drive future bookings.

By following these steps and staying attuned to Granada's evolving short-term rental landscape, you can launch a successful vacation rental business in this historic Spanish city. Prioritizing regulatory compliance, guest satisfaction, and local engagement can help you thrive in Granada's competitive tourism market.

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

If you have questions about short-term rental regulations and zoning in Granada, there are a few key contacts that can provide guidance:

1. Andalusian Tourism Registry (Registro de Turismo de Andalucía):

This is the regional authority responsible for registering and regulating holiday rentals in Andalusia, including Granada. You can contact them for information on the registration process, requirements, and applicable laws.

Phone: +34 955 062 627
Email: registroturismo.ctrjal@juntadeandalucia.es

2. Granada City Council - Urban Planning Department (Ayuntamiento de Granada - Área de Urbanismo):

The local urban planning department can provide information on zoning regulations and any city-specific rules that may apply to short-term rentals. They can clarify if there are any restrictions or permit requirements based on the location of your property.

Phone: +34 958 248 100
Email: urbanismo@granada.org

3. Granada Tourist Office (Oficina de Turismo de Granada):

The local tourist office can offer general advice on the short-term rental market in Granada and point you in the right direction for more specific regulatory information. They may also have resources for hosts looking to promote their listings.

Phone: +34 958 247 128
Email: infoturismo@granada.org

4. Andalusian Federation of Holiday Home Associations (Federación Andaluza de Asociaciones de Viviendas Turísticas):

This organization represents the interests of holiday rental owners and managers in Andalusia. They can provide guidance on best practices, industry trends, and advocacy efforts related to short-term rental regulations.

Phone: +34 951 308 649
Email: info@favatur.es

When contacting these entities, be prepared to provide details about your property, including its address, type (apartment, house, etc.), and intended use as a short-term rental. Having this information on hand will help them give you the most accurate and relevant guidance.

It's also a good idea to consult with a local attorney specializing in property law and tourism regulations. They can provide personalized advice based on your specific situation and help ensure you are in full compliance with all applicable laws and zoning requirements.

By engaging with these key stakeholders and experts, you can navigate the regulatory landscape for short-term rentals in Granada with greater confidence and peace of mind. Don't hesitate to reach out and ask questions - they are there to help you understand and comply with the rules governing this growing industry in Andalusia.

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

Discussions on forums like Reddit and BiggerPockets provide insight into how Airbnb hosts in Granada feel about the city's short-term rental regulations:

One host on the Granada subreddit mentioned that while the registration process with the Andalusian Tourism Registry can be a bit of a hassle, it's a necessary step to operate legally. They noted that the city has been cracking down on unregistered listings, with inspectors cross-referencing Airbnb ads with the official registry.

Another Granada host on BiggerPockets shared that the city's zoning restrictions have made it challenging to find properties that are eligible for short-term rentals. Many residential areas are off-limits, leaving only certain designated zones open to vacation rentals. This has limited supply and driven up prices for compliant properties.

Some hosts on Reddit have expressed frustration with the city's proposed cap on new licenses in the historic Albaicín neighborhood. They argue that the ban unfairly penalizes responsible operators and won't effectively curb the negative impacts of over-tourism. Instead, they suggest stricter enforcement of existing rules and cracking down on "bad actors."

However, other hosts on BiggerPockets have taken a more pragmatic view. They note that while Granada's regulations may be strict compared to other Spanish cities, they are still more favorable than markets like Barcelona or Palma de Mallorca that have implemented total bans in certain areas. One host advised focusing on properties in the permitted zones and being diligent about compliance.

Overall, the sentiment among Granada hosts seems to be grudging acceptance. While they may not love the added bureaucracy and restrictions, most recognize that the regulations are designed to balance the needs of residents and tourists. The key, they say, is to play by the rules and adapt your strategy to the local market conditions.

As one host put it on Reddit, "The days of the Wild West are over. If you want to do short-term rentals in Granada, you need to dot your i's and cross your t's. It's more work, but it's still a viable business if you do it right."

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.