San Sebastian Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in San Sebastian

To legally operate a short-term rental (less than 31 days) in San Sebastian, 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. As of October 2023, the city banned new short-term rental licenses in the central districts of Centro-Parte Vieja, Gros, Antiguo-Ondarreta, Ibaeta, and Paseo de Francia due to saturation.
• Meet specific property standards for safety, habitability, and guest amenities as outlined in Decreto 13/2016.
• 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.
• Display your permit number on all listings and advertisements.

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

Short-Term Rental Licensing Requirement in San Sebastian

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

Key steps in the licensing process include:

1. Check with your local council (Ayuntamiento) to determine if a license is required in your specific area. Some popular destinations like San Sebastian are restricting or suspending the issuance of new licenses.
2. If allowed, submit an online form (declaración responsable) to the Basque Government informing them of your intent to begin a tourist rental activity.
3. Provide required documents such as a blueprint of the property, photos, insurance policy, and proof of ownership.
4. Ensure the property meets habitability and safety standards, including proper ventilation, lighting, and fire protection.
5. Once approved, you will receive an official registration number (REATE) that must be displayed on all listings and advertisements.
6. Create an account with the local police (Ertzaintza) to inform them of guest check-ins and check-outs.
7. Be aware that your water bill may increase due to a higher fee for tourist rentals.

Licenses are subject to periodic inspections to ensure ongoing compliance with regulations. Failure to obtain proper licensing can result in fines and legal consequences.

It's crucial for hosts to stay informed of any changes to licensing requirements, as they can vary by city and region within Guipuzcoa. Consulting with local authorities and tourism offices is recommended to ensure all necessary steps are taken.

With San Sebastian's popularity as a tourist destination, the city is trying to balance the economic benefits of short-term rentals with the need to preserve housing for residents. As a result, obtaining a new license may be challenging in certain areas.

For those who successfully navigate the licensing process, short-term rentals can be a lucrative business in San Sebastian. However, it's essential to comply with all regulations and be prepared for potential changes in the future as the city adapts to the impacts of tourism.

Required Documents for San Sebastian Short-Term Rentals

1. To operate a short-term rental in San Sebastian, hosts must have the following documents available:
2. 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 and advertisements.
3. Proof of property ownership, such as a title deed (escritura) or property registry extract. If the host is not the owner, written authorization from the owner is required.
4. Certificate of occupancy (Cédula de Habitabilidad) or first occupancy license confirming the property's legal status and suitability for habitation.
5. Floor plan or blueprint of the property showing room layout, sizes, and amenities, prepared by an architect or building engineer. This is submitted with the permit application to demonstrate compliance with size and facility requirements.
6. Photographs of the property to be registered as a tourist rental.
7. Insurance policy covering the rental activity and potential guest injuries or damages.
8. Complaint forms (Hojas de Reclamaciones) that must be made available to guests in case they wish to file an official complaint.
9. Guest registration form to collect passport details of all adult guests. This information must be submitted to the Ertzaintza (Basque police) within 24 hours of check-in.
10. Written rental contract template for guest stays. The contract should include details like guest names, dates, price, and house rules.
11. Emergency contact information and evacuation plan are posted prominently in the property.

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 tax purposes. 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 San Sebastian, compliance is critical to avoiding costly penalties and operating a successful rental business.

San Sebastian Short-Term Rental Taxes

Short-term rental operators in San Sebastian 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 San Sebastian, 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 San Sebastian 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 and subject to different rules.
2. Properties must be registered with the appropriate regional tourism authority and obtain a license or permit before being rented short-term. This typically involves submitting a declaration of tourist use and meeting certain habitability and safety standards.
3. Entire properties must be rented, not individual rooms, unless the owner resides on-site during the rental period. This is to prevent the proliferation of unlicensed hostels and guesthouses.
4. Detailed guest information, including passport details, must be recorded and submitted to the local police within 24-48 hours of check-in for all guests over age 16. This is a legal requirement for all types of tourist accommodations in Spain.
5. 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 and type of property.
6. All rental income must be declared and relevant taxes paid, including VAT for professional hosts, personal income tax on profits, and social security contributions in some cases. Failure to comply can result in significant fines and legal consequences.
7. Many cities and regions limit the total number of short-term rental licenses available, restrict them to certain zones, or cap the number of days per year a property can be rented to tourists. These measures aim to protect housing availability and affordability for residents.

It's important to note that these baseline national rules are often supplemented by more stringent regulations at the regional and municipal levels. Cities like Barcelona, Madrid, Valencia, and Palma have some of the strictest short-term rental laws in Europe.

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 vacation rentals and its impact on housing markets and resident quality of life.

For property owners looking to start an Airbnb 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 navigate the complex and evolving legal 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 San Sebastian Strictly Enforce STR Rules?

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

Several hosts have reported that the city is actively monitoring platforms like Airbnb and issuing violation notices to unlicensed properties. In October 2023, the mayor announced a complete ban on new short-term rental licenses in the central districts to combat overtourism and protect housing for residents.

One Airbnb host shared on Reddit, "My license application was rejected and the city warned there are illegal rentals out there. It's not worth the risk anymore." Another noted, "The rules are getting stricter every year. I'm glad I got my permit early before they stopped issuing them in my area."

Compared to cities like Madrid or Barcelona, San Sebastian is considered relatively strict in its STR enforcement. The influx of tourists has increased by over 85% between 2005-2019, leading to a surge in short-term rentals that has negatively impacted quality of life for locals.

While some unlicensed rentals may still operate under the radar, the risks of fines and legal action are high. Hosts are strongly advised to comply with all regulations and obtain proper permits to avoid issues.

In conclusion, San Sebastian is definitely not Airbnb-friendly compared to other Spanish destinations. The city is cracking down hard on illegal short-term rentals in an effort to control overtourism and preserve housing for residents. Attempting to skirt the rules and operate without a license is extremely risky. Hosts should assume the city will enforce the regulations strictly and take all steps to operate above board. The days of lax STR oversight in San Sebastian are over.

How to Start a Short-Term Rental Business in San Sebastian

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

1. Determine if your property is eligible for short-term rentals. Check with the San Sebastian City Council to ensure your property is located in an area zoned for this use. As of October 2023, new licenses are banned in the central districts of Centro-Parte Vieja, Gros, Antiguo-Ondarreta, Ibaeta, and Paseo de Francia due to saturation.
2. Ensure your property meets all habitability and safety requirements outlined in Decreto 13/2016, including proper ventilation, lighting, fire protection, and accessibility. Make any necessary renovations or repairs.
3. Register your property with the Basque Government's Tourism Registry by submitting an online declaration of tourist use (declaración responsable). Provide required documents such as a blueprint, photos, insurance policy, and proof of ownership.
4. Obtain a tourist rental permit from the Basque Tourism Registry. Once approved, you will receive an official registration number (REATE) that must be displayed on all listings and advertisements.
5. Create an account with the local police (Ertzaintza) to inform them of guest check-ins and check-outs.
6. 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.
7. Create a house rules document outlining expectations for guest behavior, noise levels, smoking, pet policies, etc. Translate it into multiple languages if targeting international guests.
8. 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.
9. Determine your pricing strategy based on local market rates, seasonality, and occupancy goals. Use dynamic pricing tools to automatically adjust rates based on demand.
10. Create listings on popular short-term rental platforms, including your permit number, detailed descriptions, quality photos, and house rules.
11. Arrange for professional cleaning and restocking between guest stays. Hire a reliable cleaning service or manage it yourself if you live nearby.
12. Provide guests with a written rental contract to sign upon arrival.
13. Comply with all tax obligations, including declaring rental income and paying VAT, income tax, and the Basque Country tourist tax as required. Consider hiring a local accountant to assist.
14. Maintain detailed records of all bookings, income, and expenses for at least 3 years.
15. 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.

By following these steps and prioritizing regulatory compliance, you can build a successful and sustainable short-term rental business in San Sebastian. However, with the city's increasing restrictions on new licenses, it may be challenging to enter the market in popular central areas. Careful research and planning are essential.

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

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

1. San Sebastian City Council (Ayuntamiento de Donostia-San Sebastián) - Department of Urban Planning and Housing

Address: Ijentea Kalea, 1, 20003 Donostia, Gipuzkoa, Spain
Phone: +34 943 48 28 00
Email: bulego_nagusia@donostia.eus
Website: https://www.donostia.eus/

2. Basque Government - Department of Tourism, Trade and Consumer Affairs

Address: Donostia-San Sebastián Territorial Office, Andia Kalea, 13, 20004 Donostia, Gipuzkoa, Spain
Phone: +34 943 02 25 00
Email: turismo@euskadi.eus
Website: https://www.euskadi.eus/gobierno-vasco/departamento-turismo-comercio-consumo/

3. Gipuzkoa Provincial Council - Department of Economic Promotion, Tourism and Rural Environment

Address: Plaza Gipuzkoa, s/n, 20004 Donostia, Gipuzkoa, Spain
Phone: +34 943 11 22 90
Email: info@gipuzkoa.eus
Website: https://www.gipuzkoa.eus/

The San Sebastian City Council's Department of Urban Planning and Housing 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 necessary licenses and permits.

The Basque Government's Department of Tourism, Trade and Consumer Affairs is responsible for overseeing the regional tourism industry, including short-term rentals. They can assist with registering your property in the Basque Country's Tourism Registry and answer questions about the requirements outlined in Decreto 13/2016.

The Gipuzkoa Provincial Council's Department of Economic Promotion, Tourism and Rural Environment can provide information on the tourist tax and other provincial-level regulations that may impact short-term rental operators.

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 San Sebastian operates smoothly and complies with all applicable regulations.

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

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

Hosts acknowledge that San Sebastian requires them to register their property with the Basque Government's Tourism Registry and obtain a permit before renting short-term. This involves submitting a declaration of tourist use and meeting specific habitability and safety standards.

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

There are concerns about the city's crackdown on unlicensed rentals and the October 2023 ban on new permits in the central districts to combat overtourism and protect housing for residents. This limits opportunities for new hosts looking to enter the market.

Hosts worry about the risk of 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 San Sebastian 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 San Sebastian's rules are strict on paper, enforcement is inconsistent compared to cities like Barcelona. However, they caution that operating without a permit is increasingly risky as the city ramps up inspections and fines.

Overall, San Sebastian 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.