Property News | Want to buy a property as a rental investment? Here’s all you need to know about applying for a tourist licence

We are all aware that Javea is known as the pearl of the Costa Blanca North, and it’s no news that many of our sales are to investors looking to do short term rentals on a recently bought property. We all know that short term rentals mean that the property needs to have a tourist licence, so at Javea Home Finders we’ve decided to do some research on the topic since many clients have asked us about this permit. Keep on reading to find out all you need to know about tourist licences.

First things first, it’s important to know that having a tourist licence on a property allows you to do holiday rentals and receive financial compensation in exchange (you don’t need one for winter or long-term rentals). It is illegal carry out holiday rentals in a property that doesn’t have a tourist licence. Even more so it is illegal to advertise a property for holiday rentals without stating the tourist licence number. Yourself and any portal you advertise the property on could face severe penalties as well as the cancellation of the licence and prohibition to get a new one if you do so. The tourist licence number must also be visibly displayed on the property.

Now, for a property to be considered tourist accommodation and get a licence, it must meet certain requirements:

• The property must be rented as a whole and be fully equipped and furnished for immediate use: this means that the property cannot be rented per room.
• The property must be advertised to tourists through channels such as holiday rental online portals, social media, or holiday rental companies.
• The rental is carried out for financial compensation.
• The property is in accordance with the current tourist and town planning regulations.

In regard to the technical requirements of the property, “fully furnished and ready for immediate use” implies that the property has hot water, electrical outlets in all rooms with voltage indication, wardrobes in all the bedrooms and a lift from the 4^th floor, etc. You can contact us to receive the full list of requirements needed to obtain a tourist license.  

To apply for a tourist licence, registration with the Tourism Territorial Services is free of charge and must be done with the office where the rental property is located. The application can be done online if you have a digital certificate, in person or by post. The documents needed for the application are the following:

• Declaration that the property will be used for tourism purposes.
• Information about the accommodation (address, maximum occupancy, among others)
• Responsible declaration of necessary requirements
• Property documents: nota simple, insurance, energy certificate
• Identity document of the owner
• Cadastral reference
• Communal urban compatibility report (issued by the town hall of the municipality where the property is located)
• Application form – please contact us to receive the application form to apply

From the documents needed, it is clear that all of the paperwork of the property must be updated and duly rectified, especially in the case of villas where extensions and renovations have been made.

Another important aspect of holiday rentals is the owner’s rights when using the property as tourist accommodation. We’ve already mentioned that the owner is entitled to financial compensation. Prices must be adequate to the size and quality of the property and should include maintenance and cleaning of the property. Together with this, the owner has the right to request a deposit no higher than 250 euros, unless previously agreed, for any damages or loss of facilities. This deposit is refunded at the end of the rental period minus any applicable deductions. In case of cancellation by the guest, the owner is also entitled to a fee, which must be agreed upon in the contract and may vary between 10 and 100%.

There is more to tourist licences than this quick overview, but we hope that this has helped you get an idea of what you need to apply for this permit. Perhaps you hadn’t thought about investing but now may be considering it? If so, contact us to find out more about the real estate market in Javea and we will help you every step of the way to find the perfect investment property for you!