VV licence application
Nowadays, the Tourist licence in Spain is compulsory in almost all the Spanish autonomous communities to rent properties for tourist propose or short terms rentals (less than 3 months).
‘Vivienda Vacacional’ in Tenerife and the Canary Islands is the name of Short Term Holiday Letting Licence. The term itself translates literally as “holiday home”. However, in this context, it is more specifically used to denote an apartment or villa that the owner rents out to tourists on short-term lets.
The main reason to work with Island Prime Holidays and do everything legally is that many places in Tenerife have started to make inspections and have issued fines in the case of properties that do not have a tourist licence.
It’s worth bearing in mind… Failure to adhere to terms set out in the Tourism Law are defined as “very serious”, and this band of criminal offences incurres fines ranging from €30,000 to €300,000. Fines for illegally renting out properties as holiday lets have already been issued on average are around the 150,000 Euro mark. Touristic Lets are considered to be stays for any length of time under 3 consecutive months. Therefore, any stay over 3 months is considered as long term and requires a type of rental contract.
The Touristic License must be obtained before renting out your property for Touristic purposes.
Stage One – Initial Assessment of the Property
For an application the Haciendas will need the following documents from the owner of the property:
1. A copy of the passports and NIE Certificates of all registered owners as stated on the Title Deeds (Escritura).
2. IMPORTANT: First Occupation License (Liciencia Primera Ocupación) OR Habitation Certificate (Certificado de Habitalidad). Some owners may already have these, some may have to apply for them. We can apply for these for you using our technical architect at an additional cost or you may apply for it yourself.
3. Your last Annual Rates Receipt (IBI – Impuestos Buenas Inmuebles).
4. Municipal Certificate (Certificado Municipal). PIH are able to get hold of these through our contacts in the following town halls – All town halls (ayuntamientos) in Fuerteventura and in Tenerife – Arona, Adeje, San Miguel de Abona and Granadilla.
5. Certificate from Land Registry (Nota Simple). We will apply for this for you.
6. A copy of your Title Deeds (Escritura).
7. An authorization Letter from you to grant us the permission to apply for a Tourist License on your behalf.
External costs of the First Stage of making your property legal for Touristic Letting purposes in the Canary Islands are as follows:
– Municipal Certificate €35
– Nota Simple €10
– The Habitation Certificate and First Occupation Certificate costs are dependent on the property and our technical architect may have to apply for these who will present you with a separate bill for each individual property.
– These external costs are non refundable.
If you would like to make it easy and without headaches, we can help you with all the above. Our charge for carrying out the first step of this process is €100 plus 7% IGIC (Canarian General Tax rate, our equivalent of VAT)
External costs (non refundable) of the First Stage of making your property legal for Touristic Letting purposes in the Canary Islands are as follows:
– Municipal Certificate €35
– Nota Simple €10
– The Habitation Certificate and First Occupation Certificate costs are dependent on the property and our technical architect may have to apply for these who will present you with a separate bill for each individual property.
Stage Two: Application for Tourist License
Once Stage One is complete, we will have a good idea of whether or not your property in the Canary Islands will be granted a Touristic License. If we think there is a good chance you will be granted a Touristic License, we will proceed on to Stage Two…
1. Enrolment in the Tax Office (Hacienda) and in IGIC (VAT) Registry.
2. We will need a Floorplan of your property (carried out by our technical architect if you do not have one).
3. Photographs of each room. Should you require professional photographs, this can be arranged and given to you which you can use in your future advertising campaigns.
4. Your home address, contact telephone numbers and emails.
5. The maximum occupancy of your property, by rooms.
6. The commercial name of the property which will be registered as Vivienda Vacacional.
8. A price list which must include 7% IGIC (VAT).
9. We will need to see a copy of your House Insurance Policy. This is to ensure you have the correct insurance policy for holiday lettings. If not, IPH can provide you with an accurate and safe policy, which will provide you with the correct cover needed for a holiday letting.
10. We will need a Power of Attorney (Poder) in order to present the documentation on your behalf. Or, you can let us know when you are available to come with us to the Town Hall so we can personally make the application with you.
11. A sworn declaration of responsibility, this can be made by the owner, or the letting agent.
If you would like to make it easy and without headaches, we can help you with all the above. Our fees for Stage Two of applying for a Tourist License for your property (not including external costs) will be €225 (plus 7% IGIC/tax).
Please note our fees DO NOT include the external costs, payable to the local authorities.
When applying for the VV licence there are requirements which the property must meet. You can see the list of the requirements HERE. After issuing your VV licence, an inspection can happen where these required basics will be checked.
Paying Taxes on a Touristic Let
Our trusted associates can handle your tax returns for you. Every bill related to your property you receive must have your name, address and NIE number on it plus the name, address and CIF Number (tax number) of the supplier of the service. Expenditures may only include anything that allows the property to be let. For example, electricity bill, community fees, water bill, insurance, rates, taxes paid, repairs, telephone, Internet, etc. However, expenditures are subject to a personalized discussion with our tax experts (due to Brexit implications).
