How to Rent a Vacation Property?

New Regulations for Seasonal Rentals in 2024

The “Furnished” Bill

Adopted since Tuesday, May 21, 2024, here are the key points of the “Furnished” Bill:

• Reduction of the flat-rate allowance and associated VA ceiling: – 30% for non-classified furnished rentals with a ceiling of €23,000, – 50% for classified furnished rentals with a ceiling of €77,700.
• Mandatory prior declaration by the lessor (not their possible intermediary).
• Main residence: requirement to present the tax notice with the name and address of the furnished rental as the place of taxation.
• Obligation to certify that the tourist rental complies with fire safety requirements (proof must be provided).
• Limitation of the validity of the declaration number to 5 years, renewable.
• Increase in penalties for non-compliance with the rules: fines raised from €50,000 to €100,000.
• Mayoral ability to suspend the validity of the declaration number.
• Requirement to provide the minutes of the general meeting mentioning the decision for a simple majority vote of the co-owners present or represented, in compliance with the current condominium rules, instead of a declaration on honor during the application for approval of an L.C.D at the town hall.
• Maintaining the 120 days limit for main residence rentals.
• Postponement of the Energy Performance Certificate (DPE) requirement (class A > E) to 2034.
• Quotas: adopted, with the removal of the “equivalence” concept.

The next step is the return of the bill to Parliament for a second reading to be adopted before summer.

Focus on the Regulation of Tourist Furnished Rentals in the Basque Country

Regarding high-demand areas such as the Basque Country, the new regulation establishes a “compensation” principle. From now on, owners wishing to rent a property as a tourist rental must offset this activity by providing an equivalent property for local residents. Specifically, this means that for every tourist rental property put on the market, another property must be reserved for long-term rental for permanent residents. This compensation policy applies to the 24 municipalities in the high-demand area of the Basque Country, and it applies to both individuals and entities owning second homes. Feel free to contact us for more information.