Renting Out Your Property in Marbella: Everything You Need to Know Before Renting Out

This time of the year, many homeowners in Marbella and the surrounding areas rent out their properties, or prepare for renting out during the autumn and upcoming winter months.

The demand for renting properties on the Costa del Sol is extremely high, offering great opportunities to supplement your own budget as a homeowner in Marbella, by renting out your property during the weeks (or months) of the year when you're not there.

However, there are several factors to consider before renting out your property, and in this article, we'll cover some of the essentials you need to know!

📄 Ensure You Have the Right Permits and Rental Licenses

If you want to rent out your property in Marbella as a short-term holiday rental, you'll need the right permits and licenses to do so.

You'll need an LPO (Licencia de Primera Ocupacion) and also register the property for RTA (Registro Turismo Andalucia). You also need to ensure you have permission to rent out your property by your Community.

If you're instead renting out to the same tenants for a longer period (long-term rental) or only to friends and family for occasional days and weeks, you generally don't need a rental license. It's a good idea to seek assistance from a knowledgeable lawyer to ensure you have the required permits and licenses.

If you're looking to safely rent out your property to friends, family and friends-of-friends only, you can sign up and add your home on heimo.

📲 Choose the Right Platform for Your Property Rental

There are numerous property rental platforms where you can list your property in Marbella for rent, both national and international platforms.

Most platforms charge various service fees, usually a recurring percentage fee per booking from you as the landlord, and/or a percentage fee per booking for the tenant. If you list on a platform that charges fees, it affects how much you earn from your rental, as well as the total rental price for your guests.

If you want to avoid high recurring service fees each time you get a new booking, you can list your property on heimo for a fixed monthly fee (currently free of charge), and rent out your property for unlimited nights without any additional service fees for you or your tenants.

🤝 Find Reliable Tenants for Your Rental in Marbella

We've all heard various horror stories about rentals that didn't go as planned. Disruptive guests, damaged furniture and decor, and other problems during the rental period.

It's incredibly important to be selective about who you choose to rent out to, as renting to completely unknown guests often increases the risk of encountering less than ideal experiences.

If you list your home on heimo, you only share your listing to your personally invited friends, family, or acquaintances. Renting out to someone you have some form of personal relationship or connection with is often more convenient and less risky than renting out to complete strangers.

📝 Declare Your Property Rental Income & Taxes

How you declare your property rental depends, among other factors, on which country you have your tax residency, i.e., which country you spend more than 183 days in during a calendar year. The country in which you spend more than 183 days in a calendar year, is usually the country where you are considered a tax resident.

• Tax Declaration for non-residents in Spain: You've previously had to declare rental income in Spain quarterly, but starting in 2024 you only have to do it annually (Note* As this is a recent change, it could be good to consult a tax expert or a lawyer for your specific case)
• Tax Declaration for residents in Spain: You declare in Spain for all your global income once a year in your annual income tax return, including your property rental income. You may also need to declare in other countries if you have property, assets, or income from services or capital in other countries as well.

In addition to declaring the rental income, you also need to pay and declare an annual flat-rate tax in Spain for the time when the property has not been rented out. There is more information on the tax authority's website in each country, and it's advisable to seek help from a tax expert or lawyer for specific questions regarding you and your property.

If you only rent out your property to friends, family and friends-of-friends, without charging any money for the rental period, you're not subject to pay any rental income taxes.

🇪🇸 Read more on the Spanish Tax Agency website here.

If you have any questions regarding renting out your apartment, villa, townhouse or room in Marbella, feel free to reach out to us at [email protected]. Best of luck with your property rental!