Every holiday rental property ℆in Spain must have a tourist license. Following this from a legal perspective is not a nice-to-have, and to do so would entail a hefty fine — up to €600,000.

For investors like Kinga, who more and more believe that the best time to have bought in Spain has gone, the legal entanglements are as challenging now as ever for those looking to enter the market.

Who is eligible for the tourist license?
Through obtaining a TLA (Tourist Licence) A tourist license can be issued for individuals and legal entities Both individual persons and companies can apply for a tourist licence. Companies that manage properties for short-term holiday lets can also apply.

In addition, the person applying doesn’t have to be the real owner of the property. “In such situations,” Wajda says, “a formal transfer of management agreement is required in order to lease the premises for the purpose of tourist rentals.”

Avoiding Legal Traps
According to Wajda, the most important aspect — and the one investors must always remember — is to do your due diligence and to be aware of the local legal system when it comes to purchasing real estate.

A tourist license may sound like a formality, but failing to get one before you rent your home could have dire legal and financial repercussions.

With tour of  Spain  tourist ban still being attractive as both a holiday destination and property hot-spot, it is important to know the legal pitfalls in order to protect an investment and reputation.