In recent years, the Costa del Sol has established itself as one of the favorite destinations for travelers from around the world. In this context, tourist use housing (VUT, for its initials in Spanish) has become an increasingly attractive option for those looking to invest in the real estate market in Estepona.
Both property owners and investors see this type of accommodation as a profitable way to take advantage of the rise in vacation rentals, provided they fully understand the regulations and specific conditions governing these types of properties.
The growing tourist demand has driven the need to regulate properties intended for short-term rentals. Understanding what a tourist use housing is, what its requirements are, and how it differs from other types of accommodation is key to operating safely and legally.
This guide offers you a detailed overview of everything you need to know if you’re thinking about investing in or registering your property as a VUT in Estepona.
What exactly is a tourist use housing (VUT)?
A tourist use housing (VUT) is a real estate property intended for the temporary accommodation of tourists in exchange for financial compensation. In Andalusia, and specifically in Estepona, these properties must comply with regional regulations and be registered in the corresponding Tourism Registry.
Unlike long-term rentals, VUTs are used exclusively for tourism and short stays, so their rental contracts are not governed by the Urban Leases Act (LAU). To be considered as such, they must be promoted through tourism marketing channels and meet the habitability and safety requirements established by law. Furthermore, the tourist activity must be clearly identifiable both in its promotion and in the rental of the property.
VUT vs. Tourist Apartment vs. Vacation Home: Clearing Up the Confusion
The differences between tourist use housing and a tourist apartment or vacation home can cause confusion. Although they may seem similar at first glance, the law establishes different categories with distinct legal and tax implications.
A tourist apartment is usually located within a complex with shared services such as reception, cleaning, or dining. It requires a specific license and is subject to more regulated management. On the other hand, a vacation home may be synonymous with VUT in some regions, but it is also used more generally to refer to any tourist accommodation. Housing for tourism purposes also raises questions, as some regulations include it as a legal term while others use it informally.
| Characteristic | Tourist Use Housing (VUT) | Tourist Apartment | Vacation Home |
|---|---|---|---|
| Management | Generally managed directly by the owner or an external manager | Part of a tourist complex with shared services | May be synonymous with VUT or have nuances depending on the region |
| Services | Basic services (cleaning, bed linen) | Shared services (reception, daily cleaning, etc.) | Basic services |
| Regulations | Governed by regional VUT regulations | Governed by specific regulations for tourist establishments | Depends on the region, may be the same as VUT |
| Taxation | Personal Income Tax (IRPF) and VAT (IVA) | Personal Income Tax (IRPF) and VAT (IVA) | Personal Income Tax (IRPF) and VAT (IVA) |
VUT vs. Tourist Apartment: The key lies in management and services
The main difference between tourist use housing and a tourist apartment lies in the management of the property. While a tourist apartment is usually part of a professional operation with integrated services, a VUT allows the owner to manage the rental independently, with greater autonomy and flexibility.
This distinction also has tax implications: tourist apartments are subject to VAT, whereas VUTs, if they do not provide hotel-like services, are taxed under personal income tax (IRPF) and may deduct certain expenses related to the activity.
Vacation Home and VUT: Are They Synonyms or Are There Legal Nuances?
In some autonomous communities, the term “vacation home” is used as a synonym for VUT, while in others it carries different legal nuances. Therefore, it’s essential to consult the regional regulations to determine the exact category applicable to your property.
In Andalucía, for example, the concept of VUT is well defined and requires registration in the Tourism Registry. However, other regions may use the term “vacation” more broadly or informally.
Housing for Tourism Purposes: A Generic Term or a Specific Category?
The difference between tourist use housing and housing for tourism purposes is blurry. Some regulations use the term as a synonym for VUT, while others consider it a generic category that encompasses all types of tourist accommodations that are not hotels.
It is important to check whether this concept has legal implications in the region where the property is located. In any case, the key lies in whether the accommodation is offered regularly, through tourist promotion channels, and at an agreed-upon price.
Regulations for Tourist Use Housing in Estepona: Requirements and Obligations
Complying with tourist use housing regulations in Estepona is essential to avoid penalties and ensure a safe experience for both the owner and guests. In Andalucía, VUTs must be registered in the Tourism Registry and meet a series of technical requirements.
Among the requirements for a tourist use housing are:
- Direct ventilation to the outside.
- Proper furnishing.
- Cooling and heating systems.
- First aid kit.
- Complaints form.
- Appliance user manuals.
- In addition, compliance with accessibility and safety regulations is required.
As for obligations, the owner must report guest information to the police, provide details about prices, conditions, and services, and have a specific insurance policy. Penalties for non-compliance can be severe, ranging from fines to disqualification from renting.
Tourist Use Housing License and Registration: Step-by-Step Process
To operate legally, it is necessary to obtain a tourist use housing license and register it with the Junta de Andalucía. The process begins with a responsible declaration and the submission of basic documentation such as the cadastral reference, number of rooms, and compliance with the requirements mentioned above.
Once the procedure is completed, a mandatory registration number is assigned, which must appear in all publications or online platforms. The costs are low, but it is essential to meet deadlines and ensure that the information provided is accurate. Having legal advice can greatly facilitate this process.
Insurance for Tourist Use Housing: Is It Mandatory? What Coverage Do You Need?
One of the most important requirements is having insurance for tourist use housing. This insurance is mandatory and must include civil liability coverage against damage to third parties.
In addition to liability coverage, it is recommended to take out a multi-risk policy that covers fire, theft, water damage, and other unforeseen events. This way, the owner is protected against potential claims or accidents that may occur during the guests’ stay.
Tourist Use Rental Agreement: Essential Clauses to Protect Your Interests
The rental agreement for tourist use housing is essential to protect your rights and interests as a property owner. It should include clauses on the price, duration, terms of use of the property, liability for damages, security deposit, and contract termination.
We recommend including a detailed inventory of the items in the property, as well as clauses regarding cleaning, maintenance, and compliance with community rules. While templates are available online, it’s advisable to tailor the document to the specific needs of your property. Therefore, consider seeking legal advice to draft a customized contract.
Taxation of Tourist Use Housing: How Are Vacation Rental Incomes Taxed?
Income from tourist rentals must be declared in the personal income tax (IRPF) as real estate capital income. Certain expenses can be deducted, such as property tax (IBI), insurance, repairs, utilities, and platform commissions.
Regarding VAT, if hotel-like services are not provided, it does not apply. However, if services such as cleaning, reception, or others are offered, it could be considered an economic activity subject to VAT. In case of doubt, it is best to consult with a tax advisor to properly declare income and optimize your tax burden.
How much can you earn with a tourist use housing in Estepona? Factors That Influence Profitability
The profitability of a VUT in Estepona depends on multiple factors: location, condition of the property, capacity, amenities, time of year, and quality of management. Areas near the beach or the historic center are usually the most in demand.
With a good strategy, it’s possible to earn higher income than with a traditional rental. The key is to offer competitive accommodation and effectively manage the guest experience, from booking to check-out.
Invest Safely in the VUT Market in Estepona
Investing in a tourist use housing in Estepona is an excellent opportunity if done with the right information, advice, and regulatory compliance. Tourist demand continues to grow, and those who adapt to legal requirements have a lot to gain.
At Cabanillas Real Estate, we help you find the ideal property, register your VUT, and manage every stage of the rental process. If you want to turn your investment into a stable source of income, Estepona is waiting for you with open arms.Our office is located at Avda. España 90, Estepona, Málaga. You can also follow us on our official social media channels, such as Facebook and Instagram, or contact us directly via WhatsApp at +34 667 155 033.
Si tienes consultas puedes contactar en sales@cabanillasrealestate.com
