Introduction

Every summer, many Swedish, Norwegian and Danish owners of homes on the Costa Blanca consider renting out their property when they are not using it themselves. It is a sensible way to generate income from the property, but it comes with two obligations that are often overlooked: registering the home as tourist accommodation and declaring the rental income to the Spanish tax authorities. Ignoring either can lead to significant fines.

The tourist license: what it is and how to get it

In the Valencian Community, renting a property to tourists on a regular basis (by days or weeks) requires registering it as a Vivienda de Uso Turístico (VUT) with Turisme Comunitat Valenciana. The process, usually handled by a gestor or lawyer, includes:

Filing a declaración responsable with details of the property and the owner.
Meeting minimum requirements: direct ventilation, hot water, a first-aid kit, visible tourist information, and a correct cadastral reference number.
Obtaining the tourist registration number (VT-XXXXX), which must appear on every listing (Airbnb, Booking, etc.).

Advertising a property without this number can result in fines of several thousand euros, and the platforms are required to report host data to the Spanish tax authorities.

Taxation: what a non-resident owner pays

Rental income earned by a non-resident is taxed under the Non-Resident Income Tax (IRNR). The treatment depends on the owner’s tax residence:

EU/EEA residents (including Sweden, but not Norway unless a treaty applies): a 19% rate on net profit, meaning expenses such as community fees, IBI (property tax), insurance, utilities and platform commissions can be deducted.
Non-EU/EEA residents (Norway in most cases): a 24% rate on gross income, with no right to deduct expenses.

Worked example: an apartment valued at €200,000 generating €12,000 in gross annual rental income, with €3,000 in deductible expenses:

Swedish owner (EU): taxable base €9,000 × 19% = €1,710 in tax.
Norwegian owner (non-EU): taxable base €12,000 × 24% = €2,880 in tax.

In addition, for any periods the property is not rented out, owners must also pay imputed income tax — an additional tax on the personal use of the property that many owners are unaware of.

Applicable legal framework

Tourist rental activity is regulated by Law 15/2018 of the Generalitat Valenciana and Decree 10/2021 on tourist-use dwellings. Non-resident taxation is governed by Royal Legislative Decree 5/2004 (Non-Resident Income Tax Law) and, where applicable, by the double taxation treaty between Spain and the owner’s country of residence.

Calculate your own case

To estimate the tax on your rental income based on your personal situation, use our free calculator: rental income tax calculator.

Contact us

At Colás Abogados we have spent more than 18 years helping Scandinavian and international owners meet their tax and administrative obligations in Spain. If you have questions about licensing your property for tourist rental or how to declare your rental income, we would be glad to help.

Holiday Rentals on the Costa Blanca: Tourist License and Tax Obligations for Foreign Owners