You own a Las Palmas Property but you don’t use it all-year-round. Or you want to buy a property in the city as a buy-to-let investment. How do you earn a good yield with Las Palmas rental property?
Here’s my guide to everything you need to know about renting out your Las Palmas property.
Residential rentals in Las Palmas
This is the easiest way to make money from property rental in Las Palmas, but it also yields the least income.
A one-bedroom apartment in the city rents for between 400-600 euros per month depending on location and standards (less away from the beach).
A two-bed flat in Las Palmas rents for 500-700 euros, again depending on location and how it is decorated and equipped. A two-bed beachfront apartment with a terrace costs a lot more to rent.
Contract: Most owners insist on a minimum contract of 12-months, although the law only recognises a six-month minimum. Tenants have to leave a one-month deposit which you return when they leave (but not if they leave early). Spanish law used to be skewed heavily in favour of tenants but is now fairer.
The OCU Consumer Association provides a model rental contract that is legally up-to-date.
Utilities: It’s best to have the light and water in your name, pay the bill, and get your tenant to pay you.
Cutting off the light and water between tenants is a pain as reconnecting them takes time and is expensive.
Agencies: Estate agencies charge one month’s rent to find you a tenant and provide the rental contract. This is paid by the tenant, although some agencies ask the property owner to pay half of it.
If you’d rather rent your apartment independently, put it on Idealista.com. You will get called by agencies.
Tourist rentals in Las Palmas
Renting your Las Palmas property to tourists on a weekly or short-term basis is perfectly legal. Canarian law changed in 2015 and only bans short-term rentals in areas designated as resorts. Since Las Palmas is all residential you can rent out any property (that has the basic paperwork). The details about this are here.
You don’t need permission from the communidad of owners to rent out a Las Palmas apartment unless a majority of the owners have voted to ban it. I haven’t heard of a single case of this happening.
Getting a permit
To rent your property in Las Palmas, you need to go to the island’s Tourist Board (Patronato de Turismo) and get a permit and plaque for the door.
All you need to get the permit is proof of ownership, the cedula de habitabilidad (or equivalent document) which proves that the property is built to legal standards, and to sign a document promising to advertise your property honestly and pay tax. There is no inspection of your property and, provided you have all the paperwork, it is easy to get a permit.
The permit takes two weeks to arrive and you have to pick it up from the Patronato (it’s on Calle Mayor in Triana). There is no inspection of your property but you do have to put up the plaque and put your license number in any advert.
The best places to advertise are large portals like Airbnb and Booking.com.
Mid-term Las Palmas rentals
There is lots of demand, especially in the winter, for rentals that fall between long-term residential lets and tourist rentals.
The typical tenants are retired Scandinavians or Brits who spend several months in Las Palmas to avoid the cold at home. A growing number of digital nomads also spend weeks or months in Las Palmas and want medium-term rentals.
Most Spanish property owners won’t consider renting their residential property for less than a year, even though they can charge more per month.
The rental income from medium term lets is somewhere between residential and touristic rentals.
This type of contract is called a ‘Contrato de Alquiler por Temporada’.
Paying tax on Las Palmas rental income
The tax implications of renting your Las Palmas apartment depend on whether you are resident or non-resident and whether you rent residentially or touristically.
Gran Canaria residents have to declare the income on their annual tax return and pay the corresponding income tax.
Non-residents pay a flat tax on income that is earned in Spain. This includes the income from short-term rentals. It is currently 19% for EU citizens (plus Norway and Iceland) and 24% for everyone else.
If you rent your property to tourists, you need to be registered for the 7% IGIC tax (Canarian VAT) and declare it every three months.
Non-residents would need to read this article and talk to their accountant about tax. All European countries have double-taxation treaties with Spain so you don’t have to pay tax twice.
Las Palmas rental services
Non-residents need a rental service provider, especially for holiday rentals. Things like delivering keys, arranging for cleaning between guests, and troubleshooting.
Las Palmas rental service providers charge a percentage of the bookings. The amount depends on what they do for you. The fee ranges from 10% to 30%.
At the lower end of the scale, everything tends to be done in cash and via word of mouth. At 30% you’d expect the company to handle the entire process including taking bookings and paying for all repairs and maintenance.
Providers that charge 20-25% are the best value as they handle advertising, bookings, keys, cleaning and guest relations, as well as arranging for any repairs and maintenance. You need a provider that can handle enquiries promptly in the main European languages, greets guests with keys, deals with any questions of complaints, and makes sure that your property is looked after.
Las Palmas Property services
I offer a full rental services package for anyone with a Las Palmas Property. The most important thing is to decide which type of rental best suits your property. Not all Las Palmas Property makes a good tourist rental and often you can make a better return with mid-term or residential lets.
Always get independent local advice about the best areas and property types before you buy a Las Palmas rental investment flat. I’m always happy to answer any questions you might have. Just send me a message using the form below, or call me.