Small hotel in Spain for foreigners: residence permit, licence and moving

A foreigner can open a small hotel in Spain, but for a non-EU citizen the business itself does not give residence. You need a self-employment residence permit — cuenta propia: a business plan, sufficient investment and a permit for one year at first. The hotel itself opens under regional rules: a declaration to the tourism register and a town hall licence.

Below: which residence permit suits the owner of a small hotel, in what order to proceed, how a hostal differs from a pensión and a casa rural, where new establishments are restricted, which duties start with the first guest and how your personal taxes change after the move. Property prices, occupancy and payback are covered by our partner Finetic in «Buying a small hotel in Spain» — we do not repeat them here.

Which residence permit suits a small hotel owner

Spain grants residence on a legal basis, not for owning a business. For an owner who runs the hotel personally there is one working basis — self-employment. The others are either abolished or closed to this kind of project.

• EU, EEA and Swiss citizens do not need a work permit: they register as EU residents and open a hotel on the same terms as Spaniards.
• Self-employment (cuenta propia) is the main route. The first permit is issued for one year and is tied to a region and a sector. You must show that you meet the requirements Spaniards meet for this activity — that is, the hotel licences; qualification or experience; that the investment is sufficient and creates jobs, including your own. The decision takes up to three months, and silence means refusal (Articles 83–85 of Royal Decree 1155/2024). More on this basis in «Cuenta propia in Spain».
• The startup visa is only for an innovative project with a favourable ENISA report (Article 70 of Law 14/2013). An ordinary small hotel does not count as innovation unless the technology or model is genuinely new — and you have to prove it. How projects are assessed is on the startup visa page.
• The golden visa was abolished from 3 April 2025: buying a building for a hotel no longer gives residence.
• The non-lucrative permit (no lucrativa) lets you live in Spain but not work: you cannot run the hotel yourself on it.
• The digital nomad permit is for work for companies outside Spain. Your own hotel in Spain is a Spanish activity, and this basis does not cover it.

A self-employment permit is renewed if the activity is really carried on and taxes and contributions are paid. A hotel opened «for the permit» and kept closed will not pass renewal.

What comes first: the permit or the hotel

For a self-employment permit you have to show the project itself: where the hotel will be, how much you invest and which licences you will obtain. So the property is chosen before you apply, and the main money is committed in a way that a refusal does not leave you with a hotel you are not allowed to run. The usual order:

1. Region and property. First check whether a new establishment of your category can open there (see the section below) and that the town plan allows hotel use of the building.
2. Business plan and funds. A plan with investment, timing and hiring, and proof of your own funds.
3. Securing the property. An agreement that secures the building for you without binding you to the full deal before the permit decision. Discuss the wording of the conditions with a lawyer before signing.
4. Permit application. From a consulate — a visa; after entry — social security registration within three months, then the foreigner’s card.
5. Purchase, refurbishment, licences, opening.

If you are a non-EU citizen and the property is in a zone of interest for national defence — parts of the islands and border areas — the purchase needs military authorisation. The same applies to a Spanish company in which foreigners hold more than half of the capital (Article 18 of Law 8/1975). If you are buying a hotel that already operates rather than opening a new one, what to check with the seller and how the licence and debts pass to you is covered in «How to buy a business or a hotel in Spain».

Small hotel, hostal, pensión or casa rural

Hotels are regulated by the autonomous communities, so a «small hotel» is named and set up differently in each region. A small establishment usually falls into one of three groups: hostal, pensión or rural accommodation — casa rural and hotel rural. A full starred hotel requires more space and services. Campsites and glamping follow different rules, above all because of the land, — they have a separate article: «Campsite and glamping in Spain for foreigners».

Barcelona is a case of its own. Under the PEUAT tourist accommodation plan, new establishments and extensions of existing ones are banned in the central zone, and in the second zone a new one opens only in place of a closed one with the same number of places (Ajuntament de Barcelona).

How to get a licence for a small hotel

There are two levels of permits. The town hall issues the works and activity licence and checks that the town plan allows hotel use of the building. The region enters the establishment in the tourism register and assigns a category. In most regions you do not wait for an authorisation but file a declaración responsable — a statement that the establishment meets the requirements; checks come later.

• Madrid. The declaration is filed before opening, and you may operate from the filing date; registration in the tourism business register follows. Other permits are needed separately (Arts. 10–11 of Decreto 19/2023).
• Andalusia. For construction or refurbishment, the statement of the future category is filed together with the works licence application, and the region checks it within a month; after the works — a declaration and registration (Article 34 of Ley 13/2011).
• Valencian Community. The declaration goes to the provincial tourism service, with a self-assessment and a list of rooms (Article 21 of Decreto 10/2021).
• Balearic Islands. The DRIAT declaration takes effect only if the same number of tourist places is attached — bought from the common pool or taken from permanently closed establishments on the same island (Articles 23 and 88 of Ley 8/2012).
• Canary Islands. Where new places are limited for environmental or planning reasons, the island council’s authorisation is needed first, before the licence; three months of silence means refusal (Article 24.2 of Ley 7/1995).

These licences are also part of the residence file: the self-employment permit requires the same conditions a Spaniard must meet. The sooner you get the town hall’s opinion on hotel use of the building, the stronger the application.

Small hotel or holiday flats

In 2024–2026 strict rules were introduced for holiday flats — vivienda de uso turístico. They barely touch hotels:

• The single short-term rental register under Royal Decree 1312/2024 does not apply to hotels and similar establishments (Article 2.b). In 2026 the Supreme Court also annulled part of its rules.
• The consent of three fifths of the building’s owners, required for a holiday flat since April 2025 (Article 17.12 of the Horizontal Property Law), does not apply to hotels.
• The surcharge on the IBI property tax of up to 50–150% in stressed areas, allowed by RDL 26/2026, concerns residential properties let to tourists, not hotels.

For an owner this argues for the hotel format: several holiday flats in one building are riskier today than a registered hostal.

What is mandatory from the first guest

• Guest registration. Guest and payment data go to the Interior Ministry immediately and no later than 24 hours after the booking, cancellation or check-in, and are kept for three years (Articles 5–6 of Royal Decree 933/2021).
• 10% VAT on accommodation — the reduced rate for hotel services (Article 91.Uno.2.2º of the VAT Law).
• IAE business activity tax. Hostales and pensiones — group 682, hotels — 681; if the establishment opens less than eight months a year, the quota is 70% (RDLeg 1175/1990).
• Complaint forms (hojas de reclamaciones) — mandatory under the regional tourism laws.
• Tourist tax — where it exists. In Catalonia from 1 April 2026 a 4★ hotel in Barcelona charges €3.40 a night, the rest of Catalonia until 31 March 2027 — €1.80 in 4★ and €0.90 in other establishments. In the Balearics hostales and pensiones charge €1 a day, 1–3★ hotels €2, with a 75% discount from November to April. In Santiago de Compostela — from €1.50 a night, for no more than five nights.

Your taxes after the move

The hotel’s taxes and your personal taxes are different things. After moving you become a Spanish tax resident and pay income tax on your worldwide income — not just on the hotel.

• The Beckham Law. If you run the hotel as a self-employed person, the regime is not available. If you move as the director of your own Spanish company that actually operates rather than just holding assets, the law allows it (Article 93.1.b.2º of the Personal Income Tax Law). This decision is made before the move: the deadline is six months. More in «The Beckham Law in Spain».
• Assets abroad. Accounts, securities and property abroad worth more than €50,000 in each group are declared on Modelo 720 — «Modelo 720 and 721».
• Company or you personally. A hotel held in a Spanish company separates business risk from your personal assets and gives a choice of how to take income — as a director’s salary or as dividends. Plan this together with your residence structure: it decides whether the Beckham Law is available.

Family and life

Your spouse and children join a self-employment permit holder through family reunification — conditions and timing in «Family reunification in Spain». You register with the town hall at the address where you actually live — you need it for healthcare, school and renewal (empadronamiento in Spain). A family reunification permit allows work straight away (Article 19.1 of Organic Law 4/2000 on foreigners), so your spouse can also work in your hotel.

Frequently asked questions

Does a small hotel give residence in Spain?

Not by itself. A non-EU citizen needs a self-employment residence permit: a business plan, sufficient investment and the hotel licences. The first permit is issued for one year and renewed if the hotel really operates and taxes are paid.

Can I get residence by buying a hotel in Spain?

Buying a building no longer gives residence: the golden visa was abolished from 3 April 2025. Residence is granted for activity — if you run the hotel yourself on a self-employment permit.

Is the startup visa suitable for a small hotel?

As a rule, no. The startup visa is only for an innovative project with a favourable ENISA report. An ordinary hotel does not count as innovation unless its technology or model is new to the market.

Can I open a new hostal in Mallorca?

No. In the Balearic Islands new establishments are registered only in high categories — hotels of 4 stars and above, city hotels of 3 stars and above, apartments of 3 keys and above. Hostales and pensiones remain only if they already exist.

Do holiday flats and a small hotel use the same register?

No. The single short-term rental register and the consent of three fifths of neighbours concern holiday flats. A small hotel opens under the regional hotel rules: a declaration to the tourism register and a town hall licence.

What VAT does a small hotel charge in Spain?

10% on accommodation — the reduced rate for hotel services. Separately, in Catalonia, the Balearics and Santiago de Compostela the guest pays a tourist tax.

Do I have to register the guests of a small hotel?

Yes. Guest and payment data go to the Interior Ministry immediately and no later than 24 hours after the booking, cancellation or check-in, and are kept for three years.

Is the Beckham Law available to a hotel owner?

If you run the hotel as a self-employed person — no. If you move as the director of your own Spanish company that actually operates, the law allows it. The decision is made before the move, and you must apply within six months.

Key points about a small hotel in Spain for foreigners

• Residence is granted on a legal basis, not for the hotel: for an owner who runs it, that is self-employment — one year at first.
• The golden visa is abolished; the startup visa is only for an innovative project.
• Region and building first, then the permit, then the deal: a refusal should not leave you with a hotel you cannot run.
• A new hostal cannot open in the Balearics, new establishments are banned in central Barcelona, and the Canaries may require prior island approval.
• From the first guest — Interior Ministry registration, 10% VAT and the business activity tax.
• The Beckham Law is possible only as the director of your own company — decide before the move.

Sources

• Royal Decree 1155/2024 — foreigners regulation, Articles 83–86
• Law 14/2013 — startup visa, Article 70
• Decreto 10/2021, Valencian Community
• Decreto-ley 13/2020, Andalusia
• Decreto 19/2023, Madrid
• Ley 13/2002, Catalonia
• Ley 8/2012, Balearic Islands
• Ley 7/1995, Canary Islands
• Royal Decree 933/2021 — guest registration
• Royal Decree 1312/2024 — short-term rental register
• RDL 26/2026
• Ley 5/2017, Catalonia — tourist tax
• Ley 2/2016, Balearic Islands — tourist tax
• Law 8/1975 — defence zones