Renting out your property in GC
Renting out property is fairly easy. You can either do it privately by advertising in the local papers or on www.segundamano.com or by renting it through an estate agent. The agent will tend to charge one extra month's rent from the tennant and then charge a % of the monthly fee.
Should you declare your earnings?
Most people rent out their properties with private contracts and don't inform the tax office so they avoid paying the income tax on their earnings. In the recent tax returns though if you rent property you must declare who you rent it from so beware the days of getting a little extra cash in hand may be numbered as the tax office may be able to catch up with you.
Renting and the law
You don't have to have a special licence to rent accommodation if it is a long-term let, but you will be liable to Spanish VAT laws. This means that you will have to charge VAT on the monthly rent, and then pay this back to the tax office, Hacienda, on a quarterly basis. One of the many Gestorías or Asesorías in Spain will take care of the paperwork for you for a small fee.
If, however, you intend to let out your property on a short-term rent basis to tourists, you will need to check that the property itself has authorisation for tourism use and holiday rentals. Licenses for this purpose have to be approved by the local authorities and any property owners who venture into holiday rentals without the license are liable to heavy fines.