Vacation rental management in Galicia, let's talk

The undisputed high season in Galicia spans July and August, especially in the coastal areas of the Rías Baixas and A Mariña Lucense, where occupancy can reach and exceed 95%.

However, profitability is optimized by paying close attention to the mid-season (June and September) and key holidays (Easter, Christmas, May 17th and July 25th).

Galicia is experiencing a strong reduction in seasonality thanks to the Xacobeo Holy Year and the rise of gastronomic and nature tourism, which extends the high-occupancy period through dynamic, event-focused pricing strategies.

Gross profitability in Galicia is very attractive, often even above the national average. Coastal towns with high demand, as well as urban areas such as Vigo, A Coruña or Santiago de Compostela, have recorded gross returns above 8%.

Your earning potential depends on four key factors:

• Premium location: Proximity to beaches, city centers or Camino de Santiago points of interest.
• Quality and amenities: Investing in a “5-star” experience that allows for higher nightly rates.
• Expert management: Applying Dynamic Pricing to adjust rates in real time based on demand and local events.
• Cost optimization: Working with an agency that offers full transparency and performance-based fees, such as the 20% per booking we apply at Cabana Rentals.

Yes, it is completely legal as long as current regional regulations are met. In Galicia, Tourist Use Homes (VUT) are primarily regulated by Decree 12/2017 of the Xunta de Galicia.

The essential requirement is submitting the Responsible Declaration for the Start of Activity (DRIA) to the provincial office of the Galician Tourism Agency. Once submitted, you may legally begin renting your property immediately.

At CABANA Rentals we handle the full management of your holiday home to ensure it complies with all legal requirements. We assist you throughout the entire process!

The main expenses include:

• Maintenance and cleaning: It’s essential to keep the property in perfect condition to receive good reviews. With our management model, we take care of everything.
• Utility bills (electricity, water, internet): Costs vary depending on guest consumption.
• Platform commissions: Airbnb, Booking, and others charge a percentage per booking.
• Professional management: If you delegate management, a percentage of income is applied. Based on our clients’ metrics, with our management your property can generate 20% to 40% more compared to self-management, meaning you delegate AND increase your income.

The areas with consistently high occupancy and profitability are:

• Rías Baixas (Pontevedra and South A Coruña): Sanxenxo, Portonovo, O Grove, and the cities of Vigo and Pontevedra, combining beach, urban and gastronomic tourism.
• A Mariña Lucense (Lugo): Towns such as Foz, Ribadeo or Burela.
• Major Cities: Santiago de Compostela (pilgrimage and cultural tourism), Vigo (urban, beach, business and seasonal tourism, especially Christmas), and A Coruña (urban and business tourism).

Profitability remains high due not only to occupancy but also the potential for elevated rates in high season.

Typically between 2 and 6 weeks.

Once your property meets all technical and documentation requirements (habitation certificate, minimum services, etc.), you only need to submit the DRIA form to the tourism administration.

From the moment the DRIA is submitted and the fee is paid, you are legally allowed to advertise and rent your property. Administrative verification by the Galician Tourism Agency may take several weeks, but it does not delay the start of your activity.

CABANA handles all the paperwork for you so you can start renting without delays or complications.

Taxation focuses primarily on the Personal Income Tax (IRPF).

IRPF: Net rental income must be declared annually as real estate capital gains. Unlike long-term residential rentals, the 60% reduction does not apply. Deductible expenses (management fees, cleaning, utilities, depreciation, etc.) are essential to reduce taxable income.

VAT: Renting the property by itself is exempt from VAT. However, if you provide hospitality-type services (daily cleaning, constant linen changes, catering, etc.), the activity becomes subject to VAT (21%), requiring registration under the IAE tax system. Professional management ensures the most advantageous tax structure.

What is the difference between holiday rentals and long-term rentals in Galicia?

Holiday rentals yield higher short-term income and offer greater flexibility. Long-term rentals provide stability but lower profitability. Holiday rentals are ideal if you want to maximize returns without committing to multi-year tenants.

With an effective management strategy, a well-located holiday home can generate 30–50% more annual income than a conventional rental.

Can my homeowners’ association prevent me from renting my property as a holiday home?

Yes, it can.

The Spanish Horizontal Property Law allows the homeowners’ association to limit or condition short-term holiday rental activity (VUT) through a 3/5 majority vote of both owners and participation quotas.

Alternatively, the community may approve a surcharge of up to 20% on shared community expenses for units operating as holiday rentals. It is essential to review your community bylaws.

What minimum services are required for holiday rentals in Galicia?

Galician regulations require the VUT to be ready for immediate use and equipped with:

• Utilities: Electricity, hot water and heating.
• Equipment: Furniture, utensils and appliances needed for immediate use and for the number of guests hosted.
• Linen and kitchenware: Bed linen, spare towels and sufficient kitchen equipment.
• Information: A first-aid kit and mandatory information for guests.
• Guest registration: All travelers must be registered with the police (Guardia Civil or National Police), a service we fully manage at Cabana Rentals.

What type of property works best as a holiday rental in Galicia?

The most profitable properties are those offering added value and a true 5-star experience:

• Charming homes: Stone houses, properties with gardens, pools or sea views in coastal areas.
• Central apartments: In major cities or near the Camino de Santiago route, prioritizing modernity and comfort.
• Medium–large capacity: Homes for 4–6 guests are in high demand and allow optimal nightly pricing.

In general, a well-maintained, beautifully decorated property with smart technology (such as our electronic locks) will consistently achieve higher occupancy and better reviews.

How can I increase the occupancy of my holiday rental in Galicia?

To maximize occupancy, a comprehensive and professional strategy is essential:

• Dynamic pricing: Adjusting rates based on events, weekdays and real-time demand.
• Multi-platform visibility: Enhanced presence on multiple booking channels (Airbnb, Booking, Vrbo, etc.) with centralized management to avoid double bookings (a key Cabana service).
• Professional photography: High-quality images that showcase your property’s strongest features.
• Guest experience: Flexible, seamless check-in/out (powered by technology), fast communication and immediate issue resolution to ensure 5-star reviews.
• Off-season strategies: Offering special rates for holidays, gastronomy getaways or winter stays to attract local and regional visitors.

At CABANA, we manage everything for you to maximize both occupancy and profitability.