If you have ever looked at property in Spain, you may have come across the word ‘bajo local’. This is commercial space on the ground floor, often used for shops, offices or cafes. However, in recent years in Spain, and especially in the popular tourist region of Alicante, a new trend has emerged: the transformation of bajo locales into cosy flats with a tourist licence. Let’s take a look at how to do this and what advantages it can bring.
What is a bajo locale?
A bajo locale is a commercial space located on the ground floor of a building, usually with a separate entrance from the street. It can be used for a variety of commercial needs, be it a café, shop, hairdressing salon or office. However, with the changing property market and rising flat prices, more and more people are seeing bajo locales as an opportunity to invest in residential property.
Why buy a Bajo Locale in Alicante?
1. Affordable price. Compared to conventional flats, bajo locales are usually much cheaper, especially if they require renovation or redevelopment.
2. Investment potential. If you plan to rent out the property, these accommodations can generate a high income, especially after obtaining a tourist licence.
3. Unique location. Most Bajo locales are in vibrant areas with lots of tourists and good infrastructure, making them ideal for renting.
How to turn a Bajo locale into a residential property?
Turning a commercial space into a residential property is a process that requires careful planning and adherence to all legalities. Let’s break down the basic steps.
1- Evaluate the possibility of remodelling
Before you buy a Bajo locale, you need to make sure that it can be converted into a residential property. This depends on several factors:
Local zoning regulations. Contact the Alicante City Hall (Ayuntamiento de Alicante) to find out if it is allowed to change the use of the premises in the zone.
Condition of the building and the premises. Check whether the premises comply with building regulations for housing. For example, there must be sufficient ceiling height and windows for natural light.
2. Obtaining planning permission
If you have been given the green light by the Town Hall, the next step is to obtain the relevant permits:
Change of Use Licence (Licencia de cambio de uso). This is the main document that authorises the change of use of the bajo locale from commercial to residential. To obtain it, you will need to submit a redevelopment project prepared by a licensed architect.
Construction Licence (Licencia de obra). If the premises require major renovation or reconstruction, an additional building licence will be required.
3. Remodelling and renovation
Once you have obtained all the permits, you can start remodelling. It is important to comply with all building regulations to avoid problems in the future. The main requirements are:
The presence of a kitchen, bathroom and sleeping area.
Minimum room sizes that comply with local codes.
Compliance of electrical, plumbing and ventilation systems with standards.
4. Registration with the cadastre
Once the renovation has been completed, you must register the new purpose of the premises with the cadastre and obtain a new cadastral number. This will allow you to officially register the Bajo Local as a residential property.
Tourist licence: the key to extra income
Alicante is one of the most popular tourist towns on the Costa Blanca. Obtaining a tourist licence (Licencia Turística) will give you the opportunity to rent out your flat on a short-term basis and earn a high income.
How to get a tourist licence?
1. Meeting the requirements. The accommodation must meet the standards set for tourist properties. This includes having the necessary furniture and appliances, air conditioning and heating.
2. Document preparation. You will need to collect a number of documents, including a cadastral certificate, a floor plan and an energy efficiency certificate (Certificado de Eficiencia Energética).
3. Submitting the application. The application for a tourist licence is submitted to the regional tourism agency (Agència Valenciana del Turisme). The process takes from a few weeks to a few months, depending on the workload of the agency.
4. Obtaining a licence. Once you have obtained your licence, you can officially rent the flat to tourists through platforms such as Airbnb and Booking.com.
Benefits of owning a local with a tourist licence
High rental income. Tourists prefer centrally located flats, and your investment can pay off in a short period of time.
Flexibility of use. You can use the property for both personal residence and rental purposes.
Increase in property value. If you resell the premises with a tourist licence, its value will be significantly higher.
Potential difficulties and how to avoid them
Difficulties in obtaining permits. To avoid refusals, consult in advance with lawyers and architects specialising in Alicante property.
Legal restrictions on renting. Some areas of Alicante have restrictions on short-term rentals. Be sure to research local regulations so you don’t face fines.
Unexpected renovation costs. Commercial properties often require a significant investment in renovations, especially if they have not been used for a long time.
Bottom line
Buying a bajo locale and converting it into a residential property with a tourist licence is an interesting and promising investment opportunity in Alicante. Despite the challenges, such a project can be very profitable with the right approach and careful planning. If you are ready to invest and want a stable rental income in the tourist centre of Spain, then bajo locale is a great option to consider.