law change on renting private property to tourists

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This topic contains 20 replies, has 9 voices, and was last updated by Profile photo of Anonymous Anonymous 3 years, 6 months ago.

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  • #57418
    Profile photo of Anonymous
    Anonymous
    Participant

    Madness how many people who own and rent out will loose there property because they bought with the rental income as part of the repayment plan

  • #84453
    Profile photo of Anonymous
    Anonymous
    Participant

    I would have thought that will also depress property values in the South further, as nobody is going to buy a 2nd home, with the intention of renting it out when they’re not there, until this matter is sorted out, so the property market has been stymied yet again.

    D

  • #84220
    Profile photo of Anonymous
    Anonymous
    Participant

    I would have thought that will also depress property values in the South further, as nobody is going to buy a 2nd home, with the intention of renting it out when they’re not there, until this matter is sorted out, so the property market has been stymied yet again.

    D

  • #84447
    Profile photo of Anonymous
    Anonymous
    Participant

    The law is not going to make holiday-lettings illegal, just remove the right under national law and devolve lawmaking on this issu to regional governments, some of which have introduced restrictions. The end result will be restrictions on holiday-lettings in some areas, which of course reduces the value of holiday-homes in those areas.

    The law will not be enforced in many areas. 🙄

  • #84214
    Profile photo of Anonymous
    Anonymous
    Participant

    The law is not going to make holiday-lettings illegal, just remove the right under national law and devolve lawmaking on this issu to regional governments, some of which have introduced restrictions. The end result will be restrictions on holiday-lettings in some areas, which of course reduces the value of holiday-homes in those areas.

    The law will not be enforced in many areas. 🙄

  • #84443
    Profile photo of GarySFBCN
    GarySFBCN
    Participant

    We have a similar issue here in San Francisco. There are many tech startups that make it easy to rent your flat to vacationers, such as https://www.airbnb.com/

    The problem is that the city wasn’t getting its 14% ‘hotel tax’ so they sued. Now there are legal maneuverings, with the city saying that they are owed $1.8 million in tax revenue.

    I’m sure that if this is not resolved, the city will use its many tools to put airbnb out of business.

    Airbnb would do well to just charge the tax, and pass it to city hall.

    PS, I just noticed that there are rooms in some Spanish cities available on airbnb.

  • #84210
    Profile photo of GarySFBCN
    GarySFBCN
    Participant

    We have a similar issue here in San Francisco. There are many tech startups that make it easy to rent your flat to vacationers, such as https://www.airbnb.com/

    The problem is that the city wasn’t getting its 14% ‘hotel tax’ so they sued. Now there are legal maneuverings, with the city saying that they are owed $1.8 million in tax revenue.

    I’m sure that if this is not resolved, the city will use its many tools to put airbnb out of business.

    Airbnb would do well to just charge the tax, and pass it to city hall.

    PS, I just noticed that there are rooms in some Spanish cities available on airbnb.

  • #84445
    Profile photo of Anonymous
    Anonymous
    Participant

    Some of the new laws are hard to understand, especially for foreigners, but the overriding factor is Spain’s desperate need to improve its woefully inadequate tax collection system.

    Because of its membership of the EU and Eurozone, Spain now finds itself on the same playing field as the Northern Europeans, who have far more efficient tax collecting systems in place.

    Spain is trying to catch up, the foreign assets tax is the big one, but there have been many other much smaller schemes, like this holiday rentals one.

    On a personal level I’ve just been presented with a back-dated car emissions tax increase from the regional tax office. It’s not for very much, but it doesn’t make sense. I’m going to pay it, it’s not worth arguing over, but I don’t even know how to. I have a daft three-page letter telling me I owe a small sum of money, but it doesn’t tell me how to pay it.

    (I’ve telephoned the local office and they’ve never heard of it).

  • #84212
    Profile photo of Anonymous
    Anonymous
    Participant

    Some of the new laws are hard to understand, especially for foreigners, but the overriding factor is Spain’s desperate need to improve its woefully inadequate tax collection system.

    Because of its membership of the EU and Eurozone, Spain now finds itself on the same playing field as the Northern Europeans, who have far more efficient tax collecting systems in place.

    Spain is trying to catch up, the foreign assets tax is the big one, but there have been many other much smaller schemes, like this holiday rentals one.

    On a personal level I’ve just been presented with a back-dated car emissions tax increase from the regional tax office. It’s not for very much, but it doesn’t make sense. I’m going to pay it, it’s not worth arguing over, but I don’t even know how to. I have a daft three-page letter telling me I owe a small sum of money, but it doesn’t tell me how to pay it.

    (I’ve telephoned the local office and they’ve never heard of it).

  • #84433
    Profile photo of Chopera
    Chopera
    Participant

    @mark wrote:

    The law is not going to make holiday-lettings illegal, just remove the right under national law and devolve lawmaking on this issu to regional governments, some of which have introduced restrictions. The end result will be restrictions on holiday-lettings in some areas, which of course reduces the value of holiday-homes in those areas.

    The law will not be enforced in many areas. 🙄

    If fewer people in an area end up renting out their properties, then I guess holiday rents may go up (less supply)

  • #84200
    Profile photo of Chopera
    Chopera
    Participant

    @mark wrote:

    The law is not going to make holiday-lettings illegal, just remove the right under national law and devolve lawmaking on this issu to regional governments, some of which have introduced restrictions. The end result will be restrictions on holiday-lettings in some areas, which of course reduces the value of holiday-homes in those areas.

    The law will not be enforced in many areas. 🙄

    If fewer people in an area end up renting out their properties, then I guess holiday rents may go up (less supply)

  • #83950
    Profile photo of Anonymous
    Anonymous
    Participant

    Anymore news on this “new law”. I thought it was going to be debated at the Senate, but i can’t find any details on when?

  • #83931
    Profile photo of Anonymous
    Anonymous
    Participant

    Manana. Just what they need to create confidence in the market.

  • #83001
    Profile photo of Anonymous
    Anonymous
    Participant

    This article in the Spanish daily El Pais (in Spanish) goes into depth on this question of the Government devolving laws on tourist rentals to the autonomous regions, which almost guarantees that holiday-lettings will be restricted in many popular areas.
    http://sociedad.elpais.com/sociedad/2013/05/01/actualidad/1367435704_409018.html

    Powerful local hotel lobbies call tourist rentals “unfair competition” and want them regulated out of existence. They will ge their way. The hotel lobby estimates there are 1.5 million homes offered for tourist rentals in Spain.

    According to research by La Caixa – a Spanish bank – the vast majority of tourist stays in Spain take place in holiday-rentals, as you can see from the following graphic:

    All of which is bad news for the Spanish economy. Tourist rentals offer choice, and bring in business to the local economy.

    And bad news for many hard-pressed owners, Spanish and foreign alike, who depend upon holiday-lettings to bring in a bit of extra cash in these difficult times.

  • #82863
    Profile photo of Anonymous
    Anonymous
    Participant

    Fiona Govan wrote about this problem in The Telegraph yesterday:

    Spain to clamp down on private holiday rentals

  • #82861
    Profile photo of Anonymous
    Anonymous
    Participant

    The owners already pay the tax. I cannot recall the name of this tax. It is 0.25% of the catastral value. This tax was introduced for the very same purpose. ( France has a similar tax called Tax Foncier and in addition the collection of 1€ per night of stay per person )

    If the taxation treatment of rental properties is fair, less pedantic, penny pinching, fair & easy to manage. More people will declare it. I frankly do not think much revenue can be generated by the Hacienda as rental of holiday homes is no stairway to riches. Most owners hardly break even.

  • #82775
    Profile photo of Anonymous
    Anonymous
    Participant

    Article in The Local yesterday about rental restrictions and worldwide asset declarations making Spain less attractive to property buyers:

    http://www.thelocal.es/page/view/foreign-property-purchases-in-spain

  • #82766
    Profile photo of Chopera
    Chopera
    Participant

    Time to buy a hotel in Spain?

  • #82762
    Profile photo of Anonymous
    Anonymous
    Participant

    @chopera and deal with labour laws, social security. I think this time to be a funcinario as always from the time Franco was around. The young Spaniard who wants to become a funcinario is not stupid.

  • #82759
    Profile photo of Anonymous
    Anonymous
    Participant

    I’m actually talking to a hotel company “funded by another well known company in another sector” not currently in Spain about renting a place to run a hotel out off. They are not interesting in buying though which I knew from a start and which is kinda smart. If things just doesn’t go the way they want they want to be able to pick up and leave. They have a working business model in Scandinavia and wants to expand. They are more into the small kind of hotels catering to a niche market. Rather 50 beds instead of 1000.

  • #82730
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    Anonymous
    Participant

    This law was approved by the Senate yesterday. Now it goes back to Congress. Not long now before it becomes law.

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