Rental Property – some things you should know – you have bee

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This topic contains 16 replies, has 9 voices, and was last updated by Profile photo of Anonymous Anonymous 9 years, 10 months ago.

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  • #52580
    Profile photo of Anonymous
    Anonymous
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    Hi Everyone

    I read recently in the SPanish press some thigns which will affect all those who have purchased a property to rent/or use as an ocassional holiday home. The articles in question were int he local (to Valencia) Levante and in Spansih. However the two main points were as follows

    Apparently some nearly 16% of homes in Spain lie unoccupied and the government wants to take action. They are passing or have passed a statute which allows the local town halls to charge and additional 50% IBI (Local rates) and Bassura (rubbish colleciton) on homes that are vacant.

    More wrryingly though is that the government then have the right to enforce rental tennants on the owner so they must rent out that property. I am not sure if this is passed or is just an idea (probably the latter) and possibly as in all things in Span will take a long time to implement – however this potentially means you could have bought a holiday home, not used it for a while and it is declared as unoccupied – you then go there and find a tennant in yur house that may not be of the type that you particularly want – nor at a rental rate you are happy with etc.

    The second thing and almost in complete contradiction to this is that the government (and this could just be in Valencia or it may be Nationwide – I am not sure) is cracking down on those who rent their holiday homes without a licence. The licence is easy to apply for and costs around 200 euros = but you must register any holiday home with the tourist board which must meet certain criteria.

    Failure to comply can result in a hefty fine of upto either €90,000 or €60,000 – I dont remember which – whatever it is a lot of money to fnd you then owe the local town hall.

    Siorry to be vague but I read it in Spanish on a teain and wasnt really paying much attention. It only really struck me later on.

    You have been warned

    Vince

  • #68631
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    Anonymous
    Participant

    Hi Vince,
    Does n’t this all sound typical?

    who will be most affected by this new/intended law???

    thats right the foreign home owners ie the brits

    how can they justify charging more for bassura when, there will be less rubbish put out by an unoccupied property???

    surely this has got to be a joke,, hasn’t it

  • #68632
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    Anonymous
    Participant

    Unfortunately Chilly I dont think it is a joke – I have heard about this also from other sources. But there are a lot of Spanish home owbers who buy a property off plan and just sit on it for five years before selling it. So I dont think it is only Foreign owners affected. In fact I believe Spain has the hioghest propertion of second home owners in Europe and Spanish seem to collect properties like some people collect cars.

    However one thing is for sure – unless they change the law regarding rentals it will be a very unjust and unfair act to bring in – forcing people to rent their proeprty out with all the complications that brings

    Vince

  • #68633
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    Anonymous
    Participant

    Does anyone know where the nearest tourist office to Nerja is for such a licence?

    I have asked my solicitor/lawyer about this licence and they have never heard of it, for someone owning just one property. Just to jog them along, does anyone know the name and/or number for the licence application form?

  • #68635
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    Anonymous
    Participant

    There is a tourist office in the centre of Nerja, on the left hand side before entering the Balcon de Europe. (Near the tea shop that has a balcony).

  • #68636
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    Anonymous
    Participant

    Yep, I know that one but don’t think they would issue the licence from there. Would they?

  • #68637
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    Anonymous
    Participant

    Be surprised if the Tourist Office would issue. Go to the local Council offices.

  • #68638
    Profile photo of Anonymous
    Anonymous
    Participant

    But the original poster said it had to be with the tourist board. I’m not sure the council offices have anything to do with it. Unless I’m wrong.

  • #68639
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi

    I had read something about this before here in the UK, which seems to be a European wide problem. I think you will find it is more to do with long term empty homes (over a year), the homeless and affordable housing.

    This link will give you a flavour http://www.ukpropertyshop.co.uk/news/329.shtml.

    So arriving on holiday at your apartment and finding it occupied by a tenant placed there by the council is not going to happen. Sorry to be the bringer of good news. 😉

    Regards

    Paul

  • #68640
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    Anonymous
    Participant

    Hi All,

    Maybe this will help a little.

    The Murcia regional government say they have no plans to apply a new tax on empty homes, as proposed by the autonomous governments of both Cataluña and the Basque Country.

    Inmaculada García, regional chief for tax and the economy, said on Tuesday that the measure had not even occurred to her, and that it would probably be unconstitutional.

    The Generalitat of Cataluña recently proposed an annual tax of more than 3,000 € on empty homes, as a means of encouraging residential rentals.

    The article can be found here

    http://www.typicallyspanish.com/news/publish/article_8587.shtml

    Best wishes

    Bernard

  • #68642
    Profile photo of Anonymous
    Anonymous
    Participant

    What Vince has correctly posted is true.

    However, the political party PP approved this legal measure a few years ago but it hasn’t been put into effect because there are 13 different definitions for “empty dwellings” and obviously depending on which definition is chosen some people will be taxed and some won’t.

    I believe that the ruling political party will decide on this after the municipal elections are over, where foreigners which are registered can vote, so as not to lose votes. So it hasn’t been officially approved yet -the exact definition of empty dwelling- and until then this measure is wet paper.

    We’ll have to wait and see what happens. Another governmental measure to foster rents in Spain.

  • #68643
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    Anonymous
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    I think that people in spain are not aware the dictatorship in Spain has been dead or is it ?

    It is the owners choice in a free soceity ( resident or not ) if they wish to rent their property out or not. Why would somebody buy a property and leave it empty and not have some form of contribution towards its upkeep ?

    One of the main reasons is the rental law and its enforcements, which deters people from renting out.

    At a time when all the sectors of Spanish property market are at its lowest and arpund 100,000 properties lying empty. This kind of legislation does not encourage people to buy and thus clear the back log of availible property.

    I dont blame the Spanish politicians. I question the voters.

  • #68645
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    Anonymous
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    I think likewise Shakeel. It is a very stupid measure.

    The problem are the way the Town Halls are financed in Spain, they speculate with land and increase the prices of land.

    To foster rentals the laws should be changed and you should be able to kick out the tenant in 3 days if he doesn’t pay not 12-18 months as it now happens.

  • #68646
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    Anonymous
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    It has/was the policy of the Spanish Govt to encourage people to come and live in Spain, so that the Country could move from its agricultural based economy ( Catalonia/ Basque country excluded ) They have benefited from it 7% VAt is a good example.

    As the Spaniards who migrated in big numbers in the 60s, know from their own experince that a migrant will return to his/her Country its a question of times.

    The Northern Europeans do the same in a different way i.e. they stay in Spain for while return in the spring/summer to their respective Countries, for weddings or to spend time with grand children etc.

  • #68649
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    Draken,
    I am not some kind of heart less soul who have pleasure in throwing a family perhaps with children etc.

    The law should be fair, so the law and its spirit is respected and thus people will than be law abiding.

    As you say that tenant should be thrown out in three days. Its how long will it take to go to the Courts that is the problem. If the court takes 18 months and than the tenant is thrown in 3 days. This wont do. Whilst in the mean time the tenants have walked away with your furniture, kitchen sink and radiators etc.

    Further it sadens me to say that where the tenant knows that the landlord is foreign( As they feel they are all mega rich ) they feel its their devine right to cuase as much financial loss as they can inflict.

  • #68659
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    Anonymous
    Participant

    In my experience there are plenty of “professional” non-paying tenants who pay the rent only the first two months and then just occupy it. After suing them successfully, 12-18 months, they move to another property and do the same thing again.

    Having to wait for 12-18 months for a deshaucio legal procedure is absurd. The tenant should be ejected from the dwelling after 3 days of failure to pay the rent. The laws should be hardened. This change would really help the rental spanish market. In any case I dislike the government telling me what I have to do with my empty property.

  • #68662
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    Anonymous
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    Hi Draken,
    As I said many times. We have to start from enforcement of the law first. Passing hard/soft law and placing it in the library is not going to do.

    Remember justice delayed is justice denied.

    I am sorry a society cannot work properly if there is no law & order.
    (Even though I have an Anarchist streak in me )

    Frankly. Spain needs to have a very serious, honest and non political look at itself to find answers to where it finds itself and where it is going in the future before other emerging countries take over.

    Spain has had a very good opportunity by joining EU and benefited greatly from it. However it has quickly being wasted.

    I for one will kiss Spain good bye. Even though I am passionate about the country and its people. Loyalty cannot be taken for granted.

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