Insight into the Spanish property market, guides to help you make informed decisions, and a directory of real estate professionals and home service providers from a source you can trust.
This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins.
When you buy or sell property in Spain the sums of money are large, perhaps one of the biggest financial decisions of your life. The high transaction costs you will face like taxes and commissions only make the decision more important to get right. And when you own property in Spain you face a host of extra challenges to manage, and costs to control. Unfortunately, the Spanish property market is opaque and full of pitfalls, and notoriously unprofessional. Buying and selling property in Spain is not a decision to be taken lightly, and you may find it much easier to buy than sell if you don’t take care. In this market it is crucial to do your own research, and don’t rely exclusively on people who are trying to sell you something – let’s just say they might not have your best interests at heart. Spanish Property Insight is the only independent source of information and analysis of the Spanish property market. Don’t even think about buying or selling property in Spain without subscribing to Spanish Property Insight.
The Spanish Federation of Associations of Tourist Homes and Apartments (FEVITUR) estimates the sector has already lost €448 million so far this year due to coronavirus disruption, and forecasts total loses in 2020 of close to €3 billion.
Easter was a wipe out for a business in which holiday-home owners rent out their properties to tourists. Spain was in total lockdown over Easter, with no visitors allowed into the country, and no domestic tourism allowed either. FEVITUR (Federación Española de Asociaciones de Viviendas y Apartamentos Turísticos) estimated that €188 million of rental income was lost during Easter alone.
The Federation assumes that at least half the season will be lost this year, but hope that a gradual return to normality will mean that rental bookings can be taken for June and beyond.
Any recovery “will be conditioned, in large part, on the recovery of demand in key markets, the recovery of confidence in travel, and the recovery of the economic situation,” says Tolo Gomila, President of the federation.
The holiday-rental sector generates a significant amount of income for Spain, creating jobs, and helping the government raise taxes. With that in mind the federation has sent a proposal to the government with a packet of urgent measures needed to mitigate the damage to the sector.
The measures include a moratorium on local holiday-rental tariffs during 2020, a deferment of social security payments and income taxes for companies in the sector, the streamlining of employment changes to make temporary lay-offs easier, and more money for regional tourism marketing.
There is no sign that the Spanish government has even acknowledged the proposal from the federation. The current Spanish government is hostile to the holiday-rental sector, and unlikely to do anything to make the crisis easier for anyone in the business.
Do private owners have to pay their licences fees and taxes anyway?
In regions like Mallorca where holiday-rentals are heavily taxed, private owners of holiday-homes are wondering if they have to pay for tourism licences and taxes even if there aren’t any tourists this year.
As one reader with a 2-bed holiday apartment for rent in Mallorca explained to me, “the Tourist Licence cost is paid over 5 years. As an apartment we also have to decide up-front how many days we are going to rent out for and commit to the Tourist Tax – this is paid in a lump sum the following May, regardless of how many guests you ended up actually having. So, unless the government decide to be “understanding” on this, we will pay approx €700 soon for our 2020 license and approx €430 next May for our 2020 Tourist Tax. Looking at the situation as it stands today, we may end up cancelling and refunding all guests for 2020.”
I haven’t been able to look into this question as I’ve been out of action fighting the Chinese bat flue for the last three weeks. I hope to find out more next week.
Everything you need to know about property in Spain
Login or Register to read articles without any adverts in the text.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.