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We are looking to buy a villa in Almeria but have seen a lot of coverage recently in the UK newspapers and on-line media that there will soon be a new local law passed that will regulate short-term holiday lettings of private villas.
We are concerned that whilst we understand that the appropriate taxes, regulatory checks and registrations should be introduced to stop villas being rented out illegally if the law is to be passed we would like to know what it may contain. Whilst it is our intention to use the villa for a few weeks a year we would like to rent it out legally but do not know what this may entail.
Does anyone know when the law is due to be passed and whether it may follow a similar process as Catalonia as the uncertainty for me and many other perspective buyers is likely to delay houses being purchased in the region.
Thansk in advance.
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Please do not rely on the rental to cover your cost. Whilst I agree that we should pay our due taxes. However where the taxation system is not just an equitable the spirit of taxation is lost.
The position in Spain is designed to extract monies out of non residents. There is already a legislation that charges a notional amount whether one rents or not.
Until; recently one was not allowed to offset any expenses such as mortgage interest, maintenance charges for the block etc against the rental income. This had changed, allowing to offset expenses for the dates where the property was rented. i.e. if the property is rented say three weeks in August one could offset the cost for the period of three weeks irrespective of the fact that the property is ready & available to be rented round the year. In addition one has to file a return every three months. ( I am happy to be corrected here if I am wrong )
In view of the above it just not worth renting the property. The Hotel industry is behind the move without realising that there are people who would not like to stay in a hotel for week/s and in addition the number of properties bought by non residents means that these people, their families, friends are going to stay in their properties or why else would they have bought the property in the first place..
I for one let my friends & family stay in my property for free so that the property can be aired, plumbing fittings can work and not seize due to lack of usage due to the washers drying out etc.
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In the region of Almeria, which falls under the Junta de Andalucía (Andalusian local government), the legislation for private holiday homes, has still not been passed. Although we hope to receive news from government early this year. However, recent coverage in the British press, completely misrepresents the subject of the new licences and is potentially damaging to the holiday rentals industry in Spain, which does need to be regulated. Spain-holiday.com has written an article in reply to this coverage, which reports facts, rather than rumours http://www.spain-holiday.com/rentalbuzz/dispelling-the-myths-about-holiday-rental-licences-in-spain and we will keep reporting as further information becomes available for the different regions.
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My husband and I are looking to buy a holiday home in spain so that we can spend six months of the year there and so that it can also be used by our children and grandchildren when we are not there – a family holiday home. The use by our family would ensure the property was not left empty for 6 months of the year with all of the security issues this could raise. However we are now concerned that with the introduction of new rental laws and hearing that authorities in certain areas are checking electricity and water bills to see when a property is used that we would not be able to let our family use the propery without us being penalised. How would one prove that it was family using the property and that it was not being rented out. It is difficult to prove a negative. Would this mean that besides being charged the ‘assumed rental income’ as at present , that we could also be charged income tax on assumed rental income (probably the going rate for the area) for the period our family are using our property. Does anyone know what the position as regards this situation is in the parts of Spain where the new laws have been implimented.
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checking water an electric bills is just “internet rumours” – all properties will consume electricity regardless if occupied; pool pumps, fridges etc – the same for water. Also bear in mind a lot of the bills are estimated and averaged over the months. Stay below the radar is the way ahead and rent out by all means; just don’t declare it to the tax man because nobody else will especially us Spanish :))
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@Beth wrote:
Would this mean that besides being charged the ‘assumed rental income’ as at present , that we could also be charged income tax on assumed rental income (probably the going rate for the area) for the period our family are using our property.
No.
The only tax you would pay is the current ‘non-resident’ property tax which is an imputed ‘assumed rental’ income tax. It applies to everyone that owns a second home, not just Spanish non-residents. You would not pay any other taxes other than this, apart from the usual ones such as IBI, Basura etc which everyone pays.
Ignore the rumours about increased electricity, water etc. If you are not renting your property and receiving income from it and only allowing family and friends to stay there free of charge you have nothing to worry about.
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@louiseb wrote:
Spain-holiday.com has written an article in reply to this coverage, which reports facts, rather than rumours http://www.spain-holiday.com/rentalbuzz/dispelling-the-myths-about-holiday-rental-licences-in-spain and we will keep reporting as further information becomes available for the different regions.
Louise
That’s a very good article and should go some way to dispelling some of the myths that surround this new rental licence system.
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@zenkarma wrote:
The only tax you would pay is the current ‘non-resident’ property tax which is an imputed ‘assumed rental’ income tax. It applies to everyone that owns a second home, not just Spanish non-residents. You would not pay any other taxes other than this, apart from the usual ones such as IBI, Basura etc which everyone pays.
.Rental income is taxable income and has to be declared to the tax authorities where you are tax resident. Failure so to do is a criminal offence. 🙁
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The Spain-holiday article can help clear up some of the myths about holiday rental but misses an important point..not all apartments or villas are considered suitable. The new laws basically define the difference between renting out your property for short term lets or commercializing the property as accommodation for tourists. In Catalonia this has been done by classifying the properties used commercially as viviendas con actividades economicas and removing their residential status. This means that in areas and buildings that are designated as purely residential the permission to convert your home into tourist accommodation may be refused. Homes continually filled with groups of tourists during half the year are not considered the ideal next door neighbour so it is advisable to check that your property is in the correct area and not in the middle of a residential housing estate. In these areas only renting out as a seasonal let is allowed (for a minimum period of a month and no frequent changes). If you are advertising your property as a holiday let at weekly rates with frequent changes your property is subject to the legislation of the tourist dept of the local government
Property owners of holiday lets have long been indifferent to the plight of the local residents (or even hostile to the complaints) as they did not assume responsibility for their clients and the police were attending domestic complaints… now the police are attending complaints against a commercial business. The owner is now responsible for their clients.
It is not difficult to get permission providing the property is in the correct area, but be aware there are more responsibilities than making sure you pay your taxes. -
Hi Fiona,
In our article we cover some of the requirements and criteria set out by each autonomous to community, as to what a holiday rental will need to be able to adquire a licence. And then we have individual articles for each region. In most regions it’s not that a property is considered suitable, but it must fulfill specific standards. In some regions, such as Valencia, it’s not obligatory to apply for a licence, but your property will still need to adhere to the standards set out for licence holders. We understand the situation in Catalonia is unique, in terms of how they are classifying properties in the centre and changing the status of a property.
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@logan wrote:
Rental income is taxable income and has to be declared to the tax authorities where you are tax resident. Failure so to do is a criminal offence. 🙁
Agreed.
If you reread my reply and post you’ll see the question was regarding what tax would be payable for friends and family using the property. If no rent is being charged, no tax is payable beyond that of the standard ‘non-resident’ property tax of owning a second property.
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