[Anonymous]

I own my city centre flat in Barcelona, it is my only property worldwide and I am a resident. When I first moved here with my boyfriend we lived on our savings and had assumed we could find work (like many others do!). Although I eventually found work it was badly paid (another shock) and not enough to support two adults. We are lucky in that we have no mortgage and just need our running costs etc. When I lost my job over a year and half ago I knew it would take me a long time to get another job so we signed up with a local rental agency who rent out to tourists – here in Bcn it is big business and it seems everyone is now doing it.

Anyway, the agency takes 25% of the rental and we get the rest in cash, we manage our bookings and deal directly with our clients. The agency provides a rental contract which they have told me is within the law.

Due to the precarious lifestyle we have in Barcelona and the difficulty of finding and keeping reasonably paid employment we have decided to continue to rent our flat to tourists to give us an income and to be able to save for the future (we have no pension plan in place).

However, I have read a lot in the local press about tourist rentals in the Cuitat Vella (old quarter) of Bcn and that they are considered illegal because very few licences are given out and it will be impossible to apply for one even if we wanted to. Also, we have a problem neighbour in our block who is causing trouble for everyone and he has threatened me to say he will disclose my private business if he doesn´t get what he wants, I am worried he will denounce us and our affairs will be investigated.

I made some inquiries a few months ago to find out where we stand legally and I was told that if it is our only property and we also live in it (which we do inbetween rentals) then we are not breaking the law.
However, the agency we use have just asked me for a document called a Cédula de Habitabilidad which is given out to properties to show they are fit for habitation by humans and meet all the specifications – we were never given one when we bought it although our flat has always been residential.

My other concern is that we have not declared the income we have received because I had thought it was below the threshhold of earnings for two people – I am now worried that I might be forced to pay income tax for the last 18 months earnings.

Does anyone out there know anything about this matter or perhaps is in a similiar situation, it would be good to have some advice. Thanks.

[Anonymous]

You may want to have a read of
http://pub14.bravenet.com/forum/1156608858/show/590675
Or maybe that was you that posted it!

[Author]

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