Because Spain is crap at ensuring proper taxes are paid?
I understand that Chopera but the actual fact a law is in place to provide a requirement for rental licences should be enough for the ‘investor’ to accept it could be well enforced either currently or in the future.
Incidentally Spain is actually getting much better at collecting taxes. Possibly through EU pressure to reduce debt and dire necessity. The government are now systematically trawling through local Empadron records, then sending round inspectors to the address to see if these records are accurate and if the property is rented out.
Central government pay local councils a fixed sum per year, per head of Empadron recorded residents. Tax bills due on rental income no doubt will follow. 🙁
Yes, but it was resonable for Irene to ask whether these taxes are being enforced or not. Being Spain, you have to be on the ground to have any idea of what the situation is really like, and even then it depends on which part of Spain we’re talking about. A Spanish colleague of mine says he is being stung for a couple of grand in tax each year just for having a second home in Malaga. I know other people with second homes in Extremadura who don’t pay anything.
But I do agree that the Spanish government has upped its game. As I mentioned elsewhere a builder told me a few days ago that all their suppliers now charge VAT, and a friend of mine who works for an energy company tells me the government goes through peoples’ bills to check if properties that are supposedly empty most of the time are in fact occupied and consuming energy (if they are occupied then the assumption is that they are being rented out and there will be a knock on the door).