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There was an article in the Telegraph (I think) on Saturday (12/5) saying that a woman has been fined €20,000 for holiday letting her apartment when it wasn't licensed for tourism.
Apparently a community has to have a special tourism licence. Justin this could be well worth a feature!
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Lizh
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This message was last edited by JeansSis on 5/19/2007.
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I've just passed this article over to my lawyer in Spain and see if he can sort it out, will let you know the outcome, but don't hold your breath as he takes ages to reply.
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Maureen & Dennis
Coto Real
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JeansSis, thanks for info about your Urb, I love stories where the "power of the people" gets things done! Although it does sound as if it has been a hard slog for your site. When I have a bit more time, I might ask you a few more q's about Urbs, if you don't mind, but won't clog up this thread now. When I get a bit more time, I will also make further enquiries of our solicitor re the rental licences, if Maria doesn't reply to your "help" thread.
Norman - of course I'll still be completing, and looking forward to it, as I hope it will be by the end of this month.
Emma
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Thanks JeansSis. Sorry, I didn't scroll down far enough to see trigger! I'll watch space with interest.
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Lizh
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Just heard back from my lawyer, really impressed with his quick response, he said this only applies in Majorca. does anyone do any different?????
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Maureen & Dennis
Coto Real
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See thread called "Property licensing and owner verification" in this section, I think Maria has answered the question there. I would still like more info, how easy is it to get a license, how strictly is it enforced, etc.
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Have just had another reply from MRI, I asked them to double check the laws regarding renting out and this is what I got back.
I have just spoken to another lawyer, the top lawyer at the practise and she has advised me that she has never heard of this, not has anyone in MRI rentals. As far as we are concerned this is not an issue in Spain.
If I can be of any further assistance, please do not hesitate to contact me.
Kind regards,
Johanna Mooney
Regional Co-Ordinator
MRI Overseas Property
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Maureen & Dennis
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Hi Leema. What MRI are saying makes no sense , if you are renting in Spain you should declare the income to the tax office they will tax this at 25% , ( less running costs i expect ) we have heard that the property must be registered with the Tourism Office, you should also tell the tax office in your own country as they would be interested in this income, we dont think the community needs a licence for this only the property that is rented, many communities have lots of rentals as in the towns most of the Spanish rent , sometimes its a holiday apartment on a long let or residential complex , unless the community rules state that you cannot rent I dont think there is any difference between holiday complex / residential unless planning rules state this but have never heard this , the Spanish people will rent where they can afford and they dont take much notice of rules anyway , years ago lots of people rented out even if only for a few months a year and it helped the running costs and the Spanish tax system had many holes in it but now they are catching up fast with all these rentals on the web so they can collect more info very quickly. so you see rental income is not so good these days , you have to pay Renta tax each year + 25% income tax in Spain + possible uk tax as well. But of course you could rent and keep very quiet about it . I dont trust the response from MRI regarding this .The only way find this out properly is a Spanish tax adviser but I dont think my above anwsers are far from the truth. Best of luck with this Rosi n
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I think you will find that the response from MRI didn't in any way relate to possible income tax liabilities.
The original issue relates to the Telegraph article about the need to have a licence in order to rent out a property.
I am awaiting a response from both MRI & my solicitor on this issue. Once I have the responses, I will post on the forum.
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www.alandaluscarhire.com
www.vera-apartment.com
www.verathalassa.es
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If anyone is asking expert advice, I think it's worth asking if there is a difference between a short-term (holiday) let licence and one for long term rentals. I read the Telegraph article as saying it was a tourism licence that was needed rather than a residential one.
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Lizh
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I too have contacted my solicitor and she will get me to me once she has found out.
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I have spent a bit of time looking into this and it seems that the law referred to in the Telegraph article is actually only relevant to Mallorca and some other Balearic islands. It does not apply to mainland Spain, although I believe Barcelona has a similar law to Mallorca.
Therefore for most of us there is no need to worry.
The only thing you do have to worry about is paying your taxes. You MUST declare your rental income to the Spanish authorities and pay tax on those earnings, and if you are resident in the UK you are also supposed to declare it to the tax man back home. A double taxation whammy.
Anyway, hope that puts some minds to rest.
Justin This message was last edited by EOS Team on 5/21/2007.
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Schools in Spain Guide | The Expat Files | Learn Spanish | Earn a living in Spain
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Thanks Justin, that confirms what my Lawyer said. I can stop worrying now.
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Maureen & Dennis
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Hi Justin,
The rental position seems to be getting a little fraught.
Can I throw another angle gleaned from a variety of sources by largely from
some very experineced planning lawyer colleagues:
Presently, this seems to be a more acute problem in parts of the Costa Blanca and the Balaerics than the Costa del Sol - and seems to depend upon the local officials more or less vigorous application of the rules.
It seems that there is a real possibility of you needing to obtain from the Spanish Ministry of Tourism a licence to run your property rental as a commercial operation. Failure to obtain such a licence has resulted in owners being fined.
Whilst the “private” rental of your property has always been permitted it seems that rental activities may fall foul of the Ministry's increasingly strict criteria where you have placed your property with a commercial letting agent. As this changes the nature of your rental from a private arrangement to a commercial activity – which would usually require a licence and some local fiscal administration. This form of rental activity is seen as competing with the Ministry's already licensed Tourism operations that are have been built, regulated and are operated under the limits of, amongst other things, the local area’s General Plan (PGOU).
We are seeking assurances on this matter from our Abogado colleagues and hope to be able to present a package to the market whereby licences can be obtained to protect the legitimate interests of landlords and their tenants.
Regards,
Mark
The Rights Group
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In Andalucia, the letting of houses just for accomodation ( non including catering) are considered " Viviendas turisticas vacacionales" ( Vacational/Holidays Touristic Houses) and are still not regulated by Administrative Regulations ( reglamento). There is just a mention to their characteristics in provision 43 of the Andalusian Tourism General Act (1999) and a prevision to be more specifically regulated in the future. Not yet
The characterisistics of these accomodations are as follows:
1.- Offer accomodation, no catering.
2.- Are rented ocassionally once or more times a year.
3.- Are an entire house or apartments, not bedrooms.
Hope this clarifies.
Maria
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Maria L. de Castro, JD, MA
Lawyer
Director www.costaluzlawyers.es
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Thanks Maria.
Would you not agree that the aim of many of our owner clients is to rent their property either on a long term basis - as opposed to a vacational rental - or to have numerous week and two week rentals throughout the year. Their rentals are therefore not "occassional".
Is it possible that the client's ambitions - particularly where they place their property with a rental agency for the purpose - moves their rental activity from a more simple rental of a "Viviendas turisticas vacacionales" to a more commerical form of rental activity? Does the latter - a commercial activity - fall within the ambit of the Administrative Regulation? If so, would it necessitate a licence, as discussed?
You will appreciate that we do need to assist our clients to resolve this issue as it poses a potential handicap to their rental activity.
Regards,
Mark -The Rights Group.
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I have been checking that with an officer of the Delegation of the Tourism Department of JUnta de Andalucia in Campo de Gibraltar today. He is sending to me full info in short days. I will post it here.
Best,
M.
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Maria L. de Castro, JD, MA
Lawyer
Director www.costaluzlawyers.es
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