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Spain looks to Holiday Rentals for Revenue - Holprop News

22 May 2013 - News

As tourist numbers have dropped and Holiday rental prices fall, Spain want’s to squeeze revenue from Spanish holiday lets.

Legislation is being put in place to make holiday homeowners seek a license for tourism lets. We can see this has already been put into practice in the Balearic region.
The Spanish general law, The Tenancy Act, regulates leasehold activities in this country. This covers ‘permanent housing needs’, which is tenants seeking a lease of a certain duration, to call your property ‘home’, but also regulates leases for purposes other than a permanent home.   Like most things, it’s unclear, but leaseholds are said to have a minimum term. Anything under a year, six months or even a month, could class your tenancy agreement as a Tourism one and could be considered illegal under the new law.

If you own a Villa or Townhouse.

You can choose to rent your property by obtaining a tourism license from the local town hall and it will be compulsory to provide your guests with services, and to charge your guests IVA (VAT). If you choose not to obtain the license and simply rent under the tenancy act law, you must not provide services and therefore will not charge IVA. In either case, you can rent for any amount of time. Beware though, if you are caught providing services at all, or not to be acting correctly you could face huge fines.

If you own an Apartment.

Under this new law, you would not be able to obtain a Tourism license. However, you can rent under the Tenancy Act for any period, but you cannot offer or provide any services.

Any House or Apartment without a Tourism License must be rented by providing a contract between you and your tenant that shows you are following the rules of the tenancy act, and make point that no services are being offered. This could be a crucial document if you are approached by a Tourism Inspector, who will be trying to catch you out.
You should also be aware of how you market your rental, Make sure you don’t mention you provide services; the Tourism Inspectors will look at these advertisements first.

As mentioned before, it’s as clear as mud and some things are subject to corruption, with laws being open ended or just unclear, but whatever you do, educate yourself and don’t get caught out!!



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