Pitfalls of renting property
Thursday, August 9, 2012 @ 11:25 PM
EXPATS RENTING out property to holidaymakers were warned this week they could face huge fines if they fail to comply with Spanish law.
The rental market is booming but the British Embassy said there have been a number of cases where homeowners have been fined up to 30,000€ for failing to have the correct permits.
And as a result the embassy has published advice on the website UKinSpain for would-be landlords who either rent out property or are considering doing so.
A spokesman said for short term lets, either tourist apartments or holiday homes, the regulations varied across different regions but if owners were planning to make a financial return by renting an existing property or buying a property to let, they were advised to seek independent legal advice and check licensing laws at the town hall.
He said: “In some areas the authorities are cracking down on homeowners who rent out their properties to tourists, particularly through online adverts, without complying with Spanish law.”
PROHIBIT
Homeowners should also check that if the property is part of a ‘communidad de propietarios’ – a committee of owners responsible for the management of community areas of apartments and complexes – there were no rules prohibiting or restricting short-term letting.
Generally for long-term lets, the spokesman said there was no need for a special licence but it was still worth seeking professional advice to make sure the rental complied with the law and owners used the correct contract.
An ‘arriendos de vivienda’ was a contract for a minimum of five years and an ‘arriendos de temporada’ was for a year or less. Copies are available from tobacconists.
And the spokesman warned: “Owners of properties should also be aware that whether or not they are resident in Spain, they need to declare rental income to the Spanish tax authorities. Homeowners may wish to seek advice from a professional tax advisor.”
He said it was also worth considering using a Spanish-based letting agent to help find tenants, draw up contracts and help manage the property.
Source: RTN