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Spain cracks down on home rentals to tourists
Tuesday, April 16, 2013 @ 2:39 PM

 Thousands of homeowners in Spain will no longer be able to rent out their properties to tourists on a short term basis if Spain's Senate approves a new law that would make the practice illegal.

Spain's Senate are set to vote in the coming week's on a law that would make it illegal for homeowners to rent out their properties to tourists on a short term basis.

Authorities believe around 20,000 properties will be affected.

The law is aimed at cracking down on the thousands of people who currently rent out their homes independently to holiday makers over the internet, a practice which hotel owners have long criticised for undermining the country's tourist trade.

"It would be a declaration of principle against renting out property for a certain number of days. Now all that needs to be done is to create the rules that would make it illegal to offer an apartment for holiday rental," said Eliseo Martinez Secretary General of Asotur, an organisation which deals with property rental for tourists.

Spain's housing crisis has resulted in a proliferation of apartments that are being rented out "irregularly" to tourists for a certain number of days. In Madrid around 3,000 properties are believed to be on the rental market unbeknown to authorities.

The new legislation, which has already been approved by Spain's Congress, would hand the power of regulating the renting of properties to regional governments and would make temporary leasing by a private property owner illegal.

Short-term renting to tourists, whether for the summer period or on a day-by-day basis, has up to now been a civil right enshrined in Spain’s Urban Rental law (LAU).

But the government appears to have finally listened to the pleas of hotel owners.

In its new National Tourism Plan, the Spanish government stated “there has been a significant increase in this type of leasing” and described it as “unfair competition” for the country’s traditional tourism model.

Property owners in Spain however fear that everyone will be tarred with the same brush, even those who rent their properties legally.

"It’s true that there are a lot of underground deals, but we’re against that", Asotur president David Tornos told 20 minutos.

“We pay our taxes and stick to the law, but hotel owners say we’re pirates. We want to be monitored and to be allowed to do our jobs."

Source: THE LOCAL SPAIN NEWS IN ENGLISH



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12 Comments


Tom said:
Tuesday, April 16, 2013 @ 12:45 PM

If they think all the people who currently come to Spain on holiday in a nice rented villa will suddenly move to a second rate hotel (which is all they would get for the same price) they are more stupid than previiously thought. The tourists will just go somewhere else where they can rent a nice villa in the sun and spend their money, it will be another own goal for Spain.


Dave Spain said:
Tuesday, April 16, 2013 @ 12:48 PM

What are the Spanish on? Ok, those who rent out and dont declare it are well out of order and their time will come. But to say that people cant rent out a property is ridiculous. So lets say a family of four who want a nice private villa with a pool will now find it a lot harder. So the Spanish think they will book into a hotel instead. Wrong! They will go to France/Portugal/Italy/Greece etc instead and spend their money there. By definition, the Spanish authorities have proved themselves time again to have not much business acumen - therefore they are the last people to be trying to 'rescue' the economy. You couldnt make this up!


eggcup said:
Tuesday, April 16, 2013 @ 1:02 PM

Historically, the Spanish authorities have been anti-business, so in a sense this is nothing new. It's so stupid. What businesses are they going to attack next?


Anne said:
Tuesday, April 16, 2013 @ 4:39 PM

Won't it also affect property sales by deterring purchasers who wish to supplement their annual outgoings through occasional rentals? Websites such as owners direct will be left promoting other countries self catering properties, a marketing strategy that would shift attention away from Spain. A definite own goal..... crazy!


Pamela said:
Tuesday, April 16, 2013 @ 7:05 PM

Well this is realy going to sting those who bought in Spain who need the rental income to help pay the mortgage, to be honest i see more reposesions


Elaine said:
Tuesday, April 16, 2013 @ 8:35 PM

It would be hard to believe that a country on the verge of financial breackdown could do such a thing. This would amount to economic suicide.


Erwin said:
Thursday, May 2, 2013 @ 7:08 AM

This is the result of the fact that most house owners who rented out their premises did not pay tax for the rental income (25 %). This decision by the spanisch government is correct.


jon said:
Monday, May 13, 2013 @ 7:07 PM

This goes with the "Asset Disclosure" law. Who in their right mind would invest in Spain now? If we declare our assets then as in Crete we will loose up to 60% of our assets when they decide on the new rate for wealth tax, but we cannot create income to compensate by renting our houses.



Paula said:
Monday, May 13, 2013 @ 7:17 PM

True but they really want to know if anyone is here more than 6 months and not paying tax. Electricity bills tell them if your house is occupied more than 6 months but up to now they did'nt know who was in the house. So with this law either you were here, or renting, either way they get your cash in fines.



Guy said:
Wednesday, May 15, 2013 @ 8:20 PM

Paula, I don't follow your logic. Anyone could have been using the property. I spend a few months a year in Spain, as does my wife - sometimes we're together, other times we're here one at a time with our kids, who are also sometimes here on their own and sometimes with friends. And we let other friends and family use the place when it would otherwise be empty.


J Hart said:
Thursday, May 16, 2013 @ 11:30 AM

I believe the real reason for this action by the Spanish Govt is because the majority of overseas owners do not declare any income or pay any tax on the income they derive thus depriving the Govt of what they are due. The Hotel industry does have a point albeit I have always preferred to stay in an apartment. Greed is what brings such things about. If those who bought without planning ahead but with the idea of renting out illegallly as many do this may not have happened but like all things in life, some always spoil it for those who play by the rules.


carmen said:
Sunday, May 19, 2013 @ 9:13 PM

Spain is not banning holiday villas..they are trying to promote safe, legal holiday apartments and villas that are in suitable conditions with the correct guarantees and located in the right places for the tourists and not in a residential area disturbing the local working population.The owners of these businesses will be asked to pay the local tax contributions applied to businesses in tourist resorts and declare their income.Tax dodgers who are ripping off the tourist with accommodation in the wrong area will have to move and open up shop legally if they still wish to be in the tourist trade or face fines. Difficult to understand?


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