New law for private rentals in Andalucia

I wonder how they can enforce that tax is paid in Spain. For example, with non-residents, living in the UK, receiving their income in pounds in their UK bank accounts, and paying tax to HMRC, wouldn't the double taxation rules apply? And if you have already paid HMRC I wonder if the Spanish tax authorities would then have to chase HMRC rather than the individual...

The quote regarding them being 'urban rentals' if you only own one or two is hopeful - as many must fall into this category. Where does the quote come from?

I saw this website too (http://decottalaw.com/holiday-rentals-andalucia/), but also saw it was written in October 2015. Not sure how much things have changed since this was written?

Mark

Thanks, Mark. That's a good link. I didn't know CGT was 19% - I thought it was about 28% - so that will be good when I eventually manage to flog my Spanish properties (hopefully within my lifetime...)er

Re whether to pay tax on rentals in the UK or Spain, I don't think there would be much in it for me, although for many it could be cheaper to pay in Spain if they pay 40 or 45% tax in the UK... If we have a choice - which, as I say, I'm not sure about

Maria Costa Luz Lawyers.

Do you have any advice?

I would like to see a final copy of the boletin when it is published, and if we are required to jump through hoops for the 10 weeks a year we rent our our own holiday home when we are not using it. 

(We declare the income in the UK as 'income earned overseas' as that is what our tax advisor told us.) 

 Don't know why there appears confusion by some. The Double Taxation Agreement between Spain and UK seems quite clear.

The 150,000 euros mentioned, is a fine for those who are required to register the property but fail to do so.  It is not tax, therefore if imposed, it is payable only in Spain. Do not confuse this with tax. It a penalty/fine. If not paid then the property could be embargoed by AEAT (the tax office)  and eventually sold to recover the debt and any expenses incurred.

See re Double Taxation Agreement https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/412302/spain-dtc.pdf

NB    The quote I posted, on  6th, was a quote from:-    http://decottalaw.com/holiday-rentals-andalucia/

A few points:

Eggcup:
"Also in many areas there are no hotels so there is no local competition operating. It just means that tourists will not be able to go to these more rural areas". No, it doesn't necessarily. Read the legislation again. It specifically mentions that rural properties are exempt. Find out the definition of rural properties and get back to us!
"...a rule that you had to have a new gas safety certificate for each new let". I've not seen any mention of this at all, but personally if I was letting a property, it would be all electric. Just common sense if you ask me.
"I wonder how they can enforce that tax is paid in Spain". Having never been a non-resident property owner in Spain I'm not familiar with the modelo 210 - but I think you should be? "I wonder if the Spanish tax authorities would then have to chase HMRC rather than the individual". Ridiculous! Of course not, they'll chase the taxpayer, whose responsibility it is to declare their income and pay any tax due. The double taxation treaty ensures you don't pay the same tax twice in two seperate countries, but that does not mean that you don't still have an obligation to declare your income, and possibly even pay some tax on it in each country. Check your facts.
" That's a good link. I didn't know CGT was 19%". No, it's a terrible link. Their information is seriously out of date. Be careful! The only reliable part of that quote is this: " in every case you have a fiscal obligation to pay tax on the rental in Spain." (My bold!)

John:
"To have the classification of tourist apartments there must be 3 or more apartments". This is referring to "alojamientos turisticos" - you've no doubt seen the red AT plaques with a number of keys (similar to the blue Hotel ones with stars) outside aparthotels, and even the doors to individual apartments in some large complexes that are owned/operated by registered businesses? This is a sepcific classification of business. The quote you posted explains what is required to register as such (there must be 3 or more properties in the one establishment) and then states that for all other holiday rentals the law of urban rentals will apply. This information is clearly wrong and out of date.

As I said, the only reliable part of their information is "in every case you have a fiscal obligation to pay tax on the rental in Spain", and I think it was in response to that part that Eggcup asked about paying tax - not the €150,000 fine, which, as you say, is not a tax but a fine.

A final note on the 210: As far as I know, you are obliged to declare your actual income, not just pay tax on "imputed" income which is the base for those not renting (or claiming not to rent) their property. I imagine a lot of people are either blissfully unaware of this, or deliberately not declaring their true income. These are the ones who are going to have to think carefully about whether to register their properties or not. (Smacks of 720 and previously undeclared income all over again!) Installing a/c is a one off cost, and there are cheap options for wifi available, so let's face it, the real reason for panic among the private landlord sector is that the game is up - you may actually have to pay tax on your earnings for the first time!

This message was last edited by Roberto on 07/02/2016.

Hi Roberto, you are right,, it was a quote dated Oct 2015 The person who quoted it, and  that was the one I had seen when I made my post, was talking about the new regs.  It was not until a poster asked where the quote cam from that  I searched and found the original,but I fled to spot the old date.  Apologies.

I am not into renting anymore so it's academic for me.

http://www.spain-holiday.com/rentalbuzz/dispelling-the-myths-about-holiday-rental-licences-in-spain

Ok - it is dated July 2014. But it states the case with clarity.

Yes, it's a bit out of date on a couple of things, but basically, for those who can't be bothered to open the link, all you really need to know is this "In the UK you could not rent your home out as a furnished holiday let without meeting set standards in safety and cleanliness, and declaring your earnings to the tax man. And this is essentially what the new law in Spain sets out to do."

Spot on! It's shame they haven't posted any more up to date info than this http://www.spain-holiday.com/rentalbuzz/holiday-rental-licences-in-spain-region-by-region because they are actually telling it as it is and seem to know better than many what they're talking about. The news that prompted this thread was the introduction of regulations for Andalucia, but I know there are many owners in other regions, particularly Valencia, on this forum who should perhaps take note also (see last section on the link I gave for Valencian Community)

You can check a DRAFT here

Will let you know once is finally in-force

 You can check about us in these websites below. There you will find DOZENS OF TESTIMONIALS  of our clients:

www.saferent.takelegal.com
www.takelegal.com
www.costaluzlawyers.es
www.wemovetospain.com

Thanks Maria.

Always here!

A joy: 

www.saferent.takelegal.com
www.takelegal.com
www.costaluzlawyers.es
www.wemovetospain.com

Main features of a Tourism Rental:

• Tourism channels are offered:  travel agencies, brokers, organized tourist services and any other channels in which the possibility to book the accommodation is included.

• Property is located on residential land. Those properties on Tourism Land will not be licensed for a holiday home

• Lease is shorter than two months’ time

Properties which are excluded:

• House accommodation offered at no price

• For a period longer than two months´ time

• Rural houses

• Tourist apartments: (blocks of properties situated on Tourism land, under one sole management company)

Liability declaration

Before the property is promoted through tourism channels, a "declaration of responsibility" to the Regional Tourism department needs to be presented.

The minimum content of the declaration of responsibility will be:

• Property Details:  number of beds, according to Occupation License.  If there is no copy of the Occupation License, owner will have to request one from Town Council and if the license has not been granted by the Local Council, one will have to be requested, because it is a prerequisite for filing a declaration of responsibility. You cannot rent your property in the tourism market if there is no Occupation License.

• Information on the owner.

• Details of the person or entity that will operate the activity, and the contract allowing him to do so if the owner is a different person.

After the declaration, the Tourism department will request it to be included in the Register of Tourism of Andalusia.  Once the registration is made, a registration number will be communicated to the owner. This number will have to be made visible on any advertising material.

Prices of rentals will have to be placed anywhere in the home. Overcharging is prohibited obviously and charging for items different to those exposed or indicated on the tourism channels are not possible.

Price conditions, reservation, advanced payments and, where appropriate, cancellation shall be governed as expressly agreed between the parties, which in all cases will be detailed and publicized prior to contracting.

A proof of reservation document will be handed to tenants when they make the initial reservation payment. This document will express full price of the renting, advanced payments and penalties.

Important requisites

• The house will have to have occupational license

• The housing will have to be air-conditioned if rented from May to September, and heating if you rent from October to April (these requirements come into force on 12 May 2017, not May 12, 2016).

• Landlord will provide tourist information about the environment, health care, transportation, plane and guide shows.

• Telephone  number of owner/ manager will be available to tenant.

• Claims forms available.

• First aid kit available.

• Rental can be of the entire house or of some rooms. Rental of whole house cannot be of more than 15 seats.  Rental of rooms cannot exceed 6 seats. In any of the two cases, rooms can be occupied by more than 4 beds.

• Housing will have to be furnished for immediate use.

Responsibility

The responsible person before the Regional Government and the tenant/ tourist will be the person which, appears as in charge of the operation of the apartment in the Liability declaration submitted to Andalucía Regional department

Penalties

From 2000 to 150000 euros

On the complaints forms.

One can go to the town hall and make them out.  

I would suggest renting an apartment from the private owner of one apartment  is completely difference from running a business, e.g. café, hotel, shop, etc.,  or  being  a public service like the police, hospital, notary,   etc. all of which quite reasonably must have the forms.

 (Here I go:  Conspiracy theory/paranoia  maybe)  If the regulations are really important for the protection of the public, and not just another way of eliminating private rentals at the behest of hotels, why would central government  decide that each Region needs it’s own, different,  set of regulations ?

Here is another thought - The role of the community president in all this

To whom, where and how do I report an illegal apartment letting owner?

First, to the community. A community president cannot be seen to be promoting it, and if s/he knows about it and does nothing, then technically s/he could be denounced for ignoring it. Secondly, to the community administrators, who should write to any owner who is letting illegally instructing them to stop or legal action will be taken. Depending on your reception when you report it to the administrators you also have the additional option of requiring them to add it to the next general meeting’s agenda for discussion by all the owners.

Taken from the excellent Janet Anscombe site that discuss all things Canaries where this law has been in force for some time

Johnx: I agree: Too much delegation of competences to Regional Governments: Unnecesarry, counterproductive in many ocassions.

Reports of illegal lettings: registry offices of Junta de Andalucia. 

http://www.juntadeandalucia.es/haciendayadministracionpublica/ciudadania/web/guest/registro-de-documentos

A joy: 

www.saferent.takelegal.com
www.takelegal.com
www.costaluzlawyers.es
www.wemovetospain.com

This message was last edited by mariadecastro on 12/02/2016.

This the latest in English about the regitsration of rental properties:

UPDATE: The Decree (http://www.juntadeandalucia.es/boja/2016/28/6) has now been published today, 11th Feburary 2016 and property registration will begin 3 months from today   After three years of waiting, Andalusia has announced its new regulation for the tourist accommodation in the Official Bulletin of the Andalusian Government (BOJA). Spain-Holiday.com has not only been following this process closely with a vested interested for our homeowners and also as members of FEVITUR (Spanish Federation of Holiday Homes and Apartments Associations). Thanks to our long term experience in the tourism sector in Andalusia, we have also been in counsel with the Regional Government on the decree. 
This regulation of the rental property industry in Andalusia is long overdue and follows in the wake of similar regulations implemented in regions such as Catalonia in 2014 (http://www.spain-holiday.com/rentalbuzz/follow-theupdates-on-regional-regulations-of-the-holiday-rental-market-in-spain).
The entire Decree can be found in full here (http://www.juntadeandalucia.es/boja/2016/28/6) (in Spanish), but here is a summary of the most important points of this decree and the conditions required to register your holiday home.
How do you classify ‘holiday rental accommodation’?
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Holiday rental accommodations are considered to be properties located in a residential zone that are regularly offered for touristic purposes by financial transaction. In other words, they are promoted or marketed via tourism channels.
A tourism channel is considered to be travel agencies, intermediary companies or those that provide tourist services and/or channels that include the possibility of making a reservation.
Excluded from this decree:
a) Homes that are transferred without payment.
b) Dwellings contracted for more than two months continuously by the same tenant (long-term holiday rentals).
c) Homes that are located in rural areas (these are governed by Article 48 of Law 13/2011 of 23 December and Decree 20/2002, dated 29 January, Tourism in Rural and Active Tourism).
d) A group of properties consisting of three or more dwellings with the same owner or operator, which are located in the same building or in neighbouring urbanisations or buildings (these will be classified as Touristic Apartments and will be subject to Decree 194/2010 of 20 April).
What types of properties can be rented for tourism purposes?
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a) A property in its entirety. The maximum capacity will be limited by the license of occupation, but may not exceed 15 people, with a maximum capacity of 4 people per room.
b) A room only.  The owner must also reside in the property. You can use an internationally recognized name (eg. Bed & breakfast, etc.). The maximum capacity will be 6 people with a maximum of 4 people per room.
What are the requirements?
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a) Having an occupational license and complying with technical conditions and quality requirements for housing.
b) Having direct external ventilation or via a patio and having a window shading system (a means of darkening the windows either by blinds or curtains).
c) Being sufficiently equipped and furnished for immediate use.
d) Having fitted air conditioning units in all bedrooms and lounge areas that provide cooling (if rented from May to September) and heating (if rented from October to April).
e) Having a fully stocked medical kit.
f) Providing information about local amenities, i.e. shops, restaurants, nearby parking, medical services, public transport, etc.
g) Having a Complaints and Claims book and sign.
h) Cleaning the property prior to the arrival and after the departure of new customers.
i) Supplying bedding, towels and household goods in general, as well as spare sets.
j) Providing a contact number to be available to answer questions or issues regarding the property.
k) Supplying information and instructions for electrical appliances.
l)  Informing users of the property rules in relation to the use of facilities, pets or smoking restrictions.
How to register a home in the Registry of Tourism of Andalusia
a) The homeowner must submit a statement to the Ministry responsible for tourism, confirming the property is in accordance with all the requirements of the decree. Once submitted, the property can be rented out with immediate effect. The minimum content of the statement of responsibility will include:
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- Property details including catastral reference and the maximum capacity as stated by the license of occupation;
- Information about the owner including contact address for notifications;
- Details of the property management, if applicable.
AT THE TIME OF PUBLISHING THIS ARTICLE, THE ONLINE FORM IS NOT YET AVAILABLE
b) The registration number of the property assigned by the Registry of Tourism of Andalusia must be indicated in all promotional materials or advertising of the property.
c) The Registry of Tourism of Andalusia must be notified of all rental activity and changes – both commencement and cessation.
Deadlines
a) The Decree was published on 11th February 2016.   Registration opens 3 months after this date, which supposedly would make it 11th May 2016, for registering a property in the Registry of Tourism of Andalusia.
b) Homeowners have one year to comply with the requirements of fixed air conditioning and heating units as required in the property.
Who is legally accountable to the Administration and the tenants?
The homeowner is considered to be legally accountable to the administration and holidaymakers, unless otherwise stated.
How do you organise the process of renting, pricing and handling the reservations?
a) All holidaymakers must receive a document, by way of contract, which specifies the homeowner, the registration number with the Registry of Tourism, the holidaymaker’s details, the start and end dates of their stay, the total price of the stay, and contact number.
b). All holidaymakers must present their identification document so that the homeowner can register their data according to the norms of registry of travellers in hotels and similar.
c) The arrival and departure times will be by mutual agreement between the homeowner and the renter. Unless otherwise stated, the arrival time will be at 16:00 and departure time at 12:00.
d) Upon arrival, the homeowner must provide keys and/or access cards to the entire compound, as well as information about the use of appliances and the rules of the community.
e) The advertised price has to be by night (THERE IS NO MINIMUM OF NIGHTS) and it must include the costs of the use of water, light, cleaning and bedding.
f) The terms of price, reservation and payment shall be established between the two parties, however, they must be stated in detail before the confirmation of the booking. Proof of advance payments must be provided, if applicable. 
g) The homeowner may request an advance payment as a deposit up to a maximum of 30% of the total price unless previously agreed.
h) If the renter cancels their reservation up to 10 days beforehand, the homeowner may keep up to 50% of the deposit. If the cancellation is made with less than 10 days to spare, they may keep the entire advance payment.
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© 2002 - 2016 Spain holiday online rentals S.L. - All rights reserved
i) If the homeowner cancels the reservation up to 10 days beforehand, they must return the entire advance payment to the renter. If the cancellation is made less than 10 days beforehand, they must compensate the renter with 30% of the price of the contracted stay. Update: If the rental is cancelled by either party for substantiated reason or force majeure, no compensation will be due
Sanctions
All properties that are not registered or have not filed a declaration of responsibility and are being rented out for tourism purposes, could be fined up to 180,000 euros. Also, any property that does not meet the requirements of this Decree may also be fined.
Spain-Holiday.com will continue to closely monitor the implementation of this decree and will update this

So, nothing much different from what Maria posted already. 

Rather than copying and pasting an entire webpage, a simple link would have sufficed. 

http://www.spain-holiday.com/rentalbuzz/decree-of-the-tourist-accommodation-in-andalucia

Simple, eh?

Oh Roberto! Why so grumpy!

It is the most comprehensive article yet!  AND a few more headaches revealed. e.g

A lot of owners charge for electricity - now it has to be included in the price. With A/C in all bedrooms and living room  this will be a nightmare. Not environmentally friendly at all! Costs will rise accordingly. Or do owners get sneaky and give rebates for 'reasonable use'????? 

Plus 'no minimum' number of nights. That is another hurdle to jump. 

And still I don't understand the timing

 The Decree was published on 11th February 2016.   Registration opens 3 months after this date,

Does that mean owners start to register after 11th May - or that implications arise after 11th May if you have not registered?

Sorry to be persistant - but it matters! And it all seems to be open to interpretation. 

I thank you Mojito for your imput. And I love Terreros!

This message was last edited by randolph on 13/02/2016.

Might be a good article, but I gave up trying to read between the gobbledygook that got copied. Much easier to read if you follow my link. I like to try and make things easy, it's already hard enough understanding the new law!

My interpretation is that if you want to rent after May 11th, you'll need to register. That doesn't mean you HAVE to register straight away, if you're not renting until, say, July. Maybe