Holiday let clampdown

DID YOU KNOW if you have a property you let for less than 6 weeks at a time (a holiday let) you have to register with the tourist agency and let through them, if you dont you are liable to up to a 30000€  fine and the community you are in will also be fined heavily.

The government are researching holiday lets on the internet and through other media AND TAKING ACTION.

 It would be interesting to hear from anyone that has been fined because of this.  I think that as times are hard the government is probably trying to find money anywhere and everywhere at the moment.

Justin

I may be wrong but I'm sure this only applies to certain parts of Spain - the Balearics, the Canaries and Murcia?

Maybe Maria can clarify?

David

It is possible that people are confusing a 'fine' with the new Tax Laws that apply to non-resident owners as from December 2008, which states that it is irreverent if you let a property or not, you are now culpable to pay a percentage tax based on the either the purchase price or the valuation price, dependent on when you declared your last tax return.

However I do think that 30K euro is a bit excessive!!!

i was recently  considering the purchase of a property solely for holiday lets, the estate agent In Crevillente advised me of this law which is relevent throughout Spain. there is a possibility that some regions will turn a "blind eye"of course, but can you take the risk? 

Techno--That is a different tax again,

i have just found a link to the subject HERE

The Tax I am talking about and the Fine you are talking about are linked.

If you don't pay the tax that ALL Non-Resident Property owners from December 2008 are liable for, then you have to pay a fine! Before December 2008, all Non-Resident Property owners only had to pay Wealth Tax, and paid Tax on 'any' income they received from letting of the property as per their Tax return. As from December 2008, all Non-Residents now have to pay Tax irrespective of if they let a property or not, and therefore must submit a tax return or face a heavy fine!

However again I think that 30K as a fine is a bit on the excessive side, however if people think they will be faced by this, then maybe they will pay the tax that they owe.

 It seems a strange way of encouraging people to buy property in Spain. A whole series of taxes and fines. I bought a property at the end of last year and have tried renting it out. Alas to no avail. So if I were to register with a tourist agency, whatever that is, are they going to find me holidaymakers? I doubt it. The number of prople coming to Spain is falling and measures like this, which will force rents up will drive holidaymakers elsewhere. You just get the feeling that Spain will be the last to get out of the current economic gloom, if ever!

I had no idea we had to submit a tax return after December 2008. As non-residents who don't let their property we thought once the wealth tax was abolished we were off the hook. Bugger, more hard earned dosh handed over for nothing.

Regards, Poppyseed

'It is possible that people are confusing a 'fine' with the new Tax Laws that apply to non-resident owners as from December 2008, which states that it is irreverent if you let a property or not, you are now culpable to pay a percentage tax based on the either the purchase price or the valuation price, dependent on when you declared your last tax return.'

Has anyone challenged this at the EU ?  I have received no correspondance about this tax , my sister - in - law who goes to Spain every week from Gibraltar  has never heard of it nor has she been advised by her Spanish lawyer . If I did not view this web site I would never have known about it so how can they ' fine ' us if they don't even correspond with us.  

Have I had a duff lawyer who never advised me of this tax?   We dismissed her last week as she was costing us a fortune .

Can anyone tell me and my family what is the percentage of tax you  have to pay ?  My sister-in -law is as honest as the day and would be very upset if she thought she was not paying what is due. 

Hi, I have just read the link re the unregistered lettings but I cannot see anywhere where communities can be fined, however if this is true it needs to be addressed.  Residents pay enough already to keep a community going, and what with the problems we have re. non payers ( some home owners have ended up in positions of lack of finance through no fault of there own so I don't want to be judge and jury re this problem.) Also will these rules aply to residents who are using there apartments to run a business within the community  Does anybody have the answer? 

I have owned my apartment since 2006 and have paid my taxes each year...i state taxes as , and check form 214 which we used, you paid wealth tax and renta tax. Wealth tax is abolished but renta tax has always been with us. It's 24% of 2% of the valor catastral which you will find on your IBI bills. It is beacuse there is an assumption you let family and friends use it...or that was what i was told.

Hi, from Mallorca,

3 owners on our complex of 86 who rent their apartments via the Internet have been reported to the Tourist board by a disgruntled German owner.

The tourist board visited the complex last summer and was knocking on doors talking to people.

They have all received registered letters in the last 4 weeks fineing them €3000 each.

They have been given 6 weeks to pay or Legal procedings will start to confiscate the property.

They have instructed a Lawyer to appeal and we await the result.

28SAC

If the fine is not paid an embargo is put on your assets in Spain untill the fine is paid, then legal proceedings take place to remove the embargo. With an embargo your bank accounts are locked and you cannot sell your property.

You have got to be realistic, look at the land grab law which is a far bigger thing.it has taken years of protest by thousands of people to get anything done about it.

Anyway the tax is so small is it worth the bother.

 If I've understood the tax a property with a value of 100,000 Euros will cost 480 Euros a year. I would have thought for most people that is a reasonable amount of money to pay on top of all the other costs of running a second property. I'm seeing my solicitor on Monday to sort out any taxes due for last year. I only owned the place for 2 months in 2008. I suspect I will be charged for the whole year such is the fairness in Spain! Then there is the electrcity company that charges whatever it likes. Takes whatever it feels like from my bank account! Yes, I am getting disillusioned with the whole thing!

Hi Guys

I know of about 40 owners over here in southern spain that will have no idea of this holiday let clampdown. Is it possible that we can have some clarification from your lawyer Justin Please. regards Pat G

kev2006n - Justin - Techno

I would be interested to know an approx average yearly cost of owning a two bed apartment in Spain, including

1  taxes

2 community fees

3 services (gas/electric/water/maintenance to apartment)

4 home and contents insurance

5 anything else i haven't mentioned?

though much is spoken on purchase price on the forum, I havn't seen a cost on the above total, bearing in mind any new taxes/costs?  It would be helpful to anyone looking at the real costs of buying.

As joint owners we both had to pay a wealth tax, it used to be around 370 euros each. Does this new tax operate in the same way ie both owners have to pay?

Regards, Poppyseed