Hi,
Yes, you should tell the mortgage provider in any changes of use of the property. And declare any rental income both in Spain and the UK (if you pay UK tax). There is a double taxation treaty between the Uk and Spain to avoid people paying tax in both jurisdictions. Any excess difference between the two countries normally has to be paid where you are a registered tax payer.
As for licences, this differs from region to region, so you really need to talk to your town hall/tourism authority. I suspect many people don't have licences when they should, but you really should comply with all regulations to avoid any difficulties further down the line.
If you're renting out a property, then you really are best to consult someone who knows all about the system, like a gestor. They will be able to advise you and make sure you're doing everything by the book
Below are a couple of links you may find useful.
http://www.holidaylettings.co.uk/resources/owner_advice/buy-to-let-guide-for-your-holiday-home/spain:-financial-implications-of-owning-a-holiday-home/a-1-29-1478/
http://www.holidaylettings.co.uk/resources/owner_advice/buy-to-let-guide-for-your-holiday-home/spain:-property-taxes-for-non-residents/a-1-29-1525/
Hope this has been useful.
If you are a UK tax payer, then you should declare any rental income from property abroad, even if you make a loss overall. Under the new rules, until they are repealed next year, you should be able to offset any losses from your holiday lettings venture against any other income you have. You can also deduct expenses such as mortgage interest, lettings agents fees etc from any income to arrive at the final taxable amount.
It's really worth talking to an accountant - he/she will be able to explain exactly how you could benefit and make sure you get the most out of it.
Hello,
Don't know if you are aware of this, but yesterday's UK Budget brought some good news for those liable to UK tax but with properties overseas.
Basically, the benefits that apply to UK furnished holiday lettings (short term), such as offsetting losses from your income, CGT relief and capital allowances, are being extended to such properties in the European Economic Area until 2010.
Not so good news is that the rules are being repealed in 2010, so it's only a short term benefit.
More information can be found here: http://www.hmrc.gov.uk/budget2009/furnished-hol-lets-1015.pdf and http://www.holidaylettings.co.uk/resources/property-news/rental-news/budget-2009:-changes-to-uk-furnished-holiday-lettings-rules-announced/a-2-56-1680/ .
Hope this has been of help to some of you!
They can't legally stop you, providing the community rules don't prohibit short term rentals. However, you should talk to your neighbours and discuss their concerns. You don't want to end up on bad terms when you are there. It's in everyone's best interests that you clear up any problems - you don't want other residents to end up making the holiday unpleasant for your tenants either.
Hi Judy and Geoff,
This is something that has been fairly widely reported in the holiday home rental circle. There has been speculation that owners who rent their property out through internet agencies will have to register with Valencia's Department of Tourism.
This story was covered on the site I work for: http://www.holidaylettings.co.uk/resources/property-news/rental-news/new-regulations-for-private-holiday-home-rentals-in-valencia/a-2-56-1474/ (apologies if the link is not allowed I just felt it was appropriate in this situation as it provides further information on the matter).
Do you have a solictor or legal representative out there in Spain?
Hope this has been of some help but please feel free to PM me or reply on the forum if you have any questions.