Monday, 26 May 2014

Renting out property in Spain new legislation

A number of regions in Spain have already implemented new laws surrounding renting a property out in Spain for tourist lets and all regions have new legislation under reveiw which should be implemented during 2014.

What is the legislation

To bring private lets for toursit rental into line with the same measures hotels and licensed hostels and camp sites have to abide by Spain has either brought in or in some regions intends to bring in new legislation.

The legislation requires certain health and safety requirements are met and that a certifcate is obtained from the Junta allowing tourist lets to be undertaken.

What are the penalties for not adhering to the requirements

Each authority will fine heavily any persons found to be letting out on short term rentals their property in Spain if they have not obtained the license and do not meet the laid down criteria. It is rumored that both the regional authority and the tax authorities may scour websites like owners direct to check for lettings not on the registars.  

How will the new laws affect investments for letting.

Covering currently only the more lucrative toursit lets rather than long term rentals, when buying a property in Spain for lettings it will be crucial to ensure your Lawyer in Spain understands the purpose you are buying for and can ensure the property you are buying will be suitable and the best possible ownership structure put in place for your needs and tax efficency.

When taking legal services for buying in Spain it will be more important than ever to ensure you understand from your legal adviser the tax situation and costs of generating an income from your property. Whilst the new laws are off the back of health and safety measures it does also mean avoiding paying tax on the income as a non resident of Spain will become more diffcult.

Read the full article: Legal implications of buying to rent property in Spain

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