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Holiday let

Posted: Wed Oct 14, 2020 5:42pm
10 replies574 views6 members subscribed
Pamelapquinn

Posts: 4

Location: Camposol

Joined: 11 Oct 2020

Hi, we’re looking to buy a property to initially use as a holiday let but to retire to when the time comes. We want to be near the bars and shops. Where’s the best area to buy? Also we’d like a weeks holiday next year to have a look around, where’s the best place to go for a holiday let? 

Thanks

Pam, Tony and family x

GraSal

Posted: Thu Oct 15, 2020 2:25am

Posts: 63

28 helpful points

Joined: 5 Oct 2017

Posted: Thu Oct 15, 2020 2:25am

A few words of advice .... have a good read over the forum here about renting properties and all of the licences you require legislation across Spain and massive fines so far not less than 100,000 € if you get caught be newc property inspectors or worse a prison sentance. They also fine your guest renting on average 20,000€ for illegal renting. Illegal renting is now classified as national tax evasion in Spanish law. Renting does not deliver the profits it used to, due to competition, rules and legislation and costs. Its better to understand Spain today and your legal implications rather than as we know from other who are struggling to avoid prison and pay off enormous fines having been caught.

Pamelapquinn

Posted: Thu Oct 15, 2020 2:55am

Pamelapquinn

Original Poster

Posts: 4

Location: Camposol

Joined: 11 Oct 2020

Posted: Thu Oct 15, 2020 2:55am

GraSal wrote on Thu Oct 15, 2020 2:25am:

A few words of advice .... have a good read over the forum here about renting properties and all of the licences you require legislation across Spain and massive fines so far not less than 100,000 € if you get caught be newc property inspectors or worse a prison sentance. They also fine your gu...

...est renting on average 20,000€ for illegal renting. Illegal renting is now classified as national tax evasion in Spanish law. Renting does not deliver the profits it used to, due to competition, rules and legislation and costs. Its better to understand Spain today and your legal implications rather than as we know from other who are struggling to avoid prison and pay off enormous fines having been caught.

Thank you so much for the advice. I was thinking more family and close friends using it and just paying me a little towards maintenance. Would that still fall under the same legal requirement? 

Sunnyspain

Posted: Thu Oct 15, 2020 8:41am

Sunnyspain

Helpful member

Posts: 495

367 helpful points

Location: Camposol

Joined: 30 Mar 2018

Posted: Thu Oct 15, 2020 8:41am

If you want to be within walking distance of bars and shops then sectors A or B.

My key holder rents a property on A sector for holiday lets. It has access to the communal pool opposite the property. Pm me if you want details.

Agree with above ref holiday rentals. You will need a tourist licence and must be displayed on the property. You will also need to pay tax on rental income.

GraSal

Posted: Thu Oct 15, 2020 4:20pm

Posts: 63

28 helpful points

Joined: 5 Oct 2017

Posted: Thu Oct 15, 2020 4:20pm

Pamelapquinn wrote on Thu Oct 15, 2020 2:55am:

Thank you so much for the advice. I was thinking more family and close friends using it and just paying me a little towards maintenance. Would that still fall under the same legal requirement? 

Thank you for your reply and pleased to help

The information received with our Rental Licence states, if you accept any monies you become taxable and require a licence.

If you loan the property to family for a holiday strictly this is permitted but, no monies can passed overr change hands

without you then incurring 22% Spanish Tax on income plus the licence.

Hope this is helpful

Pamelapquinn

Posted: Thu Oct 15, 2020 5:15pm

Pamelapquinn

Original Poster

Posts: 4

Location: Camposol

Joined: 11 Oct 2020

Posted: Thu Oct 15, 2020 5:15pm

Sunnyspain wrote on Thu Oct 15, 2020 8:41am:

If you want to be within walking distance of bars and shops then sectors A or B.

My key holder rents a property on A sector for holiday lets. It has access to the communal pool opposite the property. Pm me if you want details.

Agree with above ref holiday rentals. You will need a tourist licence and must be displayed on the property. You will also need to pay tax on rental income.

Thank you so much. I’ll wait for covid to calm down then book a trip out. Can’t wait to be part of the community x

Ali52

Posted: Fri Oct 16, 2020 9:57am

Posts: 88

48 helpful points

Location: Camposol

Joined: 2 Apr 2019

Posted: Fri Oct 16, 2020 9:57am

If you are from the UK, then remember things are changing drastically in December. Going to be a lot more expensive and complicated to move here. Look at the government (Spanish, not uk) web sites for schengen rules.

LeginSenoj

Posted: Sat Oct 17, 2020 7:05am

LeginSenoj

Helpful member

Posts: 51

57 helpful points

Location: Camposol

Joined: 29 May 2018

Posted: Sat Oct 17, 2020 7:05am

Hi,

Good luck with your plans. Please remember that after 31st December, the cushion of the Brexit withdrawal agreement will cease to exist. No one yet knows if there will be a trade agreement, so it is worth consulting a Spanish tax specialist to see what he implications are for you, of the UK not being in the EU, for example will you be paying 24% tax rather than the 19% on rental profits and will you still be able to deduct costs from your profits before tax. These can make a difference as to whether you receive income for renting or end up using you pro just to pay tax. As has been mentioned, you need to take into account the costs of a tourist licence and probably a management company, if you will be based in the UK. Renting is unlikely to be as profitable post Brexit.

Hope this helps?

Pamelapquinn

Posted: Sat Oct 17, 2020 3:59pm

Pamelapquinn

Original Poster

Posts: 4

Location: Camposol

Joined: 11 Oct 2020

Posted: Sat Oct 17, 2020 3:59pm

LeginSenoj wrote on Sat Oct 17, 2020 7:05am:

Hi,

Good luck with your plans. Please remember that after 31st December, the cushion of the Brexit withdrawal agreement will cease to exist. No one yet knows if there will be a trade agreement, so it is worth consulting a Spanish tax specialist to see what he implications are for you, of the UK not b...

...eing in the EU, for example will you be paying 24% tax rather than the 19% on rental profits and will you still be able to deduct costs from your profits before tax. These can make a difference as to whether you receive income for renting or end up using you pro just to pay tax. As has been mentioned, you need to take into account the costs of a tourist licence and probably a management company, if you will be based in the UK. Renting is unlikely to be as profitable post Brexit.

Hope this helps?

Thanks for that information. To be honest it’s not the renting that I’m particularly interested in. I just want to get a place in preparation for retirement. My family will use it but after reading comments on here I’m not going to rent it out. 

Ali52

Posted: Sat Oct 17, 2020 10:38pm

Posts: 88

48 helpful points

Location: Camposol

Joined: 2 Apr 2019

Posted: Sat Oct 17, 2020 10:38pm

That is probably the best thing to do. So complicated after December. Good luck. Camposol  is a lovely place to be. See you soon. 

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