Holiday rental and idea of running costs

Post-Brexit the viability of holiday lets has become poor: you have to get a licence which is not cheap, and they can insist on some works if the building is not to their standards. The licence also takes some time to get. Since the beginning of this year there is no tax relief on maintaining the place, and the tax levied has gone up. This is apart from the costs and taxes to buy it, and with less visitors to rent the market seems anything but bouyant.

I suggest you contact some letting agents in your chose area and get some facts and figures.

Hi Peter 

Thanks for replying, we have looked into rental taxes and we are aware how high they are at the moment. If the property only generated a small income to help towards costs it would be a bonus.

We have seen a property we like in dolode Pacheco, but need to know if we can rent out as a holiday let. We know some areas you aren’t able to do this in Spain. 

Thanks again

Julie 

Hi Julie,

In answer to your question, yes there are rentals in Dolores....but it is a quiet area and a bit off the beaten track. 

We have a place there and absolutely love it precisely because its a quiet area and a bit off the beaten track....

We do not let our place out....the little bit of income generated would be outweighed by the bother in our opinion. I budget £150/month for our running costs including community fees and annual insurance, taxes etc.

Good luck with your search.

Not sure why you want to be so far from sea. You can pick up good property for same price a few blocks from sea in Lo Pagan

Costs  the electricity  line rental us 22pm, the water line rental I think bout same 22pm  the council tax can be between 300 to 460pa,  there seems to be another gov tax about 300pa   .. Internet I use for security cameras bout 30pm  .. security company seem to charge same, insurance 25pm,   block maintenance between 50 and 300pm  depending on block..  all that's before you get a licence  for rental  :)     fabulous area lo Pagan  but I don't think you will earn any monies doing holiday rentals  but might cover your overall annual costs     Santiago De La Ribera   another nice area with a few doer upper bargains too  :)

Good luck

Austin

Thank you so much for replying, you’ve been very helpful. We will certainly have a look at this area, when it is safe and easier to travel. I have a feeling we’ll be moving our September flights again, until the time is right to fly again. It looks a very clean and picturesque area. 

Thanks again 

Julie and Andy 

Hi Austin 

Thank you for your response and we will certainly have a look at lo pagan. We do love the los alcazeras area and I don’t think lo pagan is too far from there.

Hopefully we will be able to travel soon to start looking in more detail at places and areas, but in reality I don’t think we’ll be able to fly until next year. We’ve got flights booked for September, but sadly I think we’ll move them again until cases are more under control. At least we’ll have more time to add to our budget though 😀

Thanks again

Julie and Andy 

Lots of good advice here for you. As non residencia living in UK and having property in Spain much has changed in terms of renting out your property in Spain. The income is now linked to Spanish tax laws and evasion of any kind is now immediately fraud under Spanish law. Recent cases of those caught by the roving inspectors lead to court where fines have rarely  been less than 120,000 euro to the owners and 30,000 euro to those using the unlicenced property. In some case courts have also imposed prison sentence plus fines. All rented properties have to clearly show a licence plate on the properties front wall with their rental licence number. You are also legally responsible for registering all guest in and out of your property with the local policia who often spot check occupied rental properties. Yes the licence period is strict and arduous with sometimes multiple inspection if they find quite minimal things not to the standards. So it is now essential to rent legally and fully licenced or suffer potential consequences which has bankrupted some of those caught.  As noted previously you could claim back as costs all the incurred overheads of renting your property but, this is also now illegal, and tax on income has risen from around 18 per cent to 23/24 per cent.

Hope this all help - pleased to answer any other questions?

Pre-Brexit some friends decided to rent their Spanish house for the periods they were in the UK. The rules and regs were much less onerous than now, but they found the aggravation of having to secure their personal and private stuff every time they went, plus the inevitable things moved and /or broken put them off. With the changes in tax rules they have just packed it in.

If you would be comfortable with renting your UK home out then you may be ok with doing it here, but personally I like to know that only I have slept in my bed and drunk from my cup!

It's for those very reasons you mention that we packed in renting our place out about 10 years ago.