Tourist Licence

Hi, it's not resorts that issue the licenses, it is the Murcian Council. Licenses are required for short holiday let's,if you are going to look for long term rentals then you will need a contract in both Spanish and English, legal help to draw this up is advised.

Your Solicitor can apply for the license, the cost for that is around 70€, that's your Solicitors time,currently I believe the licenses are still free. It takes around a week to get your license number. You are then able to rent your property,an inspection will need to happen by the authorities to receive your stamped legal document,there was a wait of about 6 months at the end of last year.

You will need to meet certain criteria and provide to a certain standard to pass the inspection. You will also need to decide how you  are going to advertise. A keyholder will need to be found so they can do the change overs,laundry,cleaning and be 'on the ground' for you. You will also be taxed on any income I think it's 24% and after Brexit,if you live in England you will no longer be able to write off any costs against the tax.

So for the amounts you receive in rental you do need to do the maths to make sure that you will make some profit, after taking out above costs plus utilities and of course general wear and tear.

Good luck, in your new venture, if you need any other info please do PM me.

Hi. Thankyou for your reply and info - really appreciated. I get that the local principality will issue the licence but a few conversations have worried my wife that it’s not guarantee that you would get one for some resorts. Really helpful advice tho and I’m sure this won’t be my last query on buying out there. Thankyou 

Apply through Murcia Turistico unless your Spanish is really good you’ll need some help…you could use QML in Los Alcazares. It takes much more than a week….you have to have an inspection visit then wait for your number . You then have to register with the Giardia Civil as all your guests must register with the police. 

As non residents you will pay 24% tax on all income with no offset expenses …you’ll have to pay a management company to manage bookings, laundry, cleaning etc…all things to consider!

I would suggest that you take a really good look at your likely business model for this.

After the cost of the licence, you may need to make potential modifications to the property to ensure it's compliant with regulations for holiday rentals - depending on the area, this can be fire doors, smoke alarms, fire blankets, etc. You also need to put together a pack for customers with all the relevant details for the property and the urbanisation (if it's on one). You will then need to pay a key-holder and a cleaner and laundry costs. If you are leaving some of your own clothes, etc, then you will need locked wardrobes or an alternative storage area; and you will need specialist insurance as a landlord.

You then need to price in utilities cost (you will have no control over how much a guest uses the air-con, for example), advertising costs, commission to whichever booking agent you use. Then factor in occupancy rate - most people will be lucky if they achieve 50% occupancy - and bear in mind that you will probably want to visit yourselves in many of the most popular periods for rentals. How much competition is there in the area?

Sorry if this all sounds negative, but best to take consider all factors before deciding...

Maybe the process has changed recently?? We have just been through the system, our number came through in a week via our Solictor, we were told from Murcia Town Hall we could start to rent whilst waiting for the inspection,which was 8 months later. 

Either way, as I said before some consideration needs to be made regarding outlay/costs versus income/use.

Hi. Really appreciate your feedback - not coming across as negative at all - it’s the reality of wanting to let out in another country. A lot of it we’ve already thought of but certainly some additional pointers. As we won’t be doing this as any kind of income as such - just trying benefit from our holiday home sitting empty for 30-40weeks of the year - I’m trying to workout if any benefit/income is outweighed by the costs. Many thanks again. Chris