Spanish Law Changing On Rental Properties
Brits who own second homes in Spain could soon find it difficult to rent them out to holidaymakers.
Under legislation due to come into force this summer, property-owners will no longer have the right to let their property on a short-term basis to tourists. Instead all holiday lets will need to be authorised - and have a licence granted by - the local regional government, some of which aim to restrict private tourist rentals in favour of the local hotel industry.
The new law targets foreign owners in particular as holiday lets will be deemed illegal without the correct licence and approval by the local authority when advertised on-line, a popular way for non-Spanish residents to market rental homes
Richard Way of The Overseas Guides Company, said: "Rental licences, which already exist in some regions, are typically only granted to properties that meet specific health and safety conditions, which might not be achievable by many properties. One of the incentives for many British and other foreign buyers in Spain is the opportunity to pay for the upkeep of their property through rental income - without that benefit, buyers could look elsewhere for a second home, in effect making the new legislation counterproductive!"
Foreign buyers have played an important role in boosting the lacklustre Spanish property market making up 8% of all home purchases last year, according to the annual report by the College of Property Registrars.
Spanish property expert Mark Stucklin of Spanish Property Insight said the new law could put foreign nationals off buying second homes.
"Spain needs to be rolling out the red carpet to foreign investors, not putting up the ropes," he says.
"There will be arbitrary enforcement and a hotchpotch of laws across the regions which is bad news for investors."
Stucklin advises foreign nationals who own Spanish property to check the specific requirements with their local town halls.