Letting Your Holiday Home in Spain
Letting Holiday Homes in Spain
For those purchasers of property in Spain who wish to cover their mortgages or guarantee an additional income, letting your holiday home is an excellent option. Long term rentals can ensure a year round income, whilst holiday letting gives owners top dollar during the summer months.
As every year, the number of vacant rooms in hotels increase, and hoteliers on the Costa Blanca are complaining about the ever increasing number of private owners renting their holiday homes. This situation is forcing the Inland Revenue and other local authorities to enter measures to stop the illegal trading.
The legal status is as follows: If you are letting your home in Spain to holiday makers, you need to register your property with the Ministerio de Turismo (Ministry of Tourism) to ensure your property meets the minimum health and safety standards. At the same time, your records will be entered into the system and taxes (35% as non resident) will be required to be paid on the earnings produced for its rental. Understand your tax responsibilties when letting your property in Spain.
Non resident owners of property in Spain do often conduct their business through legal management companies by allowing their “friends” to continue enjoying holidays in their private homes in Spain, whilst knowing that all the necessary services – including maintenance, changeover cleans, or damage repairs – on your property, are being carried out on your behalf. If you do decide to ‘go it alone’, you must check out any prospective tenants by getting references or talking to a previous landlord, and be sure to take out a proper insurance for rental property. It is also advisable to seek legal advice before accepting tenants.
People are more likely to look after your property if they feel you have gone to a lot of trouble to make them feel comfortable and welcome. Letting holiday homes in Spain is a very competitive business and each owner must ensure their property is up to scratch for all incoming guests. A property management company based locally can do all that for you. If your renters have a fantastic holiday, this will lead to repeat bookings, and free word of mouth advertising as they promote your property to their friends.
Category : Property News