May 31, 2008

Tax & Tourist Authorities - Spain

This is a warning to all Spanish holiday home owners. Second home owners letting out property have to be registered with Spanish tax and tourism authorities. Failure to do so may cost dearly.
This is from an article at HomesWorldWide. We do not wish to break copyrights of HomesWorldWide so we acknowledge their website and we quote :

"Those people who own holiday homes in Spain to rent out to tourists may be breaking the law.

According to reports on the website thinkSPAIN, tourism and tax authorities are clamping down on unregistered lets and owners face fines of up to €30,000 if they are caught.

All apartments and villas which are let out to tourists should be registered with the tourism authorities, but at the moment conditions are extremely stringent.

Property owners could also face the wrath of the Spanish tax authorities if they are living in Spain and are not declaring rental earnings.

This comes at a time when more and more British home owners in Spain are deciding to rent out their properties in order to offset their losses. Many have opted to take out buy-to-let mortgages so their rental income covers the mortgage payments and provides them with additional income.

But a growing number of holiday home owners are advertising their properties on websites unaware they need a licence from the tourist authorities to do so, and now face heavy fines as a consequence."

You are advised to check with Spanish Tax and local tourist office regards letting out of your second home.