Tips and advise for both owners and renters
Renting from the owner
On this page HolidayRentals-Abroad.com have put together some facts and
tips for you if you are looking to rent holiday home in Spain. There
are 1000's of holiday homes to rent in and the rental property can
range from villas to apartments to rustic traditional Spanish property.
Renting from a property Owner
If you are thinking of renting a holiday home in Spain there are two
types of rental contracts in Spain: Short term & Long term
Short-term rental contracts are designed for holiday homes; the
contract would have a phrase at the top “Por Temporada”,
which translates to “seasonal”
Long term carry a heading of “Vivienda” which can mean
“residence” or “home”, this contact would be
used for people wishing to stay in the country long term.
As a potential tenant, it is important that you understand the
difference between the two types of rental properties contracts as your
rights differ in each case. For example, if you are planning to stay in
Spain for a few years at least, and you sign a short-term contract for
nine months, you might find yourself looking for a new property to rent
when the contract ends.
However, if you know that you intend to stay in Spain for some time and
you sign a "Vivienda" contract, you will automatically have the right
to renew for five consecutive years. During this time, rent can only be
raised by inflation.
You might be asked to make a deposit when you rent long term, this is
in keeping with Spanish law, which permits the landlord to ask for one
month's rent for unfurnished quarters and two months' for business
space and furnished homes. To protect yourself, the deposit can be held
by a neutral third party, such as an agency or a government office.
These are called the "Consejería de la Vivienda".
If you hold a long-term rental contract and feel that you are not being
treated fairly, visit the nearest municipal consumers' office (OMIC -
Oficina Municipal de Información del Consumidor). Here you
should be able to present your case to someone knowledgeable in
consumer affairs and obtain advice. Personnel at these offices can also
help you to take complaints through the appropriate channels. To help
them help you, bring your rental contract with you and any receipts or
other documents that could be of use.
Owners renting their property out
For many people the idea of letting out
their property in Spain is attractive. It can help cover your costs but
be sure that you are aware of the local regulations and have the
necessary safeguards in place. Here are a few points to remember;
Always
ensure that there is a valid, written agreement between you the
landlord and the tenants. It is advisable to have a local legal
representative draw up the agreement for you. The agreement should make
it clear that the tenants should look after the property for you and
that they will be responsible for any damage to the contents and/or
property. In addition, clearly state who is responsible for payments
for electricity, gas and telephone etc.
If
possible, always check the credibility of the prospective tenant by
running a credit check and requesting references. Remember at the end
of the day you are letting your home to a perfect stranger and you
could be many thousands of miles away. Make sure that you keep copies
of all bills paid on the property and copies of agreements along with
any other relevant paperwork.
Leases
of urban properties in Spain are regulated by the new Urban Leases Act
of 1994 which has brought about several important changes to the old
system under the 1964 act. The new act applies not only to commercial
and domestic dwellings but also to holiday and seasonal lets. One of
the important items governed by the act, and relating to long-term
leases is the tenants rights to an early resolution of the contract
with very low penalties and the benefits of the statutory automatic
extension of the duration of the lease. If you intend to let your
property you should seek a copy of this act and ensure you have legal
advice.
For
properties let in the Canary Islands as tourist accommodation, there is
a special act (of 1995) that states a professional property agent has
to be used. The agent must hold an official license. Owners failing to
comply are subjected to heavy fines.
The
tax rate on rental income is either 25% or 35% depending on whether or
not you are deemed to be a permanent resident in Spain. What may appear
strange to us is that the tax is paid by the tenant, a deduction for
the tax is made from the rental before the net amount is passed on to
the owner. Insist on proof that the tax payment has been made on your
behalf. Any income from rent received in Spain by non-residents is
subject to a payment of a flat rate of 25%. Even if the property is not
rented, owners are still liable for the income tax, calculated on
deemed letting income at the rate of 2% of 20% of the official property
value.
Arrange
for the tenancy agreement to be drawn up by a gestor (a Spanish legal
representative). Any interest payable on a loan is not allowable
against the rental income, even though UK tax is due on the income if
you are a UK resident.
There
is a treaty with Spain that any Spanish taxes paid to be offset against
UK tax. When the property is sold and the proceeds are invested in
another principal and habitual home then no Spanish Capital Gains Tax
is payable (as long as the repurchase is within 2 years of the
disposal). Alternatively if the property is owned for more than 10
years, then the CGT liability disappears. This does not mean however,
that your liability to UK tax also disappears.
Recent changes to renting in Spain
Despite
recent efforts by Spanish governments aimed at giving fiscal incentives
to people in rented accommodation, the actual market for long-term,
good quality rented property remains relatively small compared to many
other European countries.
In 2005 the Government announced the creation of a new Agency aimed at encouraging people to rent more.
The best way of starting to look for rented accommodation in Spain is
by reading the classified sections of local newspapers or by going to
local estate agents. Some travel agents also offer deals on short-term
rentals. The disadvantage of going to an estate agent is that you will
be expected to pay them the equivalent of one months rent if they offer
you a property you like. This means that you will have to pay three
months rent on signing the contract (one month for the agency, one
month deposit and one month rent).
If you want to rent somewhere before actually arriving, try looking at
local city guides or one of the many websites listing accommodation for
rent in Spain. More and more people use the Internet to advertise
property for rent or for sale so use these sites to contact owners and
contrast prices.
info@HolidayRentals-Abroad.com.
We
are only an advertising tool for property owners and have to except
what we are told but if we find out otherwise we will investigate and
if the claims of the property owner is found to be untrue we will
remove the property from this page.
Below are some useful links to help
with finding and getting to you next holiday home.
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