Where Does the Future Lie for Holiday Rentals in Spain?
Investors who have put their money into continental holiday homes will be hoping a proposed new law in Spain does not come to pass. It is believed, according to new reports, that authorities in the Iberian nation are looking to bring in a regulatory change that would see it become illegal to let out properties on a private basis.
While British investors would still be able to buy and sell for capital gains without a licence - which is about to become a whole lot more of an attractive prospect, following the news that the economy in Spain is starting to pick up pace and prices are recovering - it would take away a revenue stream from them unless they follow licensing laws. Unregulated rentals of holiday homes are a big reason for many people buying in nations like France, Italy and Spain, because they can see a large income throughout the year, and particularly during the holiday season.
But the government wants to enact a change that would mean holidaymakers are not allowed to privately rent villas and other properties, instead having to book through one of the bigger travel operators or regulated landlords who are operating privately. It is thought that moves are afoot to try to push the law change through for next spring, meaning that people will need to carefully consider whether or not they want to invest their money in the property market in Spain.
The Olive Press reports that there are currently more than a million homes in Spain that are owned by British investors. It said that while there are many that are inhabited year-round by expatriates who have made the move from Britain, there are still a large number of holiday homes, which could number in the hundreds of thousands. It would mean needing to pay for a licence in order to keep income levels up for British investors, although it is not yet known how much this would cost.
Changes would make letting properties in the nation a little more complicated as well, as Brits would need to be contactable 24 hours a day to deal with issues, as well as having regular safety checks throughout the year to make sure their home is kept to a high standard.
While British investors would still be able to buy and sell for capital gains without a licence - which is about to become a whole lot more of an attractive prospect, following the news that the economy in Spain is starting to pick up pace and prices are recovering - it would take away a revenue stream from them unless they follow licensing laws. Unregulated rentals of holiday homes are a big reason for many people buying in nations like France, Italy and Spain, because they can see a large income throughout the year, and particularly during the holiday season.
But the government wants to enact a change that would mean holidaymakers are not allowed to privately rent villas and other properties, instead having to book through one of the bigger travel operators or regulated landlords who are operating privately. It is thought that moves are afoot to try to push the law change through for next spring, meaning that people will need to carefully consider whether or not they want to invest their money in the property market in Spain.
The Olive Press reports that there are currently more than a million homes in Spain that are owned by British investors. It said that while there are many that are inhabited year-round by expatriates who have made the move from Britain, there are still a large number of holiday homes, which could number in the hundreds of thousands. It would mean needing to pay for a licence in order to keep income levels up for British investors, although it is not yet known how much this would cost.
Changes would make letting properties in the nation a little more complicated as well, as Brits would need to be contactable 24 hours a day to deal with issues, as well as having regular safety checks throughout the year to make sure their home is kept to a high standard.
PUBLISHED : 30TH JANUARY 2014
