Spanish Holiday rentals as Homes for Touristic Use in Andalucía. Let’s take a look into the future
Are you the owner of a property in Malaga, Benalmádena, Fuengirola, Mijas, Marbella, Estepona, Sotogrande or any other town along the Mediterranean coast and you rent it out or you are thinking of renting it out as a holiday home?
Then you might have heard of rumours that there is a law in Spain that obliges the owner to comply with a series of requirements and some additional measures in order to rent it out.
In fact this regional – Spanish law does not exist yet, but the legislative bodies of Andalucía’s regional government, or the so known “Junta de Andalucía”, is studying and debating the draft regulations. The definitive version and subsequent approval is expected to be ready by the end of 2014.
It all started with the modifications made to the current (state) Urban Leases Act that was modified by means of the Spanish Law 4/2013, of4 June, on measures to promote and increase the flexibility of the residential rental market in Spain. Said law modifies certain provisions of the current Urban Leases Act, amongst others article 5. This article determines to which kind of leases this law is considered not to be applicable. Specifically those stated in section e) are not included: The temporary lease of the total use of a furnished and equipped property for immediate use, commercialized and promoted through tourism channels with profit-making purposes and subject to a specific regime from the sector-based legislation.
The law leads us to a first conclusion: as long as this specific regime has not been approved, this kind of holiday renting will remain regulated by the provisions of the Urban renting Act as well as by the provisions of the Law on Leases of non-residential uses. In accordance with article 3, section 2 of this law: Especially the leases of Spanish properties for seasonal use, either for the summer or any other season, will be considered non-residential use leases.
Therefore, it shall not be required for the time being to fulfil any “special” conditions or requirements to rent out a house as holiday home in Spain. But time goes by and as said before, sooner or later this law might be approved and might come into force. READ MORE……
Steps to take into account at the time of the purchase of a property in Spain (buying guide):
1. Seek the property that suit with your dreams and economic conditions.
2. Consult with pertinent property agents and obtain advice on the property of your dreams.
2. Prior to make a down payment, consult with your Lawyer who will advise on the legal status of the property and all the steps to be followed in the process of buying your home.
4. Duly advised by your lawyer in Spain, book your property with settlement of a deposit and signing a private contract.
5. Application for your Non-Residence Certificate and NIE document, for any action you make in Spain with financial implications.
6. Having obtained your NIE certification, please sign up to the Spanish tax authorities and obtain your digital certificate, which will facilitate your actions with the Inland Revenue.
7. Open a bank account in Spain for future direct debits supplies on the purchased property.
8. Grant the Purchase Title Deed. Following the terms of the Private Contract or when agreed with the vendor, attend the Notary meeting to grant the Purchase Title Deed, where you become the owner of your dream home. At this stage, in the presence of the Spanish Notary, you pay the price of the sale and get the keys of your new home. But the process does not end here.
9. Once, granted the Purchase Title Deed, is time to settle the taxes and register the property at the Land Registry where the home is located.
10. Notify your Town Hall, that you are the new owner of the property for the purposes of settlement the Plusvalia tax.
11. Registration at the Cadastral Office.
12. Notification to Community of owners that you are the new owner of your home.
13. Contracting the different supplies on the property with direct debit on on your Spanish bank (electricity, water , telephone , gas , alarm,….)
14. Enjoy your new property in Spain and Congratulations!
The whole process indicated above, can be a nuisance for you. Arcos & Lamers Asociados will guide you in this process for the purchase of your home is really a dream. Avoid complications and contact professionals of this multilingual law firm in Spain now!
License of First Occupation in Spain
When a client instructs our law firm in Marbella to study the legal situation of a property they would like to acquire, one of the essential documents to retrieve is the Spanish Licence of First Occupation (LFO) corresponding to this property.
The Spanish LFO is a document usually issued by municipal authorities (municipalities). It aims to ensure that the building in question complies with the conditions imposed by the (not expired) building license permission, which would have been granted at the commencement of the works and the conformity of these works with the technical project that was the basis for granting the building license. In addition, with the LFO, we may confirm that the building’s construction complies with the appropriate health and safety standards.
The essential subject of this license is the initial occupation and use of buildings as well as the elements adjacent to them (such as storage rooms and garages, which are an integral part of the whole building). The pertinent LFO in Spain is also required for those works of extension, modification and rehabilitation involving a technical project and a necessary perusal of health and safety by the municipal technicians.
The Licence of First Occupation is necessary for the Spanish declaration of the new building titled, which together with the final building certificate issued by the architect, will be required for execution of the deed. Read more..