New Decree Signals Change For Private Rentals

For the last three years, owners of holiday-let apartments have been holding their breath as the Junta de Andalucia attempt to come up with a new decree governing the renting of private apartments to holiday makers.

The decree was finalised and finally published late last week bringing the wait to an end.

Regulation of the industry on the Costa del Sol is lagging behind as other parts of Spain have had rules in place for many years, including Catalonia where the rules came into force in 2014.

You can read the official document in Spanish on the Junta de Andalucia website.

Does my property qualify as ‘holiday rental accommodation’?

If you own a private residential property in a residential zone and you regularly offer it for short-term (holiday) rentals for financial reward and you promote it via any recognised tourism channel then yes, this applies to you. Recognised tourism channels include, but are not limited to, travel agencies, third-party tourism promotors, or any channel that includes the option to make a reservation.

If any of the following applies to you then don’t worry, your property is excluded:

  • Properties that are transferred without payment or financial reward.
  • If the rental contract lasts for more than two months continuously by the same tenant (long-term rental).
  • Properties in rural areas. These properties are already covered by article 48 of Law 13/2011 of December 23rd and Decree number 20/2002, dated January 29th, Tourism in Rural Areas and Active Tourism.
  • Multiple properties (three or more) with the same owner, located in the same building, or in neighbouring buildings, less than 1km from each other. These will be classed as Touristic Apartments and will be subject to Decree 194/2010 of April 20.

Can I rent my property for tourism purposes?

If renting the entire property, the maximum capacity is restricted only by the license of occupation but may not exceed 15 people with a maximum of four people per room.

If renting a single room, the owner must also reside in the property, and the maximum capacity will also be four people per room, with a maximum of six people.

My property qualifies and I do rent it our seasonally. What do I need to do?

This is quite a list so sit comfortably and read on!

  1. An occupational license is required and your property must comply with technical conditions and quality requirements for housing.
  2. The property must be sufficiently equipped and furnished to enable immediate use.
  3. Ventilation, either via direct ventilation or via a patio must be in place as must the ability to provide window shading either by darkened windows, blinds or curtains.
  4. Fitted air-conditioning must be in place in all bedrooms and lounge areas. For rentals from May to September a cooling system must be available. For rentals from October to April a heating system must be available. If your property is listed as of “cultural interest” or building/modification work is prohibited, then your property is exempt from this item.
  5. Properties must contain a fully stocked medical/first aid kit.
  6. Information about local amenities must be made available for tenants. These should include details of local shops, restaurants, parking, medical facilities and public transport, etc.
  7. A complaints/claims book must be made available to tenants.
  8. Properties must be cleaned before check-in and after check out of clients.
  9. Bedding, towels and other household good must be provided, along with spares.
  10. A contact number should be available for tenants to answer questions or resolve issues regarding the rental.
  11. Information/instructions must be provided for all electrical appliances.
  12. Rules and regulations regarding the property and/or the urbanisation must be provided. These include rules regarding smoking, music, pool access etc.

 Ok, I’ve got that. How do I register?

As the owner of the property it is your responsibility to ensure your property is in-line with the new requirements and is registered with the authorities.

To do this you must submit a statement to the Ministry for Tourism confirming the property is compliant. Once submitted you can accept clients immediately. The minimum details you are required to submit are:

  • Property Details: Catastral Number and Maximum capacity (as stated on the license of occupation)
  • Your details: Whether you are an Individual or a Company, along with contact information.

Once you have registered you will receive a registration number which must be included on all promotional/advertising material.

The registry must then be informed of all rental activity in your property. This includes details of commencement and cessation of rentals.

How do I go about my rental business now?

There is now a long list of things you now have to do to legally handle your rental clients:

  1. All of your clients must be presented with a document, by way of contract, that provides your details, the registration number provided by the Registry of Tourism, the tenants details along with the details of their stay, including the price, and a contact number.
  2. All of your tenants must provide you with identification to enable you to register details of their stay. This brings private rentals in-line with the registry process when staying in any other recognised hotel or similar.
  3. You must agree arrival and departure times with your tenants prior to their arrival. If you do not, the arrival time will be assumed to be 16:00 and departure time will be 12:00.
  4. At the point of check-in, the clients must be provided with keys or access cards to allow them entry to all points of the property/urbanisation. You should also provide details of any rules regarding the community/urbanisation.
  5. Instructions for all the appliances within the property must also be made available.
  6. When advertising your property, it must be priced per night and the price must include utilities (water, electricity, cleaning and bedding). There is no restriction on the number of nights.
  7. Final price, dates etc must be provided in writing before confirmation of any booking. If an advance payment is made, a written receipt must be provided for the tenant.
  8. You may request an advance payment as a deposit up to a maximum of 30% of the total rental cost, unless a different amount is previously agreed with the tenant.

Cancellation

  • If the tenant cancels the booking within 10 days of the commencement of the rental, then the owner may retain the deposit in full.
  • If the tenant cancels the booking more than 10 days before the commencement of the rental, then the owner may retain up to 50% of the deposit.
  • If the owner cancels the booking more than 10 days before the commencement of the rental the tenant must receive a refund of the entire deposit.
  • If the owner cancels the booking within 10 days before the commencement of the rental the tenant must compensate the tenant with up to 30% of the contracted price of the entire stay.

Force Majeure

If the rental is cancelled by either party for substantiated reason or force majeure, no compensation will be due to either side.

 Deadline and Sanctions

Don’t panic! The decree was only published last week so you have a little time to prepare. Registration will open three months from publication, which was Feb 11th. This takes us to May 11th, 2016. From this date we believe you will have three months in which to register your property. You then have 12 months to ensure your property is fully compliant.

If you rent out your property without registering or before your property is fully compliant then you are liable to be fined. Maximum fines are stated as 180,000€.

Property Sales increase in Spain

Property Sales increase in SpainThe Spanish property market because of the rise in sales of residential properties grew by eight per cent in June 2014 compared to last year.

Sales statistics just released from the National Statistics Institute, shows that Spain has seen a year on year increase in property sales for four consecutive months, ending a ten month duration of year on year declines.

Valencia boasts the largest increase of house sales per 100 thousand people, followed closely by the Canary and Balearic Islands.

In relation to this, Madrid performs the highest, with a 30.4 per cent increase. Extremadura, with 25.7 per cent, and Navarra, at 19.3 per cent, placed at second and third.

There has been very positive movement on the Costa del Sol this year. to put it into perspective: there have been four new housing developments within the Costa in 2013 compared with none throughout the previous 3 years. Potential developers need to stay grounded, however, as thirty per cent of recent homes on the Costa are still to be sold.

An average two-bedroom apartment on the Costa del Sol can go for €196,956, while a family home comes in at €393,520.

Experts predict that Spanish property markets is likely to stabilise towards latter part of the year.

More positive indicators for the Costa del Sol

Marbella is not the only large town to be influenced by the huge influx of tourists in 2014. With an estimated 10 billion euros being created in 2014 across Andalucia other councils are also making improvements which is great news for the construction industry.

The influx of tourism to Marbella this year has been so impressive that the town has been added to the small list of areas that is permitted to now start opening shops on Sundays, which is not only great news for the local residents but also for tourists.

In light of the pending local elections which are less than a year away now, one of the most eagerly anticipated projects of this year is due to start after the Summer in Estepona. The so-called Grand Boulevard is a major project which will transform Estepona and the surrounding area and will consist of a new shopping centre, more tourism related attractions and a new recreational centre. This privately funded project has a price tag of 30 million Euros, with the local council also financing a multi-millon euro botanical park boasting the biggest orchid collection in Europe.

Elsewhere on the Costa del Sol there is due to be other development of museums, tourist attractions, theatres, and infrastructure in Velez Malaga, Malaga City, Benalmádena, Mijas (old town), Rincón de la Victoria, Alharurin del Grande, Cartama and Fuengirola. Not only will all of the projects across all of these areas on the Costa del Sol bring in more tourists, but it will boost the economy and reduce unemployment greatly.

Costa del Sol leading the way for Property Recovery

A recent study has provided evidence that there has been an increase in house prices in Marbella and Manilva. Off-plan new developments seem to have reached their minimum prices and indications are now showing a rise due to foreigners.

Two areas in Spain are showing definite signs of property recovery, Costa del Sol and Costa Blanca. The study that was undertaken gathered information from 60 coastal regions of Southern Spain and demonstrated due to financial establishments lowering prices that property was now selling faster.

Its still early days in respect of the Spanish construction industry however areas in the Costa del Sol and Costa Blanca are showing very positive signs. New constructions in the Estepona and Marbella area, which have been built with the foreign market in mind are building good interest.

The general consensus is that property prices are now slowing however this is only in certain areas of Southern Spain. Prices on the Costa del Sol for example have dropped to their lowest averaging a 1.1% drop in the first quarter of 2013 and 2014.

It is thought that property sales may increase as much as 25% this year in Marbella due to demand by foreigners.

Frontline Golf Apartment with Amazing Views to the Golf Course

Front-line Golf Apartment with Amazing Views to the Golf Course – Ref: MFSA220

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Price: 455,000€

This contemporary ground-floor apartment has an incomparable setting overlooking the fifth tee of the golf course of Los Flamingos, boasting views to the magnificent Villa Padierna Hotel & Spa, natural lake and Mediterranean Sea.
Designed using a fusion of Mediterranean and contemporary style, this ground-floor has nice terrace and garden that is ideal for al fresco dining. Also it has an internal patio area of 36 m2 with possibility to integrate it in the apartment.

All rooms are spacious with both bedrooms ensuite and a guest toilet. The kitchen is open plan where you can enjoy the stunning views over the golf, sea and mountain.The living room has his fireplace that gives a very cozy feeling.
Two inviting communal swimming pools with decked areas, surrounded by aromatic, landscaped gardens, provide the perfect haven for relaxation.

View full property details and more photos

For more information or to arrange a viewing of this property please contact us using the details below.

Tel: +34 952 907 386 | Mov: 627 979 440
Property For Sale in Marbella
info@marbella-resales.com

thecurrentmoment

As the Eurozone crisis deepens, some new ideas are emerging. Some have been aired for a while but are only beginning to be taken seriously. In this post, The Current Moment considers the issue of Eurobonds. In future posts, we will consider some of the other solutions being suggested, such as the idea of a banking union, the plans for which have been recently floated by the European Commission.

 

In a continued deepening of the Eurozone crisis, attention is focusing on Spain. Rather than investing in production during the boom years, bank capital in Spain was mainly channelled into property development. As the bottom fell out of the property market, Spanish banks have been left with worthless loans on their balance sheets. The regionalized nature of its banking system has made these problems less transparent than elsewhere and the scale of the problem has only recently emerged. Even now…

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Aifos – you’re fired!

Lord Suagr
Lord Sugar is “running out of patience”

Lord Sugar has now been waiting three years to finalise a deal to by the Byblos Hotel in Mijas and says he is running out of patience.

The luxury hotel, which has hosted such celebrities as Princess Diana and the Rolling Stones, closed it’s doors in May 2010 after running for almost 25 years.

The Apprentice star and business man paid 1.5 million euros for the hotel’s spa and tennis courts at auction in 2009 where he was the only bidder. This was the third auction held following two previous attempts which failed to find a buyer.

Sugar also offered the owners, Aifos, just under 1.5 million euros for the hotel plot and according to Spanish law he should have won if another bidder was not found and his bid is the highest.

Sugar’s was the only bid received and the hotel should have been added to his property portfolio but he claims he is being hindered at every step.

“I just want an end to the situation where Aifos challenges every court ruling,” he told a Spanish newspaper.

The Lord says he will create employment when he refurbishes and reopens the five-star hotel. The hotel is famous along the coast and abroad and he wants to bring it back to life.

Aifos has lodged at least 10 appeals against decisions by Fuengirola courts despite the bid from Amsprop being legal and the highest.

“Last March the court ruled in my favour, but Aifos appealed in April. My hands are tied, and who knows for how long,” he was reported as saying in Diario Sur.

“We might have the rest but it would be senseless to open the spa without the hotel,” he added.

So far the sale has cost him around eight million euros and in the meantime the hotel is lying empty.

Banesto net profit down 88%

Banesto
Banesto announce 88% fall in profits

As the Spanish banks announce their Q1 results Banesto have started the ball rolling with an 88% fall in profit.

The bank, controlled by Santander, reported a fall of 88% to 20.2 million euros in the first quarter of 2012, compared to 170 million in the same period last year.

Banesto said the results could be attributed to extra provisions set aside to cover bad property loans, provisions that were demanded by Mariano Rajoy’s new centre-right government, which took power last year, as part of efforts to clean up the banks’ balance sheets.

Banesto say they have 475 million euros set aside in the first quarter, which amounts to almost 50% of the amount needed to cover the whole year.

The bank have made some 365 million euros partly from the sale of shareholdings and loan assets. Without this the bank would have recorded a loss. A 4 million euro tax credit applied to the banks net profit also helped to prevent a loss.

Spanish banks have been curbing their lending of late and Banesto say their total lending fell 8.3% in Q1, as well as customer deposits which dropped 10%, the bank reported.

“The Spanish economy needs to de-leverage and the de-leveraging needs to be seen in the Spanish banks’ balance sheets,” chief executive José Antonio Garcia Cantera said, adding “We think that is going to continue for quite a while.”

Mr Cantera said the bank had sold more than 1,500 homes in March “… at an average discount that was less than the provisioning rate of 45 per cent applied to the assets.”

“That demonstrates that at a certain price there is significant demand for housing in Spain.”

Taxed by location

The amount of income tax paid by families in Spain can differ by as much as €3,500 per year depending on where they live, according to a report by the tax consultants’ association (REAF).

The report says that the differences can be explained by differing rates and allowances applied by each autonomous region.

For example, a couple, with a toddler and a baby, with a mortgage and annual income below €43,000 would be expected to pay €3,697.33 in income tax (IRPF), if they lived in Extremadura, Asturias or Aragon.

However, if they lived in the autonomous region of Castilla y Leon the tax would be significantly lower at €249.35, almost €3,599 less. This is because the region provides tax allowances for children and help with childcare costs.

Many taxes have been raised since the crisis began including income tax and wealth tax. Valenti Pich, president of Spain’s Professional Association of Economists said “Above all, other taxes have either been created or have been increased, like those on legal health transactions and tourists occupancy”.

The national governments decision to raise income tax left the autonomous regions with little room for further increases. Regions like Madrid or La Rioja had lower rates than those applied in 2010 meaning they have more scope to apply regional increases, bringing them more in line with the remaining autonomous regions.

Some regions applied a 56% income tax on incomes over €300,000, one of the highest rates in Europe, only beaten in Denmark and Sweden. In some instances an income of €60,000 was liable to 47% tax, again, one of the highest rates in Europe.

Paying more rent in January

Rental Costs Increase
Paying more?

The National Statistics Institute (INE) have released figures showing you are likely to be paying more rent now compared to  the same time last year.

According to the figures the average rental cost in Spain increased by 0.8% in January, compared to the same month in 2011.

This increase is 1.2 points under the overall CPI, which was at 2% at the start of this year.

Only two regions saw rental costs come down – Navarra and Murcia – both falling by 0.4%. Andalucía saw an increase of 1.1%, slightly lower than Catalonia and Asturias who both saw an increase of 1.3%. The largest increase was seen in the Basque Country where rents increased by 1.6%.

Regarding costs for house maintenance prices rose 1.6% year-on-year, four percent less than the overall CPI, and remained stable in December 2011, El Mundo reported.