Overseas Property Investors Being Fined Under New Spanish Legislation
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Property investors in Spain who are not registered within their relevant local tourism authority and let holiday properties to tourists could face fines of up to €30,000 under new legislation.
The Spanish authorities are carrying out thoroughly inspections, inspecting paperwork and even examining websites in an attempt to eradicate what they regard as unregistered letting.
Some cases were even reported by Spanish neighbours, namely holiday properties in the Balearic Islands and on the Andalucía coast.
A large number of overseas property investors declared they bought their second homes for personal use, though, after advertising their Spanish properties on the internet for holiday rental were fully booked for most of the year, generating an average of €1,400 per week extra income.
The law clearly underlines that if a property is let primarily to tourists, should be registered for holiday rentals.
A property consultant based in Ibiza, Gary Davidson, said:
Given the fact that buy-to-let mortgages are more readily available nowadays, many expatriates have been seduced into investing in property in Spain with rental income from holidaymakers paying their mortgage and providing them with an additional income.
Despite this, most overseas property investors in Spain don’t know that they require licensing from the local tourist authorities to rent their property to tourists until they’re hit with legal action.
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