Having friends and family to stay

julietony wrote on Fri Mar 6, 2020 7:59am:

HI Grahame, I would have done that, but unless I am replying to someone I cant work out how to send a PM.!☺ 

julietony wrote on Thu Mar 5, 2020 10:04pm:

Hi All,

I am hoping that maybe Davebev can answer this for me- we have an apartment and visit only about three times a year at present . Given the licensing laws, how do we prove, if asked, that the people in our apartment when we are not there are our friends and family? Do we still need to register any...

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... guests at the local police station, and do we, as has been suggested to us, have to register ourselves? Also would any guest be able to contribute towards the electric bill to cover the aircon, for example?  We wouldn’t be charging actual rent but would need them to cover costs.

Many thanks

jukie

jimtaylor wrote on Fri Mar 6, 2020 4:45pm:

The easiest thing to do is to give your guests a letter stating that they are friends or family and are staying in your property, without charge, with your permission.

You don't need to register yourselves or your guests with the guardia.

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By law, you aren't allowed to make any charge for the property use without a tourist license.

If your guests just happened to cross your palm with silver when they get home, how would the authorities find out about it?

julietony wrote on Thu Mar 5, 2020 10:04pm:

Hi All,

I am hoping that maybe Davebev can answer this for me- we have an apartment and visit only about three times a year at present . Given the licensing laws, how do we prove, if asked, that the people in our apartment when we are not there are our friends and family? Do we still need to register any...

Read more...

... guests at the local police station, and do we, as has been suggested to us, have to register ourselves? Also would any guest be able to contribute towards the electric bill to cover the aircon, for example?  We wouldn’t be charging actual rent but would need them to cover costs.

Many thanks

jukie

David2816 wrote on Wed Mar 11, 2020 10:27am:

We have had a home in Algorfa for almost 5 years and it is only used by Bev and I about 5 times per year and my family about 2 times per year. We keep our airline boarding passes to prove that we have used the home and keep records of any family use ( dates etc.) We pay our non resident taxes and...

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... have never been approached by the Spanish government regarding usage of the property although i hear that they look at electricity use to determine how often the property is in use.

My advice would be just to keep basic records of your time in your property and also names and flight numbers of any friends or family use. I believe that you only get taxed on any profit from letting and that it is OK to ask for a contribution to pay for energy use etc.

Davebev1 wrote on Wed Mar 11, 2020 11:04am:

Brexit means that tax is on the GROSS at 24% after transition for British residents - profit or no profit, no allowances given.  However, you are still required to file a tax return even if you make a loss, not just if you consider you have made a profit.  The requirement is to file a t...

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...ax return every quarter if you are a non-resident and receiving rental for your property, whether you made a profit or a loss is irrelevant to the need to file the return.  But obviously if the property is unlicensed then you wont file a tax return as it's an illegal rental!

Technically if you receive a penny/cent for the use of your property it is renting it.  As Jim said, impossible to trace a small cash payment made direct in the UK but it is still a payment for use of the house.  If questioned by the police (ie a neighbour reports someone being there), and the guests state they paid you £50 then you can be fined for unlicensed letting.

People often overlook the insurance side of things.  If other people are staying in your house then double-check the small-print of your policy.  Insurance companies are known to wriggle out of payouts whenever possible, so you should ensure your holiday home policy covers use by other people when you are not there with them.  If they find out you have received a payment then they wont pay out if you do not have the correct cover, ie holiday let cover - theft, damage, fire, public liability etc., whatever - they will not pay leaving you picking up the cost.

I know people will say this is taking things to the extreme, people have got away for years doing this, and will in many cases continue to get away with doing it.  but sooner or later some will be caught out. So you need to accept that what you are doing could leave you open to being heavily fined and totally uninsured.  If you want to take that risk, then at least you have chosen to do so knowing the risks, your choice.  However, please do not tell others that this is ok without explaining the risk they are taking - the law is clear.