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Tourist rental licence required - Page 10

Davebev1

Posted: Mon Jul 25, 2022 6:11pm

Davebev1

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Posts: 1574

2227 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Mon Jul 25, 2022 6:11pm

Maria Whitby wrote on Mon Jul 25, 2022 5:55pm:

Would you please keep me informed for when this happens. I have a licence in Murcia. But I was in for a very unpleasant surprise when I submitted my taxes of tourist income. No profit whatsoever because Brits are not entitled to claim expenses versus the earnings, which meant the 24% taxable was ...

...basically all my profit. There were only two bookings, but plenty of overheads, utility bills etc.

It is all third country residents, regardless of nationality, that are taxed at 24% on gross rental.  It isn't because you are British but because you live outside the EU.  A Brit living in an EU country, ie France or ROI, would be taxed at 19% of net income, equally a Spaniard living in the UK would be taxed at the higher rate.

Maria Whitby

Posted: Mon Jul 25, 2022 8:00pm

Posts: 24

11 helpful points

Location: Algorfa

Joined: 11 Oct 2021

Posted: Mon Jul 25, 2022 8:00pm

Davebev1 wrote on Mon Jul 25, 2022 6:11pm:

It is all third country residents, regardless of nationality, that are taxed at 24% on gross rental.  It isn't because you are British but because you live outside the EU.  A Brit living in an EU country, ie France or ROI, would be taxed at 19% of net income, equally a Spaniard living i...

...n the UK would be taxed at the higher rate.

No that is not the case. Anyone living legally in U.K. pays the same rate, be it business, employed or self employed. The tax rates are universal here. In fact foreigners who invest here, but are non residents have even more tax allowances, then the locals. Because they don’t use the schools and hospitals. One has to accept that Spain is different, and I respect and abide the law of the country. The alternative would be sell up. But I love Spain.

Davebev1

Posted: Mon Jul 25, 2022 8:15pm

Davebev1

Legendary helpful member

Posts: 1574

2227 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Mon Jul 25, 2022 8:15pm

Maria Whitby wrote on Mon Jul 25, 2022 8:00pm:

No that is not the case. Anyone living legally in U.K. pays the same rate, be it business, employed or self employed. The tax rates are universal here. In fact foreigners who invest here, but are non residents have even more tax allowances, then the locals. Because they don’t use the schools an...

...d hospitals. One has to accept that Spain is different, and I respect and abide the law of the country. The alternative would be sell up. But I love Spain.

My info was on Spain not UK.

FRCAMP

Posted: Mon Jul 3, 2023 3:44pm

Posts: 1

Location: Algorfa

Joined: 3 Jul 2023

Posted: Mon Jul 3, 2023 3:44pm

Hi everybody,

how is the situation today? Is Algorfa's town hall still refusing to issue the Certificate of Compatibility? We have recently bougth something on La Finca, indicating to both the building company, the agent and the lawyers that we want to rent it out. All of them indicated that renting out our place is no issue, so this topic is a bit worrying, to be honest.

happy to hear any updates!

Kind regards,

Fréderic

Davebev1

Posted: Mon Jul 3, 2023 4:11pm

Davebev1

Legendary helpful member

Posts: 1574

2227 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Mon Jul 3, 2023 4:11pm

FRCAMP wrote on Mon Jul 3, 2023 3:44pm:

Hi everybody,

how is the situation today? Is Algorfa's town hall still refusing to issue the Certificate of Compatibility? We have recently bougth something on La Finca, indicating to both the building company, the agent and the lawyers that we want to rent it out. All of them indicated that renting out o...

...ur place is no issue, so this topic is a bit worrying, to be honest.

happy to hear any updates!

Kind regards,

Fréderic

Last I heard, Algorfa Town Hall stated they have no plans to change their policy about Tourist Licenses.  If you specified in writing to your solicitor that you would be intending to do holiday letting then they should have done checks for viability first, all local firms are aware (or should be) of the situation.  The Certificates were introduced into the License application process back in July 2018, and Algorfa Town Hall have never issued one, so the only properties with a TL are those which applied prior to July 2018.  All estate agents should be aware of the local position regarding Licenses for holiday letting on properties they are selling and should say if a property cannot meet that requirement if you have made it clear that is your plan, in fact if that is a stated criteria they shouldn't even show properties that cannot obtain a License.  Your solicitor is the one works for you and is responsible for advising you, they are the legally qualified ones and so they certainly should have given you correct information and full legal advice regarding holiday letting and restrictions/requirements. 

You would be able to do residential letting as no license required, but obviously that rather defeats the idea of having a holiday home.  

I would go back to your solicitors and demand an explanation.  Certainly complain to the estate agents too, but as the estate agent's client is the seller (ie not you!) they will probably just claim they didn't know about your plans.  

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