Property management

Welcome to the forum Mark.

Before you set your heart on a particular property, I'd suggest a check with the Town Hall that it's likely to be granted a letting licence.

Long term let's don't require one but holiday lets do. I think there might be more information on this in the Guides section of the Forum. 

Kind regards 

Steve

Hi Mark

If you buy a property with an existing Tourist License then it can be transferred into your name on completion of the purchase, but they are rare to find.  Otherwise you will need to apply for one for the property before you can let to holiday makers.  

As well as checking the property meets the criteria for a Tourist License you need to check that the community allows new licenses to be issued and then check that the Town Hall is accepting and processing applications for a certificate of compatibility.  Without that certificate you cannot apply for your Tourist License.  It will take time to process the two stages and you cannot advertise the property until the License is obtained as the License number must be included in all forms of advertising.

Once you have your number you will need to register with the police (usually Guardia Civil be can vary in some areas) so you can register guests on arrival.

If non-resident then your tax is payable quarterly.  For EU-residents the tax is 19% after a few allowable deductions, for non-EU residents the tax is 24% on the gross rental income.  

You need to decide if you want to manage the bookings and admin yourself and use a keyholding company for check-ins and cleans (you have more control) or use an agency to handle everything which will cut into your rental income.

There is a lot of information on the forum about Tourist Licenses, so take a look.

Ensure you are using an fully independent solicitor for the purchase (not one linked to the estate agent) and put in writing to them that no money is to change hands and nothing will be signed regarding the purchase until your solicitor has done basic checks to see that the property meets Tourist License criteria and that it is possible (in principle) to obtain a License on that property.  Pay your holding deposit to your solicitor on that basis only.

Letting can provide an income from your property but it must be done properly as fines for letting without a License or not paying your tax in Spain are high.

Many thanks for the replies, much appreciated...

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