General info please 😊 - Introduce yourselves in Monóvar - Monóvar forum - Costa Blanca forum in the Alicante province of Spain
Costa Blanca Building Specialists
Espana Dream Properties
ASSSA Insurance
Airport Service Taxi Mil Palmeras  Torre de la Horadada
Gran Alacant Insurances
Jennifer Cunningham Insurances SL
Expat Services
POSITIVE BELIEFS
Gentlevan Removals
Blacktower Financial Management
James Spanish School
interior building work
AA Free English TV
Thy Will Be Done
Car Key Solutions

Join the Monóvar forum

Join the Monóvar forumMy name's Alex and this is my website all about Monóvar in Spain. Register now for free to talk about Introduce yourselves in Monóvar and much more!

General info please 😊 - Page 3

KalMal

Posted: Thu Nov 5, 2020 6:12pm

KalMal

Original Poster

Posts: 13

1 helpful points

Location: Monóvar

Joined: 2 Nov 2020

Posted: Thu Nov 5, 2020 6:12pm

KalMal wrote on Thu Nov 5, 2020 6:09pm:

I don't want to get old thinking I wished I'd done it! Lol.

Yes I had thought of that as if it is we manage to do a holiday rental that will a job/income. I also presume any income from the UK will need to be declared too.

I definitely want to make sure everything is all above board. I think by keeping g a rental back here in the UK at least if its not what we hoped it would be we can just come back. Fingers crossed that won't happen.

Also I'm more than happy to pay my taxes its is what it is. More tax than UK but loads more sunshine 🌞 do me!! 😄

Kevman

Posted: Mon Nov 9, 2020 11:12pm

Kevman

Helpful member

Posts: 227

128 helpful points

Location: Orba

Joined: 10 Nov 2019

Posted: Mon Nov 9, 2020 11:12pm

Good luck. Hope your life in Spain is what you want it to be👍 We moved to the Orba valley 10 months ago and love it.

Davebev1

Posted: Tue Nov 10, 2020 7:52pm

Davebev1

Legendary helpful member

Posts: 1593

2237 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Tue Nov 10, 2020 7:52pm

Just a couple of points to clarify/reiterate from among the great advice you have been given.

A BnB needs a business license for a BnB.  A self-contained, self-catering holiday let requires a Tourist License.  The regulations for each are very different so you do need to decide if you are going to be letting rooms within your home or letting a totally independent apartment/casita.  

The local Town Hall have to issue a Compatibility certificate before you can apply for the Tourist License, so you do need to know they are happy to do so before you buy.  Most 'annexes' and underbuild conversions do not comply if the rules are strictly applied, however a Town Hall can also waiver certain compliances if they wish to do so, which is rare.  If the property has an existing Tourist License it is currently transferable to the new owners of the property.

If you are able to qualify for residency (TIE) after brexit then you will have to do so without having the rental income taken into account as that will be unproven and projected income only.  So you will need the new level of income (currently it is thought it will be around €32,000 per annum for a couple) plus comprehensive life insurance for your TIE application.  You can also qualify on a capital sum in the bank plus assets.  Bear in mind that it is currently not confirmed that the UK will definitely leave 'no deal', (but is looking that way) so any deal done may change things.  If you are renting temporarily while house-hunting you will need a long-term contract of at least 6 months to be able to use the address for your TIE application.  

If you are resident in Spain then currently tax is payable with a few allowable deductions at 19% on rental income.  After brexit transition ends for UK residents it will go up but for those resident in Spain it wont.  The rental income on a holiday let can be declared in your annual tax return as a resident but it is quarterly for non-residents.  Your accountant will advise on how/when to do the business tax return if you are running a BnB as being a business you may also need to register for IVA (equivalent of VAT) and do appropriate returns.

There is a lot to consider, but if the rental is an important option for you then there are decisions that need to be made in advance and it will limit your choice of property.

KalMal

Posted: Tue Nov 10, 2020 8:59pm

KalMal

Original Poster

Posts: 13

1 helpful points

Location: Monóvar

Joined: 2 Nov 2020

Posted: Tue Nov 10, 2020 8:59pm

Kevman wrote on Mon Nov 9, 2020 11:12pm:

Good luck. Hope your life in Spain is what you want it to be👍 We moved to the Orba valley 10 months ago and love it.

Aww thanks Kevman 😊 

So glad its worked out for you, its encouraging to hear, as sometimes the process appears pretty daunting! Its all research at the moment, as cant do much else due to covid. 🙄☺

Toto

Posted: Tue Nov 10, 2020 9:05pm

Posts: 8

3 helpful points

Location: Torrevieja

Joined: 5 Jun 2020

Posted: Tue Nov 10, 2020 9:05pm

Check out the link........take your time.

Bon Voyage ...Jean-Claude

https://www.spanishpropertyinsight.com/buying-property-in-spain/costs/

Advertisement - posts continue below

KalMal

Posted: Tue Nov 10, 2020 9:12pm

KalMal

Original Poster

Posts: 13

1 helpful points

Location: Monóvar

Joined: 2 Nov 2020

Posted: Tue Nov 10, 2020 9:12pm

Davebev1 wrote on Tue Nov 10, 2020 7:52pm:

Just a couple of points to clarify/reiterate from among the great advice you have been given.

A BnB needs a business license for a BnB.  A self-contained, self-catering holiday let requires a Tourist License.  The regulations for each are very different so you do need to decide if you are going to be letting rooms within your home or letting a totally independent apartment/casit...

...a.  

The local Town Hall have to issue a Compatibility certificate before you can apply for the Tourist License, so you do need to know they are happy to do so before you buy.  Most 'annexes' and underbuild conversions do not comply if the rules are strictly applied, however a Town Hall can also waiver certain compliances if they wish to do so, which is rare.  If the property has an existing Tourist License it is currently transferable to the new owners of the property.

If you are able to qualify for residency (TIE) after brexit then you will have to do so without having the rental income taken into account as that will be unproven and projected income only.  So you will need the new level of income (currently it is thought it will be around €32,000 per annum for a couple) plus comprehensive life insurance for your TIE application.  You can also qualify on a capital sum in the bank plus assets.  Bear in mind that it is currently not confirmed that the UK will definitely leave 'no deal', (but is looking that way) so any deal done may change things.  If you are renting temporarily while house-hunting you will need a long-term contract of at least 6 months to be able to use the address for your TIE application.  

If you are resident in Spain then currently tax is payable with a few allowable deductions at 19% on rental income.  After brexit transition ends for UK residents it will go up but for those resident in Spain it wont.  The rental income on a holiday let can be declared in your annual tax return as a resident but it is quarterly for non-residents.  Your accountant will advise on how/when to do the business tax return if you are running a BnB as being a business you may also need to register for IVA (equivalent of VAT) and do appropriate returns.

There is a lot to consider, but if the rental is an important option for you then there are decisions that need to be made in advance and it will limit your choice of property.

Thanks for that cracking information Dave. Do you think the annexe within the property is the way to go then?

Is there a formal list of the standards that need to be met? 

Its not the be all and end if we can't do it but it wouldve been a bonus.

We can't do much other than research at the moment due to covid and I suppose it would be better to wait and see what deal brexit brings? 

Its great the info that been shared by all the knowledgeable peeps on the forum!

Do you rent property out yourself? 

Thanks Dave 😊 

KalMal

Posted: Tue Nov 10, 2020 9:13pm

KalMal

Original Poster

Posts: 13

1 helpful points

Location: Monóvar

Joined: 2 Nov 2020

Posted: Tue Nov 10, 2020 9:13pm

Toto wrote on Tue Nov 10, 2020 9:05pm:

Check out the link........take your time.

Bon Voyage ...Jean-Claude

https://www.spanishpropertyinsight.com/buying-property-in-spain/costs/

Thank you, will definitely have a look 😀 

Davebev1

Posted: Wed Nov 11, 2020 11:49am

Davebev1

Legendary helpful member

Posts: 1593

2237 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Wed Nov 11, 2020 11:49am

KalMal wrote on Tue Nov 10, 2020 9:12pm:

Thanks for that cracking information Dave. Do you think the annexe within the property is the way to go then?

Is there a formal list of the standards that need to be met? 

Its not the be all and end if we can't do it but it wouldve been a bonus.

We can't do much other than research at the moment due to covid and I suppose it would be better to wait and see what deal brexit brings? 

Its great the info that been shared by all the knowledgeable peeps on the forum!

Do you rent property out yourself? 

Thanks Dave 😊 

This is the official guide for Valencia.  Remember that each region sets its own regulations, so if you cross into Murcia the rules will be different.

https://aaffvalencia.es/wp-content/uploads/2019/04/GU%C3%8DA-DE-LA-VIVIENDA-TUR%C3%8DSTICA-PARA-PROPIETARIOS.pdf?fbclid=IwAR1UJoB3LRDxcAUPgnh8FeAHugk_t1XCCuaTTI9L49E7b0Ca2gbbqcce1dU

Section one covers the definition of a holiday let.  It needs to be a totally separate entity to the main house (can still be attached, just independent), it needs all its own utilities and no part of the facilities needed by the rental guests would be shared with the main house, including the entrance, and a separate electric meter (for example).  It could share a pool or garden area as long as those are listed as shared and not for sole us by the rental.

A studio apartment is defined as an accommodation consisting of a living/dining/kitchen area with separate bathroom (minimum of 24 m2 for Standard category).

Rental accommodation should be furnished and equipped appropriately, with the following as a MINIMUM:  Cutlery, Kitchenware and appliances, Bed linen, Curtains, Kitchen appliances, Fridge freezer, Electric grill/griddle, Oven/microwave,  Extractor fan and smoke alarm.  Generally people also expect air con, wifi and UK TV, plus heating for winter guests.

Room Sizes (min. m2 space)

Standard

Primera

Superior

Main bedroom including wardrobe

10 m2

12 m2

14 m2

Double bedroom including wardrobe

8 m2

10 m2

12 m2

Single bedroom including wardrobe

6 m2

8 m2

9 m2

Per person sharing room i.e. per bed

3.5 m2

4.5 m2

-

Living/dining

14 m2

17 m2

20 m2

Kitchen*

5 m2

7 m2

8 m2

Bathroom**

4.5 m2

5.5 m2

5.5 m2

*The kitchen should be equipped with a hob with a minimum of two burners when the accommodation doesn't exceed 4 guests and a hob of three burners or more when it exceeds 4 guests.

**There must be at least one bathroom including a bath with shower, washbasin and toilet and/or a washroom with a shower, washbasin and toilet.

There are various other requirements but ultimately whether you can obtain a Tourist License comes down to whether you can first obtain the required Compatibility Certificate from the local Town Hall - without that it won't matter whether the property fully complies or not, you still cannot apply for a License.  The Town Hall can waiver certain requirements too as they may be in favour of more Licenses in the area (particularly for rural tourism) and the house may be a traditional/old building so the bathroom won't be big enough but can't be changed.  It is discretionary, which also makes it arbotary unfortunately.

For a BnB/guest house it is totally different as you are running a business that is covered by different legislation.

Have a look through the Guides - the original blogs (6 part) are older but still valid whereas the videos were done this summer.

You are looking at being a little inland so need to think about your target market as well and how appropriate the holiday accommodation is for that market.  You are not going to be marketing to those who are wanting a 'sun, sea and sand' holiday, but maybe walkers, cyclists, those looking at a quieter and more authentic 'Spanish' experience.  Check rental rates and occupation (this year obviously not typical!) too by looking at ads for existing holiday lets in the same area and gauging if the expense of setting up and running the holiday let will be a good financial decision, you need to know the numbers will stack up to give you an income otherwise no point in doing it.  

It IS viable if you get the right property and the Town Hall are helpful.  But you must make the checks before buying.

DavenJules

Posted: Wed Nov 11, 2020 2:12pm

DavenJules

Helpful member

Posts: 329

179 helpful points

Location: Monóvar

Joined: 1 Dec 2019

Posted: Wed Nov 11, 2020 2:12pm

Davebev1 wrote on Wed Nov 11, 2020 11:49am:

This is the official guide for Valencia.  Remember that each region sets its own regulations, so if you cross into Murcia the rules will be different.

https://aaffvalencia.es/wp-content/uploads/2019/04/GU%C3%8DA-DE-LA-VIVI...

...ENDA-TUR%C3%8DSTICA-PARA-PROPIETARIOS.pdf?fbclid=IwAR1UJoB3LRDxcAUPgnh8FeAHugk_t1XCCuaTTI9L49E7b0Ca2gbbqcce1dU

Section one covers the definition of a holiday let.  It needs to be a totally separate entity to the main house (can still be attached, just independent), it needs all its own utilities and no part of the facilities needed by the rental guests would be shared with the main house, including the entrance, and a separate electric meter (for example).  It could share a pool or garden area as long as those are listed as shared and not for sole us by the rental.

A studio apartment is defined as an accommodation consisting of a living/dining/kitchen area with separate bathroom (minimum of 24 m2 for Standard category).

Rental accommodation should be furnished and equipped appropriately, with the following as a MINIMUM:  Cutlery, Kitchenware and appliances, Bed linen, Curtains, Kitchen appliances, Fridge freezer, Electric grill/griddle, Oven/microwave,  Extractor fan and smoke alarm.  Generally people also expect air con, wifi and UK TV, plus heating for winter guests.

Room Sizes (min. m2 space)

Standard

Primera

Superior

Main bedroom including wardrobe

10 m2

12 m2

14 m2

Double bedroom including wardrobe

8 m2

10 m2

12 m2

Single bedroom including wardrobe

6 m2

8 m2

9 m2

Per person sharing room i.e. per bed

3.5 m2

4.5 m2

-

Living/dining

14 m2

17 m2

20 m2

Kitchen*

5 m2

7 m2

8 m2

Bathroom**

4.5 m2

5.5 m2

5.5 m2

*The kitchen should be equipped with a hob with a minimum of two burners when the accommodation doesn't exceed 4 guests and a hob of three burners or more when it exceeds 4 guests.

**There must be at least one bathroom including a bath with shower, washbasin and toilet and/or a washroom with a shower, washbasin and toilet.

There are various other requirements but ultimately whether you can obtain a Tourist License comes down to whether you can first obtain the required Compatibility Certificate from the local Town Hall - without that it won't matter whether the property fully complies or not, you still cannot apply for a License.  The Town Hall can waiver certain requirements too as they may be in favour of more Licenses in the area (particularly for rural tourism) and the house may be a traditional/old building so the bathroom won't be big enough but can't be changed.  It is discretionary, which also makes it arbotary unfortunately.

For a BnB/guest house it is totally different as you are running a business that is covered by different legislation.

Have a look through the Guides - the original blogs (6 part) are older but still valid whereas the videos were done this summer.

You are looking at being a little inland so need to think about your target market as well and how appropriate the holiday accommodation is for that market.  You are not going to be marketing to those who are wanting a 'sun, sea and sand' holiday, but maybe walkers, cyclists, those looking at a quieter and more authentic 'Spanish' experience.  Check rental rates and occupation (this year obviously not typical!) too by looking at ads for existing holiday lets in the same area and gauging if the expense of setting up and running the holiday let will be a good financial decision, you need to know the numbers will stack up to give you an income otherwise no point in doing it.  

It IS viable if you get the right property and the Town Hall are helpful.  But you must make the checks before buying.

Awesome level of support, advice & guidance. I hit 'like / found helpful' for the diligence and quality - makes this site great, even if we ourselves are not in that market.

Best wishes,

D&J

Davebev1

Posted: Wed Nov 11, 2020 2:27pm

Davebev1

Legendary helpful member

Posts: 1593

2237 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Wed Nov 11, 2020 2:27pm

DavenJules wrote on Wed Nov 11, 2020 2:12pm:

Awesome level of support, advice & guidance. I hit 'like / found helpful' for the diligence and quality - makes this site great, even if we ourselves are not in that market.

Best wishes,

D&J

Thank you!

Sign up for free or login to reply to this topic

Want to reply to this topic? Login or register for free to post your message:

Find more Introduce yourselves topics from a particular area:


Register for free!

Login to your account

Costa Blanca Building Specialists
Espana Dream Properties
ASSSA Insurance
Airport Service Taxi Mil Palmeras  Torre de la Horadada
Gran Alacant Insurances
Jennifer Cunningham Insurances SL
Expat Services
POSITIVE BELIEFS
Gentlevan Removals
Blacktower Financial Management
James Spanish School
interior building work
AA Free English TV
Thy Will Be Done
Car Key Solutions
Advertise your business here
Advertise your property
Help with my computer