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How would you rent out Spanish property whilst living in UK as UK residency

Posted: Wed Jan 16, 2019 3:13pm
5 replies185 views5 members subscribed
Callie

Posts: 16

1 helpful points

Joined: 19 Aug 2018

Hi there,

Can anyone out there help me please!

We have a 3bed villa with a beautiful private pool in Pinar and would like to rent it out as much as possible this year.  Ive looked at using a property agent in Spain advertising it on the internet on hometogo / trip adviser air bnb and other main sites, they take hassle out of obtaining the tourist license which is great but that means I can only use them.  If I go with any other agency or try and advertise it myself I need my own tourist license.  How or what is the easiest way of me obtaining this whilst living in the UK?  I can pay the agency a further 250euro's for a multi tourist license, if I use them.  Would you do this?

So my questions are: if we live in UK is it best to advertise over here and pay UK tax or the rent received? Assuming that rent is paid in sterling into UK bank. Or is it best to get rent paid in euro's and paid into Spanish bank account? Assuming then you only tax on Spanish bank account?

Would you use a Spanish agency to manage your property for you, just for the ease and convenience and if yes, who could you recommend?

Or would you solely rely on advertising it in the UK on all the major internet sites, similar to above?

Any help or guidance would be greatly received, there's so much to take on and learn about how the Spanish conduct their affairs.   I don't want to start off on the wrong foot and end up paying fines and taxes for mishaps that I'm unaware of that then don't make it worth renting out.

I look forward to any advice, please.

Many thanks

Callie

Davebev1

Posted: Wed Jan 16, 2019 8:08pm

Davebev1

Legendary helpful member

Posts: 1574

2227 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Wed Jan 16, 2019 8:08pm

First, the owner is the one who applies for the license, although you can pay someone to do that on your behalf.  it is also the owner who registers with the Guardia Civil.  We have posted a lot about that and with links to info sites and where you can download the paperwork.  If you can't find it best to PM me and I'll send it to you.

Second - I would not recommend sites like airbnb, tripadvisor and booking,com.  Like several other sites they will take bookings for you but leave you with little or no say over who stays there or when, and they do not 'do it all' for you - it's still your responsibility to collect the renters details and pass onto the Guardia Civil, arrange keyholders and cleans, file your tax returns and ensure compliance with the contract issued.  What they will do is charge you for the ad, charge the renter a booking fee and then charge you a fee for paying out the rental to you - they will also hold onto the rental money from the time it is paid over by the renter until after the renter has arrived.  all in all not a good deal for either owner or renter.  there are better options that are fairer to both parties.

Your tax return is still your responsibility.  As things stand, as you are a UK resident you would do a quarterly Spanish tax return with 19% tax payable immediately on the rental received the previous quarter with a few allowable deductions.  However if Brexit goes ahead and the UK becomes a 3rd country then the tax will be 24% of the gross rental (still quarterly).  You must also declare your income in your annual UK tax return and the state how much tax has been paid in Spain which reduces your UK tax liability.

So your choice is either first get your license and then pay a local holiday rental agent (there are a couple advertising on this forum) who will handle the ads, bookings and paperwork for you as well as the cleaning, pool maintenance and keyholding but hopefully respects any restrictions you may want on who stays (ie no student groups, no stag/hen groups etc) for a fee/commission.

OR  You handle the bookings yourself and use sites such the one here on the formum or Spain-holiday.com or holidayhomesdirect.ie as they allow you to stay in control of who stays and when, take the payments and send out your own contracts and info.  You would still need to employ a keyholder/cleaner and pool maintenance person (who need to be registered as a business or as self-employed).

It would be worth doing a couple of checks first to see if your property will meet the required criteria for a rental before starting the process, so you are not paying out and waiting months only to be told your bathroom is too small for a holiday let license on the property (it has happened to a few people).  Please don't be tempted to try advertising without a license - the fines are very large.

Callie

Posted: Thu Jan 17, 2019 12:40am

Callie

Original Poster

Posts: 16

1 helpful points

Joined: 19 Aug 2018

Posted: Thu Jan 17, 2019 12:40am

Thank you for taking the time to write back to me and responding so quickly. I really do appreciate your well written explanatory notes! Thank you so much

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Callie

Posted: Thu Jan 17, 2019 12:44am

Callie

Original Poster

Posts: 16

1 helpful points

Joined: 19 Aug 2018

Posted: Thu Jan 17, 2019 12:44am

Hi Ray,

Thank you for taking time to reply back to me, that’s excellent I didn’t realise that you’d still have to pay Spanish tax on your rental especially if it was received in the UK. I’ll look into that further.

Thank you

Caroline

Warnerheather

Posted: Wed Jan 23, 2019 4:05pm

Posts: 29

12 helpful points

Joined: 28 Jun 2017

Posted: Wed Jan 23, 2019 4:05pm

Hi Callie

If you do decide to go ahead with your rental, I have a legal cleaning and laundry service in Campoverde and I am more than happy to give you a quote if required.

Regards

Heather

Caz60

Posted: Mon Feb 4, 2019 6:27pm

Posts: 3

11 helpful points

Joined: 27 Jun 2016

Posted: Mon Feb 4, 2019 6:27pm

Callie  if you do decide to rent, please could you consider us as long term tenants.  We are two retirees and have already lived in Campoverde for 10 months.  MY sister is there too so we know the area well

PLEASE let us know if you decide

Regards

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