Spanish Government is creating Confusion in Holiday Lettings Market

The controversial new legislation designed to clarify and regulate the lucrative holiday rentals market in Spain is doing quite the opposite, it has already led to confusion and uncertainty among potential foreign property buyers who had hoped to use this investment vehicle. If you are in the process of buying a Spanish holiday home in Marbella or elsewhere at the Costa del Sol that you wish to let to tourists in the future, be sure to take extensive legal advice before marketing your holiday home, or you could end up being fined.

Saving up even more to enjoy a Holiday

The controversial new law may even prevent British holiday home owners with properties in Spain and France from letting out. The very latest on this hotly debated law, which is currently still in the planning stage, is that millions of holidaymakers from Britain, who usually rent private villas or apartments, may well end up paying hundreds of Euros more for their Costa del Sol break than they have done up to now.

According to industry experts, holidaying families from the UK would be the worst affected, as they would no longer be able to book with private owners directly who offer far cheaper villa and apartment rentals than third party agents or tour operators. Holidaymakers would be forced to seek accommodation in villas, hotels or apartments that are owned by institutional investors or tour operators.

Cash-strapped families in Britain will welcome this news with dismay, for it will take them even longer to save up for a family break at the Costa del Sol. Many can’t afford the prices charged in Marbella’s 4 and 5-star hotels, so there will be little choice but to holiday elsewhere or use Marbella’s camping grounds instead.

Biting the Hand that feeds you

Bearing in mind the Spanish government needs foreign property buyers to get them out of the worst financial crisis since the Great Depression, this legislation is sending out an entirely wrong message. As for holidaymakers, whose hard-earned cash was spent in Spain and has helped to get the country over the worst of the crisis, they may well choose to go somewhere else.

From next spring onwards, unlicensed holiday rentals will be banned, so official sources said.

 “This law is closing the door to working and middle-class families who want to book a break to Spain at an affordable price,” warned Ryan Levitt, of holiday rental website housetrip.com – but it does far more damage than that.

The glut of unsold Spanish homes lies in the lower end of the property market, the very homes usually purchased by the working and middle-class families Spain’s government is now driving away.

‘“Instead of being able to share a whole house with friends, you face being stuck with your kids in a cramped hotel room,” added Ryan Levitt. Given that the whole idea of housetrip.com is to stay in a real home, not a show house designed by savvy hoteliers, he has a point and a real problem on his hands.

Penalised for showing enterprising Spirit

British homeowners in Spain total at least one million and while many holiday homes are now actually permanent homes for expats, there are still hundreds of thousands of Brits who let out their homes to tourists. They don’t get rich doing this, they are simply covering the maintenance costs and make a little rainy-day fund on the side.

Until Euro officials got their sticky paws on the latest area to be milked for further taxation, British homeowners with properties in two countries had few difficulties letting. However, under the proposed legislation, anyone with a second home in Spain must obtain a licence from their local council, which will cost, naturally. It also opens up a new vista for those corrupt individuals who are still dreaming of their glory days, when bribes got you planning permission in protected areas.

Property owners must now meet strict conditions with regard to their lettings venture. From obtaining hygiene certificates to passing regular safety inspections, if any point necessary to maintain the licence fails, the owner is fined, and fines will be high.