Category Archives: Oversease Property Finder

Is renting your house as a holiday let still a viable option?  Part 5 A few house-keeping matters

House by the Pool (1)

We have already mentioned paying tax on your income, but just a quick clarification.  At present, (summer 2018), anyone resident in an EU country pays tax on their rental income at 19% and anyone resident in a non-EU country pays at 24% in Spain.  If you are a Spanish resident, then you would declare your income annually in your normal Spanish tax return and pay the tax at the same time as your other tax liabilities.  If you are non-resident in Spain, then the rental income must be declared quarterly, and in the first two weeks following the close of each quarter.  So, January to March must be declared in the first two weeks of April, and so on through the year.  The tax is then payable immediately.

There are allowances that can be declared to reduce your tax liability, such as a percentage of your Community fees, a percentage of your Suma, certain cleaning and keyholding costs and we are also allowed some of the cost of the air conditioning service, insurances and professional fees, plus a few other sundry costs.  Exactly how much is deducted will depend on how many days the property is rented out.  Some of these costs have changed over the years so it is best to consult a professional to ensure you are claiming the correct expenses and therefore paying the correct tax.  Our non-residents tax is reduced pro-rata by the number of days the property is rented.

You are also required to declare your rental income in your country of residence, which for us is the UK.  This is declared annually from April each year.  Now comes the tricky bit – both countries may want you to produce original receipts!  We keep the receipts in the UK but can send scanned copies to Spain if required, and so far that has been ok.  In the UK we can claim far more in the way of expenses against our rental income, so the net income from the rental declared in the UK is different from that declared in Spain!  I pay someone to file my Spanish tax return quarterly and the cost is very reasonable.  In the UK I have another business so have an accountant for that business and he checks over my booking keeping for the house rentals and then adds it onto our annual tax returns accordingly.  Due to the dual tax agreement between Spain and the UK we rarely pay tax in the UK on the rental income, but we must still declare it.

Your keyholders are vital to a successful holiday rental.  I can honestly say we have had good, not so good and excellent over the years.  We even sacked one!  But a professional company will take a pride in their work and we currently have both a professional and friendly keyholding company who make our guests feel very welcome.  I view the keyholders as our partners in the business.

We do our best to ensure our guests are suitable for our community.  Our target market is multi-generation families (grandparents, parents and children holidaying together) as this tends to mean the children of any age are always under adult supervision.  Renters do sometimes flout the community rules – either because they haven’t read them or don’t think it matters, but we include a copy in the contract and display them on the back of the door, highlighting rules that are of particular relevance to them.  All our neighbours have our telephone number and email address and have been asked to contact us directly if there are any problems.  There have rarely been any issues over the years, but we have always acted promptly if told about anything.   In fact, we are told when people on the community complain about holiday makers that they don’t mean our renters but the ‘other ones’!  Neighbours have even become long-term friends with a couple of our guests!    Returning guests are probably an owner’s greatest compliment and we are fortunate enough to have several who book from year to year or bi-annually, others have recommended our property to family and friends.  The returning guests are a reflection of getting things ‘right’ and I must give credit to the keyholders as well for that.

Is renting your house as a holiday let still a viable option? Part 4– other requirements

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Being legal and having a licence applies to the property owner but avoiding fines also means ensuring those you use to work for you are also legally registered.   There have in the past been those who were paid keyholders and cleaners who were working cash-in-hand and not declaring their income. When you register for your password with the Guardia Civil they will ask who acts as your keyholder if you are not yourself resident in Spain.  They note the name and contact details and request the person concerned attend the office with their passport and tax number. If you are found employing an unregistered worker, then you can both be fined.

Another common practice has been for people to act as unofficial taxis providing airport transfers.  There are regulations regarding this and recently a mini bus owner was fined 6000 euros when stopped by police and the passengers said they were paying the man.   Yes, that said six thousand euros! The fines in Spain are not small!

For some reason no one yet asks you to produce copies of your insurance certificate, but I’m sure that will come in time as you do need to be insured.  We have always had a specialist holiday rental policy from a UK insurer (small-print in your mother tongue is tricky enough, but in another language, it is a total nightmare!).  This covers the property, us and the holiday makers plus has a public liability provision. Another certificate I’m sure will be necessary in the future is the one from your air conditioning engineer regarding annual service of all air con units.  We ensure we use a properly registered engineer and have a full invoice with his tax number displayed as required under Spanish law. If we had gas appliances I would be anticipating needing to produce your invoice showing the annual service of those fixtures too, but we are all electric.

We also have a fire extinguisher, fire blanket and smoke alarms on each level.  We display our evacuation plan and provide the emergency number with a multi-lingual service.  What we cannot do is ensure that our guests actually read any of this clearly displayed information!

In addition to the information we must display, (we use the back of the front door as a notice board), we duplicate this information in the ‘house folder’ which also contains additional information on the house, the keyholders, washing machine instructions, internet access codes, TV stations, info on the area, directions to the supermarket and beach etc, bus timetables, 24 hour pharmacy, driving in Spain information, matters of personal safety, English speaking radio stations and a few other miscellaneous items.  But we know that despite saying in the welcome letter sent out before the holiday that they should read the contents of the folder, guests don’t look at it! How do we know? From phone calls, emails and text messages asking for information that is detailed in the folder! So, complying with all the rules doesn’t actually mean the guests will take notice of anything, but we must still do what is required of us.

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Is renting your house as a holiday let still a viable option? Part 3 So what do holiday-let owners need to do?

Is renting your house as a holiday let still a viable option? Part 3
So what do holiday-let owners need to do?
First, this is a blog not legal advice.  Second, rules change and new additional requirements will be added over time, so this relates to summer of 2018 and Alicante region only as I understand things currently.  In fact, as I write this, a new rule for the Valencian Communidad has just come in!
As from 9th July 2018 all new applications will first need a certificate of compatibility from the local Town Hall.  There are over 500 Town Halls and it is likely each one will set their own criteria!  I have been told my Town Hall is estimating a waiting time of 2 months, but I suspect few Town Halls would have been ready on time, generally things get organised after the requirement has started!
Inspections have finally started too, which were not set up until recently in most areas, so more waiting while you take your turn in the queue for someone to check over the property before your licence is issued.
If you don’t want a large fine, then get legal!  You can either pay one of the legal companies who do them to get it for you at a very reasonable rate or fill out the form (which can be downloaded) and submit yourself.  You can attend the offices in Alicante in person, or take the completed form and supporting documents to the post office for stamping and post it.  There is also the option of doing the process on-line, you would need to be confident of your Spanish to do this.  There is a waiting time of approximately 3 months in Alicante (on top of your wait for the Town Hall’s certificate and inspector).
Now you have your licence you will need to purchase the official plague – it is a very bright red and not very attractive!  You display this close to the entrance door either inside or outside the property.  We opted for inside as it didn’t look very weatherproof or attractive, then we had a smaller, discreet plague made for outside.  You must also buy official complaints form and put up the official notice to tell your guests they are available; both are in Valenciano and Spanish only, it is unlikely anyone would want to complete the forms in triplicate and submit them, but you must still have them.
And then you must attend your local Guardia Civil (national police) station, in person, to register with them and obtain your passwords for their on-line register of visitors.  We were one of the early applicants and when we went into the station to ask about making the appointment a confused officer asked why he would want to know who was staying in our house!  He asked another officer, and another, who both shrugged.  So we asked our solicitor to phone them and she was able to make the appointment for the following day.  It seemed that at that time not even those who had to process your application knew anything about it!  But, it transpired, there was just ONE officer appointed to this job who spoke only Spanish and appeared to have all day to do just one set of forms.  I’m told that he is still the only one at that station and has a massive waiting list for appointments.  But without your user name and password you can’t access the site and submit the guests’ details, so you can’t legally rent out.  More delays in becoming legal.
The on-line form on the Guardia Civil site requires owners to enter various passport details for all those guests over 16 years of age.  Hotels have been doing this for years but have a scanner whereas we do it manually.  We added a clause to our contract to say that refusal to provide the details required under Spanish law in advance of their arrival would be treated as a cancellation of the contract by the renter as a protection against people refusing to provide the information when they arrive – no details received then no details provided of how to access the house!  It may seem a bit brutal, but they wouldn’t get their room keys in a hotel without their ID being scanned/shown, and why would anyone refuse if they have nothing to hide from the authorities?  And why should we pay a very heavy fine for their refusal to comply with the law?  We also added GDPR info to our web site, booking form and contract to state what we would need and what will be done with the info.
So, there you have it – how to rent out legally, just don’t expect to ‘get legal’ quickly!
Bev

Property of the week

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Ref: TPS0145/MP542
Type: Townhouse
Area: Costa Blanca South
Town: Playa Flamenca

 

Beds: 3
Baths: 1
Pool:
Price: €132,000

Description:

3 Bed 1 Bath Corner Townhouse in Playa Flamenca. This lovely quad townhouse comes with 3 bedrooms and 1 bathroom and is located in Playa Flamenca, south Costa Blanca. Only 800 meters from the beach. This property has a corner garden at the front and on the side of the building, leading to the terrace out the front which is covered for shade in the summer months. There is also a fixed toldos for extra shade and fitted guttering around the property. You enter into the spacious living room/dining room with gorgeous rounded windows to let in the natural light giving the townhouse a cottage feel. In front is the American style kitchen, with wooden units and white goods included, leading to the back door to the utility room. On the left you have the 2 downstairs double bedrooms, both with built in wardrobes, and the family bathroom. From the living room up the stairs to the second level is the master bedroom. This has built in wardrobes but comes with the half wall from the staircase. This takes you on to the private roof solarium where you can relax in the Spanish sun.
This property comes with air-conditioning. There is a choice of 2 great communal swimming pools, both gated for residents only.

Only a 2/3 minute walk is the supermarket for all your supplies and close by is another. On the main road is a go karting activity centre. Close by are 3 commercial centres for bars and restaurants, shops, hairdressers etc.
If you like to play golf – you have 6 championship golf courses to choose from in the area.

 

 

 

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Exclusive Offer From Spanish Dream Property

Exclusive Offer From Spanish Dream Property
We are often asked if we provide ‘viewing trips’, but we prefer a more personal approach for your visit.
If you are looking for property in south Costa Blanca then we offer our clients the option of staying in our own property in Playa Flamenca. A legal, registered holiday let, (VT-442999-A), but offered to our clients at a highly reduced rate and the promise of a refund in full of the rental and the of the end of stay cleaning fee if you buy one of the properties we arrange for you to view on that trip.
This gives our clients the opportunity to experience living in a real home rather than staying in an impersonal hotel room. The house is walking distance to the beach, Zenia Boulevard and a many other local amenities, yet located in a quiet residential community overlooking the communal pool. We can also arrange for airport transfers (also refunded if a property we show is purchased as a result of the trip).
We only have one house, so this offer is of course subject to availability and has to be limited to those in a position to proceed with a purchase if their dream property is found on this visit. This exclusive offer is only available to clients of Spanish Dream Property.
Spanish Dream Property
+44 1603 415296

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#oriuhelacosta

#costablanca 

#spain
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This is our home

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Exclusive Offer From Spanish Dream Property

We are often asked if we provide ‘viewing trips’, but we prefer a more personal approach for your visit.
If you are looking for property in south Costa Blanca then we offer our clients the option of staying in our own property in Playa Flamenca.  A legal, registered holiday let, (VT-442999-A), but offered to our clients at a highly reduced rate and the promise of a refund in full of the rental and the of the end of stay cleaning fee if you buy one of the properties we arrange for you to view on that trip.
This gives our clients the opportunity to experience living in a real home rather than staying in an impersonal hotel room.  The house is walking distance to the beach, Zenia Boulevard and a many other local amenities, yet located in a quiet residential community overlooking the communal pool.  We can also arrange for airport transfers (also refunded if a property we show is purchased as a result of the trip).
We only have one house, so this offer is of course subject to availability and has to be limited to those in a position to proceed with a purchase if their dream property is found on this visit.  This exclusive offer is only available to clients of Spanish Dream Property.
Spanish Dream Property
+44 1603 415296


www.spanishdreamproperty.com

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This is our home

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Buying Property for the CostaBlanca Holiday Market

Buying Property for theCosta Blanca Holiday Market

 

Here at Spanish Dream Property we have experience of renting our house as a holiday let. We can help you to find the best property options if you too are looking at renting to the holiday market.
Here are Some Quotes: that people have said to us about the way we work with them.
“Thank you for listening”. “We would like to arrange all our viewings through you as you have been so helpful.” “You showed us what we wanted, not what you had to sell.”

If you are looking for a property that you will want, or need, to let to the holiday market, then please speak to us first. For over a decade we have successfully rented our own house – always fully booked for the summer plus a lot of lower season bookings www.housebythepool.com

We are happy to share our experiences and information regarding doing so legally. Before buying a property to rent to the holiday market you need to understand the requirements for a property to be legally let and the implications and responsibilities on the owner. There are hefty fines for letting illegally or not paying your due taxes in Spain.

We are happy to answer your questions.

David & Beverley Townsend

House by the Pool (1)

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House By The Pool

 

 

2051We are Dave and Bev Townsend.  We purchased our house in 2006 as our Silver Wedding Annivsary present to eachother and it is ours and our family’s second home.  We have had many enjoyable times there and hope you will enjoy your stay too.

Our links with Spain go back many years, in Bev’s case to the 1960’s.  Her Grandfather, step-Grandma, Aunt, Uncle and parents all retired to Spain.  Dave was introduced to Spain as a result of these family links and it was a natural progression to buy our own property when the time was right.
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House by the pool, beach and golf is in Playa Flamenca in the Orihuela Costa, south Costa Blanca, Spain. Approximately 45 minutes drive south of Alicante Airport and 20 minutes drive north of Murcia Airport. Sleeps 6-8 people.

The house is registered with Ministry of Tourism for the Alicante region, registration number VT-442999-A.
The fully air conditioned quad house is on a small residential community with two communal swimming pools. The terraces overlook one pool in a gated garden. It has 3 bedrooms, a shower room, a bathroom, lounge-diner and an american kitchen. The terrace has seating, tables and sun shade for enjoying a morning coffee or an evening glass of wine in the Spanish sunshine. Or why not enjoy a family barbecue.
The location means that you are not dependant upon having a hire car as there are plenty of restaurants, bars and shops within walking distance. The local beaches are under a mile away and you can do your daily shopping at the excellent supermarket on your way back to your holiday villa. In the evening you can stroll to the local Irish Pub or Chinese restaurant. On Saturdays there is a very large street market. La Zenia Boulevard shopping complex, boasting 150 shops, bars and restaurants plus play area and bowling alley, is under 15 minutes walk from the house.
The Master bedroom has a King size bed and private balcony, and there are 2 twin rooms and two single folding beds, so plenty of accommodation for family holidays. The large solarium, with an outside lounge and sun loungers, has a sea view of the Med.
All rooms have air conditioning, ceiling fans and heating making it suitable for your summer holiday, winter sun holiday or even a long weekend break.
Wifi is included in the rental.  All utilities also included.
Cotton bed sheets are provided. Towels for use in the house are supplied but please bring your own towels for use at the pool and beach.
The house is fully double glazed and has security grills on all windows and lockable rejas on all doors. The terrace gate is also lockable.
If you do hire a car, parking is off road on the private driveway next to the house. A short drive will take you past groves of oranges, lemons and olives to golf courses, the salt lakes, cave houses or water park.

“Minor sea” or “Smaller Sea” Mar Menor

Mar Menor

Small sea

The Mar Menor means ‘minor (or smaller) sea’.  It isn’t a sea at all, it’s a lagoon, located on the northern stretch of the Murcian coast, just below the border with Alicante.  The lagoon is separated from the Mediterranean Sea by a spit of land 22km long with several breaks where it opens onto the Med.  The spit is between 100m and 1200m wide, so in places the two ‘seas’ lap at beaches the both sides of the road!  The road runs most of the length starting at the southern end and a ferry links the northern point of the spit to Santiago de la Ribera on the mainland side.  Roughly triangular in shape it covers 170km2 with 5 small islands within the lagoon and a total of 70km of coastline.

Generally, the water within the lagoon is several degrees warmer than the Med, making it a popular place for swimming and water sports all year.  At the northern point by San Pedro del Pinatar are the famous mud baths and salt flats.  The salt flats and shallow lakes are noted for their importance to nature and protected by national park status. This area records some of the mildest winter temperatures in Spain.

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Sadly in 2016 the beaches of the Mar Menor lost their Blue Flags, but it hasn’t slowed the rising popularity of the area or the beaches, and the local authorities are working hard to ‘clean up’ the quality of the water and regain their European Blue Flags.

The most popular resorts are (from north to south) San Pedro de Pinatar and Lo Pagan, Santiago de la Ribera, Los Narejos and Los Alcazares, Los Urrutias, Estrella del Mar, Los Nietos, Mar de Cristal and Playa Honda.

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The world famous La Manga Club Golf Resort is Located to the south of the Mar Menor next to the Calblanque National Park.  More information on all to follow so watch this space…!

Calblanque National Park

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Christmas Property Show Live

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Christmas Property Show Live

A short presentation on buying a property in the Costa Blanca or Mar Menor areas of Spain, with a festive feel.

16 December 10.00-10.30

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House by the Pool (1)

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