Spanish locals and British expats alike have long profited from the many British holidaymakers making the trip over to the Costas to soak up some summer sun. While the holiday rental market has been booming despite the ever worsening Spanish economy things may be about to change.
The trouble occurs with Spain’s indistinct long and short term rental legislation which also differs across different regions.
It is estimated that a massive 55% of Spain’s rental properties remain undeclared with no tax being paid. Many of these properties are owned by expats.
With fines reaching €30 000, the British government has been moved to issue advice urging British expats wanting to rent their homes to consult local town halls and solicitors to ensure that they obtained all the necessary permits.
However, many in the Spanish expat community doubt whether the Spainish government has the resources to properly enforce the legislation already on the books.
Often it is the Spanish hotel industry most concerned about the illegal flooding of the rental market and lobbying the Spanish government hard to do something about it.
As it stands expats should be careful about renting their property and should try to get the correct permissions if they can.