Inspection From Department of Tourism

[Mariquita]

Friends have just been visited by an inspector from the Department of Tourism asking if they were the owners (which they weren't). He also said he was aware that the apartment was rented out and left his calling card.

Has anyone else had a similar experience?

What is the implication for those that rent out?

I assume that the information is being collected for the tax office in Pollensa.

 

[allanglens]

I don't want to worry you, but...

www.telegraph.co.uk/prope...sta112.xml

You will note that people are already being fined, and quite heavily.

allanglens

 

[pollensa]

Last year there was a process introduced to license villas & the view was that apartments would be licensed at a later date but I haven't yet heard any more. Does anyone else know?

 

[illador]

We were advised last year that the regulations only applied to detached villas. However in light of the above it is a little worrying - and no doubt the authorities are using web sites to do their research.

What's the best way to tempoarrily withdraw a listing from puertopollensa.com while we find out how to proceed? Don't want to lose the listing completely.

Any advice gratefully - and urgently - received.

Illador

 

[mallorcaboy]

I remember sometime last year there was quite a long topic about the tax/licensing aspect to rentals. I believe that Spain’s hotels are putting a lot of pressure on the authorities to stamp out illegal renting because they loose a huge amount of revenue every year through this. It stands to reason that the Tax Office must be aware of vast amounts of untaxed income going to Spanish and foreign property owners and they obviously want to take what is legally theirs. Also be aware that HM Inland Revenue and the equivalent Spanish authorities work closely together. I believe you actually have to pay tax in both countries on monies earned.
There is a general feeling amongst Brits that the Spanish are very laid back about most things like this, and that the tax office turns a blind eye to "Black money" (undeclared income). I can assure you this is not the case. It may seem that anything goes in Spain, but be certain of the fact that when things go wrong, they go seriously wrong. You can have your property confiscated in respect of unpaid tax.
Having property in Spain is great, but if you break the law regarding tax, and you are caught, the wheels can very seriously come off. Beware!!

 

[pollensa]

Illador,

I've sent you a PM re withdrawing your advert.

For anyone else, if you 'cancel' an advert online, the actual advert is not deleted. It is still available on the system & can be reinstated at a later date.

Webmaster

 

[allanglens]

Here is the link to the previous thread:

p221.ezboard.com/fpollens...=1&stop=25

You will note that at one point there is a reference to a six month 'period of grace' for registrations from September 2006, so perhaps the tax / tourism people have now started to get pro-active in enforcing this law.

I do note however that no-one seemed to be able to clarify what type of properties were involved, or whether it covered all lettable property. It appears to be the latter.

allanglens

 

[pollensa]

At the time we were advised that it only covered villas as they had to be 'aislado' (detached) & that apartments would be covered at a later date.

We will post anything more as soon as we get news. Please would anyone else,

Thanks.

 

[pinewalkstroll]

From January 08 onwards,we are seeking a long term rental in PP as we will be living permantently there. We have already arranged the childrens schools etc.

I fully intend to get a Residence card/s and as we are of independent means, i wonder if that would be classed as a holiday let. Perhaps this would be a soulution to this serious issue ?.... Your thoughts would be greatly appreciated.

 

[pollensa]

pinewalkstroll,

I think you need to check with the rental agencies but I think the classification of the type of let depends on the property & the contract and not the status of the inhabitants. I think long term lets are different as the inhabitants have greater rights.

But I am only guessing so please do check with the Rental Agents who should have a much better idea than we do. As you can see from the posts here, there is a lot of uncertainty.

 

[tombadino]

Just a silly question,
If you are letting your property for a profit and paying your tax ............why the panic (or are you)

 

[pollensa]

The issue is that we believe that it may now be necessary to register a rental property with the Ministry of Tourism before you are allowed to rent out a property. Last year a procedure was set up to register villas - however the situation with apartments is currently unclear.

In addition tax needs to be paid both in Spain & the UK as explained in an earlier post. Although the tax paid in Spain can be offset against UK tax on production of the apprpriate tax documents.

 

[illador]

Dear Tombadino,

I doubt whether anyone is deliberately avoiding paying what's due ( despite your inference). We al pay Uk taxes.

What's required is clarification as to what the precise situation is regarding registration.

 

[HolaGL]

Hello. Ive been an avid reader for a while but have not replied to athread before.

I know this thread has been dormant for a while, but readers may wish to see the latest info from the Spanish Property Insight - Everything you need to know about property in Spain site. www.spanishpropertyinsigh...160907.htm

It has some excellent info about the ilegality of renting out but gives some hope for us who let our friends use our homes.

Best regards

Gordon

 

[Mariquita]

The article spells out very clearly the legal position in Mallorca:

“In the Balearics, you cannot rent out private residential apartments,” says Isabel Loeffler, head of Loeffler Legal Centre, on Mallorca. “The only kind of residential property you can rent out is a detached villa, but only if you have a licence.”