Licensing laws and buying in PP

[eleanor]

Well it is all quiet on the licence front but does this mean the problem has gone away? I think not! It is just waiting to show it's head once the sun shines and the season starts in my opinion.

BUT - can someone PLEASE explain why I have received this email from a well known agent in the Port?


Dear Sirs,

We can offer you as investment for rental in the
in the urbanisation of ........ two apartments on the
same floor (first).

This is just part of the email but what it clearly says is that agents are still pushing apartments as a buy to rent.
We know that no apartment unless registered and licenced as tourist can be rented out as a holiday let. We are also informed that it is impossible to be granted a licence for an apartment.

Now this might be clever on the part of the agent who might answer that it was for long term rent but come on... misleading or what?

It is well documented my feelings towards agents but this is clearly an email that is either encouraging illegal renting, trying to mislead OR they know something we don't know?

I wonder which it might be?

 

[allanglens]

Well it is all quiet on the licence front but does this mean the problem has gone away? I think not! It is just waiting to show it's head once the sun shines and the season starts in my opinion.

BUT - can someone PLEASE explain why I have received this email from a well known agent in the Port?


Dear Sirs,

We can offer you as investment for rental in the
in the urbanisation of ........ two apartments on the
same floor (first).

This is just part of the email but what it clearly says is that agents are still pushing apartments as a buy to rent.
We know that no apartment unless registered and licenced as tourist can be rented out as a holiday let. We are also informed that it is impossible to be granted a licence for an apartment.

Now this might be clever on the part of the agent who might answer that it was for long term rent but come on... misleading or what?

It is well documented my feelings towards agents but this is clearly an email that is either encouraging illegal renting, trying to mislead OR they know something we don't know?

I wonder which it might be?

If they are saying it has rental potential, well that is correct. If they are saying it has TOURIST rental potential, wrong. Assuming that my reading of Sparky's post of 12/3/13 is correct.

 

[eleanor]

Which is wht I said! BUT I think we all know what they really mean. At the least it is misleading.

 

[Belladonna]

Well as Eleanor predicted, the season is changing and the topic raises its head again! In the Majorca Daily Bulletin today;

Quote;
Tax office to crackdown on illegal property rentals

1


By Humphrey Carter

The tax office announced yesterday that it is going to target the digital black market this year, such as on line property rentals.This year, tax inspectors are going to be focusing on various areas but the most important is going to be the black market and within that remit comes illegal activity in the service and tourist sectors.
The principal aim is to crackdown on individuals, or businesses, using social media to rent holiday homes which do not declare any tax on their business activities. The tax office has made it clear that it is not going to be focusing on whether properties are being illegally rented out as holiday homes or not, but concentrating on whether the money earned is being declared and tax paid to the inland revenue.
Tax office sources said yesterday that it already has 200,000 websites in its target and teams of inspectors are already trawling through them to make sure that the individuals or companies are complying fully with their fiscal obligations.
According to the tax office, it will be concentrating on what it calls “double use software” which is specifically used to cover up and hide rentals and sales and manipulate company accounts in order to make false tax declarations.

Unquote.

As stated, this is a trawl through by the tax office for those not paying tax, NOT the concern about illegal renting, but once one can of worms is opened, they wriggle about!

 

[Sparky]

It never ceases to amaze me that people can be taxed on "illegal earnings" .

 

[Belladonna]

As they say Sparky, "They would tax the air that you breathe if they could!"

 

[Molt de Renou]

Getting a license is not that difficult, what is difficult is understanding what you need to do to comply as it is in Catalan.

I would therefore, as said before, go to a solicitor or a gestoria.

Once submitted and stamped, if, within a month, they haven´t been around to check out the property, you can legally start renting it.

If the owner is a EU national, the tax paid is 19% on the nett amount received.

In other words, if you rent the property for say, € 2.000 a week, and the expenses add up to € 400 ( agents commission, laundry, cleaning, gardening, water, electricity etc ), you will end up paying 19% on € 1.600 .

One thing to remember is the IVA ( VAT ) at 10%. You can either charge the client this on top of the weekly rate or include it, like most people do, in the quoted price, which in the case mentioned above would leave you a gross margin of € 1.818 from which you can deduct all expenses.

The IVA must be paid to the govenment every three months.

 

[Molt de Renou]

There is talk about a new law that will allow the owners of apartments to legally rent them out if the majority of the owners in the community give them their blessing.

This is basically so that the local govenment will be able to tax them, as their way of thinking, rightly, in my opinion, is that if you can legally make money and pay some tax for the trouble of doing it, why not.

 

[El Gordo]

There is talk about a new law that will allow the owners of apartments to legally rent them out if the majority of the owners in the community give them their blessing.

This is basically so that the local govenment will be able to tax them, as their way of thinking, rightly, in my opinion, is that if you can legally make money and pay some tax for the trouble of doing it, why not.

Sparky has posted this on another thread:
" I don't know if this will change the law on rental restrictions but below is a rough translation of a report in the UH"
El Defensor del Pueblo denuncia trabas al alquiler vacacional en Baleares » Local » Noticias » Ultima Hora Mallorca

Quote:


The Ombudsman denounces restrictions to vacation rentals in Baleares.

The Ombudsman has reported that some communities, such as Catalonia and the Balearic Islands, are adopting a policy that "unjustifiably curtails' freedom of private owners to offer their homes as a tourist rental. In the annual report of the Ombudsman 2015 released Thursday, the institution warns that the current regulation of market rental housing allows the autonomous communities are those that legislate on the subject. in particular, the Ombudsman has referred to the fine of 6,000 euros to the general direction Catalonia Tourism imposed a homeowner to skip the process of declaration of responsibility. he also stressed the rules of seasonal rental Balearic Islands, which prevents owners of apartments to rent them for tourism purposes, except cede this holding to the company that markets the other units in the building. the Ombudsman believes that "no public interest grounds are appreciated 'for this regulation, and recommended that individuals be permitted in such cases offer their property as a tourist rent" no restrictions other than those set companies. "

 

[Molt de Renou]

Yes, I had seen this, but they will be passing the buck to the owners of the apartments.

As far as I understand it, at the moment it only takes one owner to object to having short term rental apartments in the building for it to be illegal.

The new law will remove the power from only one owner to the majority of owners.

In other words, if say in a building of 20 apartments, 12 owners vote to allow anyone who so wishes to rent theirs short term, the other 8 will have to accept the ruling.

 

[Sparky]

Hopefully things are going to get easier for owners.

Below is the link to a report in the MDB here :-

Balearic parliament to tackle holiday rentals » Balearics » News » Majorca Daily Bulletin.

 

[Sparky]

According to the MDB there will be regulation on holiday rentals within six months. Read the story here :- Regulation on holiday rentals within six months » Balearics » News » Majorca Daily Bulletin.

 

[Sparky]

And of course the hoteliers are demanding stricter rules .

Here is a report from the MDB :- Hoteliers demanding tighter control of private holiday accommodation » Balearics » News » Majorca Daily Bulletin