Our Spanish Dream - Part 24: Lessons from the First Season

Dave had worked in the boat hire business and in a four star hotel. We’ve stayed in great hotels and rented cottages and villas ourselves. So when kitting out our house we considered what we would like if we were renting - a real home from home in comforts but with a touch of Spain.

So what did we learn from our first season of renting out house-by-the-pool.com? Well, first was that most renters are lovely people who appreciate a well presented comfortable property and respect it, the community and the key holders. Most! There was a small element that did none of these. When we came to do the inventory at the end of summer we discovered some were happy to take ‘mementoes’ of the house home with them and some were happy to claim they hadn’t broken anything. 

Why did they want our towels or our pillow cases? Glad to say it was a minority. A couple of others broke a glass or mug and replaced it with two, which was kind and unexpected.

What we hadn’t realised when we first began advertising the house was that we would be able to fill it ten times over in August, so we could be fussy about who we had stay. We had already decided no hen, stag or student parties, but from here on we spoke to everyone and asked questions. The next year we turned away two or three enquirers and still filled the season. If a person wasn’t respectful to us the chances were they wouldn’t be respectful to our keyholder, our neighbours or the house.

That first season was a steep learning curve. We discovered guests like and expect British TV, internet access, a games console (and games), air conditioning in every room, a coffee maker and a hair dryer. They don’t like sweeping the floor, taking out the rubbish or using their own beach towels instead of the bathroom towels on sand!

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

 

Our Spanish Dream - Part 23: First Guests

So with the first bookings in the diary we sent our son and his girlfriend out to the house in the Easter uni break to try out the house.  We arranged with our keyholder that he would be treated just as a paying guest, and in return for his free holiday he had to do a full assessment of the house and set-up.  Amazingly he was very complimentary on what we had done and the information we provided.  He was able to make a few suggestions.  That first year we also had two friends visit, one with her grandchildren and one with her teenage son.  The feedback we received was really useful and we were confident we were going about things the right way.

Advertising is an expensive business and we trialled several online sites.  Costs for these varied from several hundred pounds a year to free, and completing all the information for each site was time consuming.  In the end our bookings came almost entirely from just two of the sites, none at all from the free ones.  It pays to use a site ranked high in the search engines.

We also used, and still do use, our own web site with lots of extra information www.house-by-the-pool.com

Since those early days we have made many changes, sought feedback from every renter and listened to suggestions.  We have changed most of the furniture inside and out, installed air conditioning in every room, replaced kitchen equipment, installed satellite TV and wifi internet and much, much more.

Finding the right keyholders is critical and has been a long-running issue.  We’ll cover that in other posts.  We changed fiscal/legal representation as our original firm were insistent that we didn’t need to declare our rental income in Spain as nobody else did.  Our new representation were happy to help us stay legal and help with the tax declaration.

 

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

 

Our Spanish Dream - Part 22 Other People's Errors

    

I could write a book on this one!  Perhaps the most common error is buying in the wrong place.
We had friends who visited relatives living an hour's drive inland and were shown a plot of land by a local on which they could build their dream home.  Assuming they had just put down a deposit, I suggested they talk to their lawyer because if the plot was outside the village they would need 10,000m2 to be able to seek planning permission to build a property in that area and the plot was 6,000m2.  They didn’t know; they had believed the local man and paid for the plot in full in cash while on holiday!  They were under the impression that the Notary would advise them about planning matters but the Notary’s job is to check the sale is legal, not advise the buyer.  They hadn’t used an independent solicitor and they hadn’t used a property finder.  And despite having planned to be part of a large ex-pat community in the sun they had, on impulse, bought a large ‘goat field’ up a mountain where it snows for two months of the year.  Several years on and they still hadn’t re-sold the plot.
Friends of my parents sold their Spanish house and had to re-buy in a hurry.  They bought a place with a great view but no amenities and the wife doesn’t drive.  Buying a rural property is fine if you are in good health and both drive.  The plots are large and often have citrus or olive trees, or old vines to tend.  If your health fails or you become unable to drive you may find selling your rural property takes a long time.
The rules are simple: talk through your needs/wishes with someone experienced in Spanish property, take your time to assess the suitability of the properties you like, use an independent lawyer (absolute must), do your homework and think of the long-term.
At Spanish Dream Property we love helping people find their right dream property.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 21: The Rain in Spain….

….falls mainly in the mountains!  Don’t be fooled into thinking that all Spain is wonderfully warm in winter.  There are ski resorts in the south of Spain but not in the south of England.  Within Europe, Spain is second only to Switzerland in the percentage of its land that is covered by mountains.  Madrid is the highest capital city in Europe.  The Costa Verde (Green Coast) is so-called because it has lush green countryside, so it rains - a lot.  Much of Spain’s mountainous interior is pretty empty, unless you count wild boar and birds of prey.

So if you are looking for winter warmth you head for the south or south eastern coasts.  If you like to wear your winter woollies you go inland or north.  The mountains are beautiful and majestic; in the summer they are bathed in sunshine, in the winter often shrouded in cloud, the higher regions white with snow.  We visited Granada in May, it was 25 degrees near Malaga but 15 degrees in Granada, above the city the peaks still draped in winter’s white coat.  In January the Costa De La Luz on Spain’s south west coast can be battered by Atlantic winds, and the storms of the Bay of Biscay can wreak havoc with the ferry timetables into Bilbao in northern Spain.

So, my message?  Choose wisely where you buy.  The Costa Blanca to the Costa del Sol are popular destinations for ex-pats seeking the sun for obvious reasons.  They don’t suit everyone and in places are very built-up or commercialised, but you can still find a quiet corner or buy close to one of the numerous national parks if you don’t want tourists. 

But the fact is that most ex-pats seek out other ex-pats and like to be able to buy a box of Tetley tea bags and a newspaper where the clues for the crossword are in a language they understand.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 20: Doing The Sums

    

So, you have managed to save / beg / inherit / borrow for the dream holiday home in the sun and you have settled on Spain as your location.  What next?  Buying in Spain is not quite like buying in the UK.  The biggest shock to most people is the tax payable.  IVA (Spanish VAT) is paid on new properties for which levels are set by central government and at the time of writing (early 2015) the rate is 10%.  If the property is re-sale then Transfer Tax (ITP) is due instead, for which the rates are set by regional government, and these can change with very little warning.  We find property in the Alicante and Murcia regions.  At the time of writing the tax rates are 10% and 8% respectively.  Cheaper properties are not excluded from this tax.

In addition you will need to allow for legal costs – your independent solicitor (do NOT use an in house one!), Notary fees, Land Registry and other sundries such as your NIE’s.  These can amount to 3,000 to 4,000 euros.
Spanish mortgages were scarce during the property crisis but are now available again to those meeting strict lending criteria.  Taking out a mortgage in Spain is another expenses business, usually costing several thousand euros.
You may have heard of people receiving additional tax bills after buying a house because they got a bargain price.  This needs to be discussed with your solicitor at the time of purchase as there is insufficient room to cover the matter here.  You are welcome to contact us if you are concerned.
Because of the sheer costs involved in buying and selling in Spain it is very important that you get the choice of property right, buying the wrong property or in the wrong location is a very costly mistake.
That’s where we come in – Spanish Dream Property helps you get it right first time, and that matters!

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 19: Blood, Sweat and Broken Bones

We arrived for February half term week 2007 with giant bags; you could still fly with 25kg bags then without penalties.  We had sourced loads of discounted goods for the house and set to work.  Although we had cleared most of the rubbish on our previous trip, the serious sorting and cleaning started here.  With our web site up and running and our first bookings taken we needed to get it finished.

We scrubbed and cleaned every surface and cupboard.  We threw things out - a broken tv hidden in a wardrobe, torn and old bedding, giant paper fans that had been hung on the walls, (the only extra décor in the house), a broken hi-fi cabinet, oddments of cutlery, chipped plates and glasses, old mugs, old towels and endless sundry items.  The marble surround on one of the wash basins was broken so a new one ordered at a very reasonable price.  We found some good value DIY shops, second hand places and discount shops.  The washing machine was broken and even still had wet and rotting towels stuck inside it!  The new one was purchased and to my amazement the shop was happy to take away the old one for a very small fee (complete with towels!).

We fitted curtain rails, hung voiles, hung pictures, bought sofa throws, lamps, mugs, crockery, glasses, cutlery and bedding.  We rearranged what little outside furniture there was and bought more – it was plastic but all we could afford.  (It would be replaced over time.)  We scrubbed the balustrade, terrace, balcony and solarium.  We painted grills.  We stayed up late into the night and rose early to carry on.  We had to get it finished.

Finally, on the final evening it was ready to photograph properly.  We had packed already as we were leaving early the following morning and had taken the outside shots earlier.  Dave moved from room to room taking photos.  I moved the cases out of the way for a photo of the downstairs bedroom to the doorway of the shower room.  Dave took the photo, took a couple of steps back, and turned without looking, lost his balance and fell over the small case into the shower room!  He put his free arm out to save himself but hit the side of the wash basin on the way down.  He was badly winded and in pain all night.  It was only once we were back in the UK and he went to the doctors that he discovered he had broken two ribs on the wash basin!

 Before                                                                 After

Our Spanish Dream - Part 18: One week, two weeks...8 weeks!

Despite my parents, Aunt, Uncle, Grandfather and his partner Doreen having lived in Spain for many years, (in the case of Doreen and her children, since the 1960’s), we still managed to underestimate the Spanish red tape!  Another two attempts at completing the purchase were attempted. The lady’s new passport was certified in England as definitely belonging to her, and a copy of the certification was sent to Spain together with certified copies of her birth, marriage and divorce certificates and all produced by her solicitors, but still the Notary would not agree for the transaction to take place as the Power of Attorney was in the wrong name!  There was only one way the sale/purchase was going to happen and that was by the lady attending in person to prove she was one person, not two people. 

This put yet another delay on the proceedings as she needed to arrange time off work and flights etc.

Eventually on 15th December 2006, with the lady showing up with every piece of proof of identity she could think of with her, the Notary accepted the paperwork and the house was ours - eight weeks and one day after anticipated, but it had happened.  We finally owned our own house in Spain!  What a Christmas present!

Our next visit was already planned for February.  We had taken loads of photos on our previous visit ready for marketing the house as soon as we could for rentals in 2007.  There was much to do.  We had chosen the name for the house and web site when we found the first house in Cabo Roig, but it fitted this one just as well 

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 17: Not Today Thank You

The morning of Thursday 19th October 2006 dawned bright and early for us.  Together with our youngest son we headed south with smile on our faces and expectations in our hearts.  We arrived at the office and were greeted by our agent.  There was a complication!

The owner had inherited the property from her father, in his Will she was called by her married name and all paperwork had been prepared in that name.  There had been an authorised copy of a passport in her married name made and filed but the passport had since expired.  A copy of the new passport had been sent BUT the lady was divorced and had since reverted to her maiden name, so the name on the new passport didn’t match any other documents.  It was highly unlikely the Notary would agree for the sale to proceed without proof that the two names were for one person.

In Spain a woman does not change her name when she marries, the name you are born with is the one you keep all your life.  Everyone has two surnames, each child takes their first surname from the mother’s last surname and the second surname from the father’s last surname, (it’s simpler than it sounds!).  So the Spanish Notary was quite baffled as to why this woman changed her name on marriage and then changed her name back again with no need for any official deeds.  So instead of signing for our house we reluctantly agreed to give power of attorney to our solicitor to complete in about two weeks’ time after all the proof required had been sent to Spain for the woman’s identity.

Afterwards we went over to the house.  The lady owner had agreed that we could use the house as planned the next week anyway.  We deposited the bags we had taken with us and went for a swim in the pool before driving back to Mum and Dad’s.  It was disappointing but we weren’t worried. 

Oh, how we had underestimated Spanish red tape!

.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 16: Mum and Dad's 50th

20th October 2006 was my parents' Golden Wedding Anniversary.  It was planned for ourselves, our youngest and my sister and brother-in-law to spend a week with them and share in the celebrations.  With not enough room for all five of us to stay comfortably at their villa we stayed in a friend’s three bedroom apartment up the road.  The main celebrations were on Friday evening with a diner and dance at a local restaurant for around 60 guests, preceded by a champagne lunch for family and a couple of close friends.

We arrived on Wednesday 18th with the plan to travel south and sign the final papers for buying the house on Thursday, then back to Mum and Dad’s that night for the celebrations on Friday and church blessing on Sunday, before heading south again Monday to start the big clean on our new house.

Lunch on Friday went well, with Dave assigned to the barbecue, and lots of laughter and presents. Mum made a Bucks Fizz for our 13 year old son, which he claimed it was very  nice and tasted of bananas.  Confused I looked on the juice cartoon to find Mum had accidently bought orange, grape and banana juice!  The evening meal went well with Mum and Dad being surprised by a Limo collecting them.  Dad gave a speech, their friend and Pastor gave a speech, the band played all night and everyone got very merry.

Sunday morning was a lovely service with a blessing.  My Dad had recently been given the all clear from his throat cancer and that added to the specialness of the occasion.  It’s a lovely memory to have of a time of such joy and laughter.  The coming years would make that time extra 

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 15: The Offer Is Accepted

Date Created: 25.02.2015

It took three days but eventually the agent talked the vendor into accepting our offer. I’m not sure who was most excited, us or our exhausted estate agent!  He must have worked very hard to talk her round.  We headed back south for the day to sign papers.  It had been planned to take the family with us so they could ‘approve’ the house, but the youngest was recovering from mild food poisoning, (nothing to do with my cooking!), so the older ones looked after him and they stayed north for the day.  We agreed with the agent to take the family down two days later, complete with their swimming gear, to spend a couple of hours at the house.  A good job we didn’t have a mileage restriction on the cost of the hire car, two hours each way and three visits meant we had spent 12 hours of our holiday just driving backwards and forwards between Moraira and the Orihuela Costa.

While the children swam we chatted to neighbours and made very long lists for what jobs needed to be done and what items we would need to buy.  I’m glad to say that all three children were more than happy with the final choice, and it really did meet all the criteria on our wish-list.

With the holiday drawing to a close we drove back to Mum’s to spend our final day with them. Our suggested date for completion was in ten weeks, timed to coincide with an already planned visit in October to celebrate my parents’ 50th wedding anniversary.  It would be tight but there was no reason why it couldn’t be done, our finances were arranged and the lady who had inherited the house just wanted to be rid of the responsibility. This time we were convinced it would happen, we couldn’t let this one go.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 14: Aqua Natura - Swimming With Sharks

After our high flying escapade at the Terra Natura we moved to the neighbouring aqua park.  We had booked a session entitled ‘swimming with sharks’.  As one of the least adventurous people in the world I was again wondering why I was there.  We were handed life jackets, googles and snorkels, that latter two being items had had never worn, or even wanted to wear, before.  Dave was somewhat put out when they handed him a buoyancy aid instead of a lifejacket, telling him there were not any jackets large enough for his ample girth!

As the youngest is severely visually impaired he held onto his Dad as we walked into the pool and laid down on the salty (and to me, quite dirty!) water.  There was a slight current which moved us slowly along, rather like a lazy river.  I felt instantly that I would rather be in a clean lazy river instead of ‘shark infected waters’.  I struggled with the snorkel but got there in the end, whereas the children all seemed to take it in their stride.  It was certainly a weird feeling having a shark twice my size brush up against me in the water.  We had been assured that they were all strict vegetarians!  I had no idea until then that there were vegetarian sharks.   The sharks and fish came in all shapes and sizes, all totally unfazed by these odd creatures floating above them.  It is an experience I would recommend if you get a chance.

From there we moved onto the water slides, shoots and rides to finish the day with shrieks and laughter.  For anyone considering a trip to a water park, and there are quite a few dotted around the Costa Blanca, I’d like to give you one very important piece of advice – make sure you continually recover yourself in waterproof sun screen and wear a hat in between rides.  Constantly dipping yourself in water fools you into thinking you are not burning, but you will.  If you are in Spain for two weeks leave this trip until your second week.  Tomato is not a good colour on anyone.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com   Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 13: Terra Natura Zip Wire

Date Created: 11.02.2015

We had a family trip to Terra Natura in Benidorm.  We walked around the safari area, divided into the continents of Europe, Asia and America. 

Then we headed for the zip wire.  We were taken by car up a windy road, it felt as if we were on the top of the mountain by the time it stopped.

 Why on earth had I agreed to this?

The zip wire is 180 meters high and 400 meters long, (that’s roughly a quarter of mile long so would take the average person 4-5 minutes to walk the distance on the flat), and at the time was the longest zip wire in Europe.  17 year old son went first, he was really keen, was strapped into the harness, pushed off and disappeared out of sight.  Daughter, next, seemed remarkably confident as she swung herself over the ‘abyss’ and got smaller and smaller before she too vanished from sight.  14 year old son, technically blind, was as confident as his brother.  He couldn’t understand my concern that I couldn’t see the far end of the wire, he had spent his life unable to see things beyond the end of his nose so what was my problem?  Off he went, with a massive smile on his face.

I was physically shaking as I got into the harness, was I totally out of my mind?  I don’t like heights, I don’t like speed and I don’t like not having my feet on terra-firma.  As I felt myself move forward I shut my eyes tight and started to scream!  I ran out of breath so stopped screaming, dared to open my eyes only to discover I was flying high over a herd of elephants, so shut my eyes and screamed again!  I was still shaking when Dave arrived down the wire.  Did I have a great sense of elation at having conquered my fear of height, speed and dangling in mid-air?  Not at all!  I just wanted to kiss the ground and have a calming cuppa.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com   Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 12: Found at Last

With the house near former work colleagues still in our mind we started the final day of this search.  We had come over to Spain for a two week holiday, planning to spend it in the house we had lost, so instead had stayed near Mum and Dad in Moraira.  We had left our teenagers in their care while we went house hunting so did need to go back to rescue my parents soon.

Our poor estate agent had not had an easy ride with us.  He said there was a property that had literally just become available, it was 9 years old, had been bought off-plan by a gentleman who had intended to retire there after working for years in the far east and only visited briefly twice a year, until three years ago when he’d become ill and had died the previous year.  His daughter had no interest in the property and was selling it ‘as seen’ – she had visited once to take personal effects and that was all.

We parked on the road and walked to the end of the private driveway. The gated pool garden was at the end and the house right next to it, slightly raised up.  It was the best view we had ever seen of a communal pool from the terrace.  It was the largest house we had viewed.  Three large double bedrooms, two bathrooms, large lounge, solarium with sea views, under a mile from the beach and less than 10 minutes walk to the shops.

Inside it was dusty, unloved and neglected.  We barely spoke to each other as we walked around.  Usually I made notes about the properties and then we made our final score out of ten based on those notes.  My piece of paper said just three words – ‘needs a clean’!  Our hearts had been stolen.

As always there was a catch, it was way over budget!  We already had our finances arranged so we made the maximum offer we could, a price the agent didn’t think would be accepted.  So we left it with him and headed back to Moraira for the second week of our holiday, determined to enjoy it whatever happened.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com   Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 11: Chance Encounters

The decision to buy a house when we did was actually our 25th wedding anniversary present to each other, so losing our first choice of present was obviously disappointing.  But I’m a great believer in things happening for a reason and if we had lost that house there must be a better option waiting for us somewhere.

In the sweltering August sun we recommenced the impossible search.  The first two days produced nothing of interest.  By now we had viewed over 40 properties – an estate agent's worst nightmare!  However had they have paid more attention to our requirements that list would have been halved.  The third day we returned to an area where we had previously seen a three bedroom house.  We had liked the house but not the location.  This house was identical but in a slightly different location.

“I just need to collect the key from the neighbour” our agent said.  The neighbour turned out to be a couple who were former colleagues of Dave and people I knew slightly as we lived near each other until they had moved.  It’s a small world!  We knew they had moved to Spain after retiring a couple of years previously but didn’t know exactly where.

The house was great, the location pretty good but there was still something holding us back.  That evening we returned to the street and had a walk around, then headed for a local bar/restaurant where to our surprise Dave’s former colleagues were having a drink.  Just to make things more interesting another retired former colleague was joining them for the evening!  The bar was holding a quiz night so we formed a team and called ourselves ‘Chance Encounters’.  We didn’t win but we did have a lovely time.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com   Bev has family in Spain and they intend to move there full-time in a couple of years.

Holiday rental licences in Spain - region-by-region

19 January 2015

by Louise Brace

in Finance & legal

Updated 23 January 2015

 

  3

It’s been 18 months since changes to the LAU (Spanish Tenancy Act) were introduced, affecting Spanish holiday rentals. In this time Spain-holiday.com has been working its way across the 17 autonomous communities to find out exactly how the legislation has been interpreted and what a holiday homeowner should do to apply for their licence. 

Not all regions have rolled out the option to apply for a licence; the high volume tourist regions of Andalusia and the Canary Islands have draft decrees on the table, but as yet no date for publication and Murcia is yet to discuss the subject of regulating holiday rentals in the region. 

In this article we report on the current situation for holiday rental licence application in each region. We’ll keep the article updated as we receive information. You’ll find links to articles on regions where licence guidelines are available. The list runs in alphabetical order. 

 

Andalusia (capital Seville)

Andalucia is due to publish its version of a legislation for holiday rentals in the first quarter of 2015. The draft decree, which was published last June, does allow owners to offer a bed and breakfast service and single room occupation, but insists on Wifi, air conditioning and heating. You can read the latest update for holiday rentals in Andalucia here.

Aragon (capital Zaragoza)

In October 2013, the Aragonese regional government approved changes to the regulation for holiday accommodation in the region. Introducing ‘Viviendas Turisticas’ as a regulated tourist accommodation type, for which you need to apply for a licence. As with most regions, to apply for your licence you will need to present a Declaración de Responsibilidad (Declaration of Responsibility).

The local government is actively pursuing owners who are operating without a licence with fines starting at 600 € and reaching up to 90,000 €. If you need to apply for a holiday rental licence in Aragon, you must follow the guidelines set out the regional decree for Viviendas Turisticas (holiday rentals) (Spanish text).

Asturias (capital Oviedo)

In Asturias you can apply for your licence online, or at the local/regional Department for Tourism. Holiday homes are classified as Viviendas Vacacionales or Casas de Aldea (private country homes). Apartments are not considered within the decree for Viviendas Vacacionales and you may not offer single room occupation. Read more about how to apply for your holiday rental licence in Asturias. 

Read more about How to Apply for your Holiday Rental Licence in Asturias.

Balearic Islands (capital Palma de Mallorca)

The Balearic Islands government has managed to complicate their regulations for holiday rental accommodation. Here you can apply for a holiday rental licence if you own a villa or townhouse, but not if you own an apartment. The ruling has alienated many owners and alienated many holidaymakers.

We understand the regional government is preparing a new decree that will further regulate the industry on the islands, but we don’t expect leniency; we understand one of the prerequisites will be for the owner to get permission from their neighbours before they can apply for a licence. A condition that owners in the Canary Islands are also contesting in the soon to be published decree.

Find out what guidelines you need to follow to apply for your Holiday Rental Licence in Mallorca, Menorca and Ibiza. 

Basque Country - Pais Vasco (capital Vitoria)

The regional Basque government are working on a new tourism decree, which will include regulations for holiday rentals in the region. The current decree excludes owners from renting out a single property, stating you must have two or more properties to promote tourist accommodation activity. So owners would currently need to promote their holiday rental through an agent. We understand the draft decree allows owners to offer single room occupation, limited to a maximum of six bedrooms (12 beds) 

Canary Islands (capitals Las Palmas de Gran Canaria and Santa Cruz de Tenerife)

The Canary Islands regulated holiday apartments back in 1995, restricting the majority of private rentals operating in the region. Last year a petition with close to 20,000 signatures, was presented to the regional government, by Canarian association ASCAV, provoking a reexamination of the current law and a promise to regulate the industry. A draft decree was published by the Canarian government in December 2014, which wasn’t the positive step forward owners and the industry had hoped for. The decree contains three central requirements, that will greatly limit the number of owners who will be able to apply for their licence, 

On January 13th, ASCAV presented their plea against 22 recommendations currently highlighted in the draft decree. The plea is in the hands of the Vicepresident; with the date for final review and publication set at the earliest March, and at the worst, after the general elections in May.  Read the latest article on holiday rentals regulations in the Canary Islands.

Cantabria (capital Santander)

On the 22nd March 2014, Cantabria amended their Tourism Decree to regulate the short-term holiday rental market for Viviendas Turisticas (private holiday homes). This terminology now ceases to exist in the region and owners should re-register their holiday rental as an ‘Alojamiento Turistico Extrahotelero’. The foundations for applying for the registration and licence are one of the strictest we have come across. Read our article on how to apply for your holiday rental licence in Cantabria.

Castile-La Mancha (capital Toledo)

We spoke to the Regional Tourism Department for Castile-La Mancha who confirmed that there is still no option to apply for a licence in the region. We were informed that although they are studying a change and, indeed would welcome a change, there is no definite decision made as yet.

At present you are unable to obtain a licence for a private holiday home in the region. If you have a Vivienda Rural (Country Home) you may be able to apply for a licence as a Casa Rural, but you would need to take your application to your local tourism office and ask them to study your case. We will keep you informed of any updates in the region.

Castile and León (capital Valladolid)

Again, the law in Castile and Leon, does not currently allow private homes to be rented out for tourist purposes. A homeowner may rent their property out short-term, according to the LAU, but it must not be advertised through tourist and holiday advertising channels.

Catalonia (capital Barcelona)

In Catalonia, the legislation allowing private homes to be used and advertised for tourist purposes, was introduced at the back end of 2011 and the Catalan Government are organised with the administration and distribution of licence applications. One issue is the inconsistency in licence taxes being issued by each local town hall. There is no set fee, with each town hall setting its own price. And in Barcelona city they suspended the issue of licences back in May 2014, whilst it reestablishes guidelines and deals with illegal rentals in the city. 

We recommend you read the following article on How to Apply for your Holiday Rental Licence in Catalonia. There are various links in the article to updated posts on Catalonia.

Extremadura (capital Mérida)

Extremadura is another community, which does not currently have specific regulations in place for private homes to offer short-term holiday accommodation. If you want to rent your property out, you must do so under the LAU and again without promotion as tourist accommodation.

Galicia (capital Santiago de Compostela)

The law in Galicia allows a private owner to rent their home out as tourist accommodation. An owner will  need to ensure their property meets with the guidelines as set out in the regional decree, there is an application fee to pay and of course, you must declare your earnings to the tax office. Find outhow to apply for your holiday rental licence in Galicia. 

La Rioja (capital Logroño)

La Rioja does not currently allow private homes to offer short-term holiday accommodation. We will keep you informed of any updates in the region.

Community of Madrid (capital Madrid)

Madrid introduced regulations at the end of July 2014. Main points to watch out for in their holiday rentals decree include the five day minimum duration and single room occupation is not permitted. Find out more about holiday rentals regulations and how to register your property in Madrid.  

Region of Murcia (capital Murcia)

We spoke to the Institute of Tourism for Murcia back in March 2014. They told us that it’s not currently possible for an owner to offer their home as individual tourist accommodation. However, as the region is currently revising its general Tourism Act, there is a possibility that they could introduce a ruling to allow private holiday accommodation to operate in the future. This information hasn't changed since our last update.

Navarre (capital Pamplona)

In Navarre, or Navarra, you can apply for a licence under two categories: 

• Casa Rural - if your home is built in the traditional architectural style
• Apartamento Turistico -  whether you have an apartment or bungalow, chalet or villa (Vivienda Turistica) in Navarra, you should apply under the category ‘Apartamento Turistico’ for your licence. 

You need to make your licence application in the principal Tourism Office in Pamplona. There is no fee to apply, but once your application has been processed and sent to your local ayuntamiento, you may be requested to pay a fee for registering details with the local authorities. You must include your licence details in any advertising you do for your holiday rental.

The regional tourist board have excellent information on how and where to register your holiday rental: 

Visit Navarra's Registro de Turismo and click on the Apartamentos y Viviendas Turisticas link to find out how and where to apply. You can then visit the 'Normativa' page and click on the link ‘Notas sobre el Decreto Foral de Apartamentos Turisticos to download an FAQ on the process. The information is available in Spanish only.

Valencian Community (capital Valencia)

A registration system was introduced in 2013, allowing owners and agents to register their holiday rentals in Valencia, the process was recommendable but not compulsory. However that changed at the beginning of January 2015 and it is now obligatory to register your property with the Registro de Empresas, Establecimientos y Profesiones Turística. You can read all about How to Apply for Holiday Rental Licences in the Valencian Community. 

In our continued commitment to keep owners up-to-date with the new legislation for holiday rental licences in Spain, we’ll keep posting updates to this article as we receive them, so please keep checking back. If you are aware of changes or updates in your region, or have further information, please write to me at: louise@spain-holiday.com.