The Spanish parliament is currently considering new legislation to restrict the number of private holiday lets. Blatantly loaded in favour of the hotel industry, the law would require private holiday-lets to adhere to the same health and safety standards of the hotel industry.
Although, it could help limit the amount of tax evasion in this sector, there is a possibility that it could backfire, as private rentals bring in much needed revenue, and denied the option of private rentals, holiday makers may simply choose to stay away.
At the moment, anyone can rent out their home on a ‘short term’ basis as long they pay the necessary income tax. Owners are concerned that a high proportion of private-lets won’t measure up to strict hotel regulations, which would effectively cut off a vital source of income for many of the 6.2 million unemployed people in Spain. Figures produced by La Caixa, show that out of 1.1 billion overnight visitors to Spain, more than two thirds choose to stay in private accommodation.
David Tornos president of Asotur, a tourist rental management association in Madrid, was quoted in The Telegraph (a UK national newspaper) as saying, “This is an attack on civil liberties, limiting the use of private property and the freedom of tourists to choose how they want to spend their holidays. Passing this law could deal a death blow to a growing sector that contributes enormously to the economy,”
At the moment, all we can do is wait to see. Watch this space!
Perez Legal Group can provide you with updates on the laws affecting rental property in Spain. Visit the website atwww.perezlegalgroup.com to sign up for the newsletter to receive the latest updates direct to your inbox.