Death knell rings for unregistered tourist properties in Spain

THE Euro Weekly News recently revealed to readers how the authorities are cracking down on people who rent out their homes in Spain to tourists. 

A new law has been passed with significant consequences for those in Andalucia, bringing the region into a wider regulatory framework that includes the Valencian and Balearic provinces.

Put simply, it requires landlords who rent their properties to tourists to officially register with the local government. They will then be compelled to make any necessary adaptations to their home to be in full compliance, or face severe fines. 

Harsher in its scope and putatively stricter in its enforcement, the decree approved in Andalucia on February 2 has acute implications for property owners who rent to tourists. 

400,000 is the number of tourist rental beds estimated by the Junta of Andalucia currently undeclared for tax purposes.

This encompasses those in regions, including Murcia, which  remain tentatively untouched by an ever-tightening legal apparatus.

 As ever, the devil lies in the details, therefore all readers who are concerned that they may incur the wrath of the authorities would do well to consult with local representatives, property experts and lawyers to ensure that they are well prepared. 

Different regulatory systems are now in force across separate autonomous communities, but the situation in Andalucia serves as a useful illustration of where the future of property regulation is headed across the country. 

While many in Valencia and the Balearics may have adapted to the new system of registering tourist properties, the draconian penalties allowed for in the Andalucian statute should be a warning to those who haven’t yet registered, and feel the bark of the law is worse than its bite. 

Those in Murcia should prepare for similar regulations to take effect in the near future.  

The incentive for the crack down on tourist rents is a combination of pressure from the hotel industry, a desire to harmonise systems, and the lure of more taxes over an, until now, underground economy.

With the weight of the national Citizen Security law behind the new strategy in Andalucia, it appears clear that a concerted effort to clamp down on tourist rentals will now persist with added vigour.  

Related News and readers comments: “Landlords across Costa del Sol could face colossal fines“.