Property and Legal Advice

Information on buying & selling a property in Spain plus legal advice on the key issues of living and working in the Axarquia

RURAL HOLIDAY ACCOMODATION

According to the Spanish Law 20/2002, approved on January 29, 2002, by the Junta de Andalucía regarding Tourism in Rural Areas, if you own a property in the countryside and want to rent it, you must comply with the following conditions:

· Properties are considered to come under this law if they are located in the countryside in an area where the population centers do not exceed 20,000 inhabitants, and when they are not on the coast.

NOW YOU CAN CLAIM PLUSVALIA TAX

News about the “Plusvalia Tax” charged by Municipal Town Halls has been flooding the newspapers and the television.
 
According to the Spanish Constitutional Court judgment on 16th February 2017 the “Plusvalia Tax” that has been charged on real estate transfers where no enrichment of assets has been achieved, is considered to be unconstitutional, as it cannot be justified that it concurs with its purpose when there is no real increase in the value of the land. 
 
Below we itemise the basic points relating to this Municipal Tax:- 
 
What is “Plusvalia” and how is it calculated?
 
It is a tax based on the increase in the value of urban land. It is a Local Council Tax and is calculated using the cadastral value, which appears on the IBI (rates) receipt. Even if you own an apartment in a block where you have no land, you would be liable to pay proportionally for your share of the land on which the whole block or urbanization is built.

TOURISTIC RENTAL TAX OBLIGATIONS

At the moment the rate for VAT applicable for tourist Rentals is 10%. The application of this rate depends upon the complementary services that are offered.

We can take as a reference the following services expressly determined by the General Directorate of Taxes to be considered as complementary Services that are directly related to the hotel industry: 

· Weekly cleaning inside the accommodation. 

· Weekly change of linen and bedding.

On the contrary, the following services are NOT considered to be directly related complimentary services:
·Entrance and exit cleaning service.

· Linen and bedding change service provided only at entrance and exit.

· Cleaning services for common areas (i.e. foyer, stairs, and lifts), nor in the urbanization (i.e. green areas, entrances, and pathways).

TOURIST RENTALS

At the moment the rate for VAT applicable for tourist Rentals is 10%. The application of this rate depends upon the complementary services that are offered.

We can take as a reference the following services expressly determined by the General Directorate of Taxes to be considered as complementary Services that are directly related to the hotel industry: 

· Weekly cleaning inside the accommodation. 

· Weekly change of linen and bedding.

On the contrary, the following services are NOT considered to be directly related complimentary services:
·Entrance and exit cleaning service.

· Linen and bedding change service provided only at entrance and exit.

· Cleaning services for common areas (i.e. foyer, stairs, and lifts), nor in the urbanization (i.e. green areas, entrances, and pathways).

· Technical assistance for any repairs carried out for plumbing or electrical faults, glass, lock, or appliance breakage or repairs.

DO YOU WANT TO BE A FULLY FLEDGED SPANISH CITIZEN?

One of the ways to become a Spanish citizen is through the acquisition of Spanish Nationality by residence, for which a certain period of time of legal residence in Spain is required. In general the minimum time required is 10 years. Although there are also special cases for which a shorter period is required, i.e.:- ·Five years: people with refugee status ·Two years: for nationals from Iberia-American countries, Andorra, the Philippines, Equatorial Guinea, and Portugal or of people of Sephardic origin. ·One year: in cases where a very close link with Spain can be proved and legally recognized.

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