Happy Christmas from the Spanish Ministry of Finance

[Charlie dont surf]

This email sent out today to everyone who advertises a property on a holiday letting platform 

Dear owner,
We are contacting you to inform you that, in accordance with Royal Decree 1070/2017, of 29 December, it is our duty to provide the Spanish Tax Administration with the following information regarding the properties located in Spain that you are advertising through HomeAway for tourist purposes:
a) Your name and surname (or company name) and your Spanish ID or Passport number (including the passport country of origin), specifying whether you are the owner of the property or not.

b) Your full address and the cadastral reference of your property.

c) The first and last name and the Spanish ID or passport number (including the passport country of origin) of the travellers who made their bookings through HomeAway.

d) The duration and starting date of each stay.

e) The total amount received per stay.

HomeAway is obliged to present this data for the year 2018 onwards. As such, we would ask you to click on the button "Fill in the form" below and enter your details before January 11th 2019. Please make sure you provide the following:
Your Spanish ID or passport number (including the passport country of origin).

The complete address of your property.

The cadastral reference number of your property.
Please remember to select the appropriate box indicating whether you are the owner of the property or not. If we don't receive a reply from you, we will assume that:
If you're not a Property Manager, that means you are the owner of the property.

If you're a Property Manager, that means you are not the owner of the property.
Finally, please indicate if your property is a rural acommodation or not. If we don't receive a reply from you, we will assume that your property is not a rural acommodation.
We greatly appreciate your cooperation. Without your help, we would not be the trusted platform of millions of travellers around the world. Thank you!

[Ivemovedon]

Don't know about other banks but Banco sabadell sent out letters to all foreign home owners  a year ago informing that they are duty bound to send details of all bank accounts held overseas with them to the UK Inland Revenue.

Looks like double trouble.

[Charlie dont surf]

The net is now coming down on foreign owners avoiding income tax and anybody renting out a holiday home without (a) a touristic licence and (b) declaring income from it. Will now be wondering whether the risk is worth it. You have to envisage a huge drop in properties appearing on holiday letting platforms in the New Year. In fact many people who have booked places might find the adverts disappear from websites. A nervous time if you've paid a big deposit. I also see property prices in the Canaries plummeting as a knock on from this.

[Ivemovedon]

I don't think so. People will just toe the line and pay what tax has to be paid..and if back tax is required will pay it off and continue as before. You can still cover the costs of a holiday home even if the required tax is paid, and that is what what most people aspire to. You can even make money if you have the right property in the right location whilst still paying out all that needs to be legally paid. So personally I don't think in the long run it will affect property prices.

Never been happy about the non residents tax, we don't charge it in Britain so why the hell do we have to pay it in other EU states. Not a massive amount I know ..but the principle of the matter was always my problem.

But then again we don't charge tolls for foreign lorries to use our roads but we are charged on mainland Europe. Seems like a common theme here.

[dagwood]

No tolls on lorries just an annual fee instead.
Of course you are entitled to be reimbursed for the use of your roads provided they`re fit for purpose which most are.

[spitfire58]

I think a lot of people will ignore this same as a lot do with non residents tax because they think it is “unfair” Although tbh it is what should be happening & then the non residents tax should be stopped (but it won`t, the Spanish government will see it as an opportunity to get both).
Also don`t think it will much difference to property prices, might keep things on an even keel for a while & make homes out there more affordable for locals.

[Charlie dont surf]

They're making it pretty difficult to ignore. It's an obligation of Holiday Letting Co's to provide this information to the Tax authorities. The owners literally wont have a choice. If they don't provide the info then they wont be able to advertise.

This is being driven by the Hotel Lobby. Didn't quite get their way to limit the amount of private lettings with touristic licences but this will be far more effective for them and they have the politicians onboard due to the tax generated which will run into â,¬M's. A big windfall for a small island.

If it makes housing more affordable then it will have the support of Locals. Another reason the Politicians are in favour.

[ashworth]

I think a lot of people will ignore this same as a lot do with non residents tax because they think it is “unfair” Although tbh it is what should be happening & then the non residents tax should be stopped (but it won`t, the Spanish government will see it as an opportunity to get both).
Also don`t think it will much difference to property prices, might keep things on an even keel for a while & make homes out there more affordable for locals.

You will have to pay The Non residents tax when you sell your property. It is retained by the Solicitor when they get the tax record for the property, ours was 3600 Euros for 15 years so unless you dont sell you cant avoide it.

[ashworth]

Remember here VAT only7/3%. No Duty On Alcohol and Tobacco, No Business Rates which are shutting down the UK High Streets. Low owners tax rates on Residential property. Refuse 30 Euro a year. In all the tax system here is much lower than Most of Europe.

[Charlie dont surf]

You have to assume most selling up are non residents who would rent out their property to offset the running costs. With the new letting regulations and tax obligations it makes this far more difficult and I think people are trying to sell before this all kicks in and prices tumble.
That said, if you actually want to live in the Canaries then the cost of living is considerably less than living in the UK.