help! moving to spain in feb 2017
 

Hello new member here. Coming to spain in feb 2017 to buy a property in s.e. spain. Wil be using my share of divorce to fund the move.

I am hoping to rent it as short term holidays lets and live in a one bed for periods that it is rented out. Then live there when it is not rented out.

Any one see any problems with this? I am 50 now.

Danny

Re: help! moving to spain in feb 2017
 

You're planning to rent out as a holiday let while continuing to live in one bedroom, actually be there while it is rented? :unsure:

Re: help! moving to spain in feb 2017
 

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Re: help! moving to spain in feb 2017
 

Yes, I will be renting out the whole property out whilst I stay else were (one bed with shared kitchen/lounge etc). I dont need a mortgage.

Danny

Re: help! moving to spain in feb 2017
 

I am still confused - it sounds like you won't be renting out the whole property? :confused:

Re: help! moving to spain in feb 2017
 

Maybe I am not making it clear. Looking to buy 3 bed property walking distance to coast in S.E. spain with communal pool. Summer rentals upto 1800 euros and winter 1200 euros. Yes the WHOLE property will be put on short term let. This will give me more than enough to live on. When the property is rented out I will be living else were in a one bed propery with shared access to kitchen and lounge. When the property is not rented out I will be staying there. Hope this helps.

Danny

Re: help! moving to spain in feb 2017
 

If we have it right there are two properties involved, one owned and one small one bed which you live in while main house/apartment rented out.
Costa del Sol demand shifting to long term rentals as uncertainity about Brexit and weak sterling mean people being more cautious / waiting to see what happens. Short term rentals also complicated by local legislation on holiday lets, long list of requirements not least of which is pressure from Spanish taxman.
I imagine other regions same thing happening.

Re: help! moving to spain in feb 2017
 

Can you guarantee that you'll get enough bookings to pay all your expenses?

Re: help! moving to spain in feb 2017
 

This is what's confusing me - it sounds like you're still going to be accessing the kitchen and lounge of the "whole property" that you have rented out? ..... That doesn't sound like you have rented the whole property, because if I rent a "whole property" for a holiday, I don't expect to find the landlord stewing cabbage in the kitchen or slouched on the sofa watching Sky Sports.

Re: help! moving to spain in feb 2017
 

I think she/he is renting elsewhere while renting out THE property but only has access to shared facilities apart from a bedroom? I could be wrong-frequently am.

Re: help! moving to spain in feb 2017
 

Yes. Yes have seen bookings taken for exactly similar property on same development. Look on homeaway.com or airbnb.com

Any way my question is does anyone see a problem with this? Dont want to apply for residency just yet. Will I have to declare rental?

Re: help! moving to spain in feb 2017
 

Let me try to make this clear - the property I am buying (only buying ONE) will be rented as a WHOLE short term holiday let property.

The OTHER I will NOT own - I will only BEING pay rent for a one bed with shared access to kitchen and lounge.

Confusing my self now lol!

Re: help! moving to spain in feb 2017
 

I thought I understood, until you posted this clarification. :lol:

To which kitchen and lounge? .... The ones in the "whole property"?

Re: help! moving to spain in feb 2017
 

This is one of the all time great threads ,,,, clarification being impossible because no one understands where the shared kitchen and lounge is .:thumbsup:

Re: help! moving to spain in feb 2017
 

Yes you need to declare the rental. As a Non-resident return has to made very three months on rentals.

Re: help! moving to spain in feb 2017
 

Doh! The OP is renting another property in which she/he has shared access to lounge, kitchen, bathroom whilst the purchased property is being let out.

Re: help! moving to spain in feb 2017
 

Am sure you are right but enjoyed so much reading the thread.

Summary :

1. Buys house - rents it out

2. When rented out moves to a smaller one bed with shared facilities

3. When not rented out lives in main house.

Answer yes quite feasible, around our area on the Costa know a few people who do it and either move to a caravan site during the summer season or rent a smaller place . We had actually this situation, a very pleasant couple arrived at the apartment below us, as we eventually learnt from chatting to them they had a very large house near Marbella which they rented out all summer.

Taxes as mentioned previously .

Re: help! moving to spain in feb 2017
 

Top of the class Pica !!!

Are the taxes I will have to pay on the rental reasonable? Plus how would they know how much I received on rental - on good faith? I can have rental paid into a PayPal Account.

Thanks - am Looking in Los Alcazares.

Re: help! moving to spain in feb 2017
 

So why didn't he just say "renting another property to live in". Full stop. I don't see that it is relevant whether the other rental has its own facilities, shared facilities, or is a tent in the woods. :confused:

Re: help! moving to spain in feb 2017
 

On rental tax comes out about 20℅ depending on deducted expenses.
Taxman spends his free time on Home away, Airbnd , in-between checking data with utility companies.

Re: help! moving to spain in feb 2017
 

He/she did, just had to read it carefully ;)

Re: help! moving to spain in feb 2017
 

Does any one have any experience with the rental tax form - it seems so complicated.

Re: help! moving to spain in feb 2017
 

Get a gestor to do it, probably only charge about Euro 50,-

Re: help! moving to spain in feb 2017
 

Thank you!

Re: help! moving to spain in feb 2017
 

Another question - I am allowing for about 12,000 euros for fees on top of property price (looking to buy between 120,000 to 110,000). Is this enough?

Re: help! moving to spain in feb 2017
 

Should do it, allow 8% transmission tax, ( this varies from region to region ) then lawyers, register and other things . A word of warning - some councils have not revised their Cadastral ( rateable ) value since 2008 - the height of the property boom before the collapse. This means they may charge the 8% tax on the cadastral value , which is often higher than the actual purchase price, and then demand more money. You will only find out about this several months after the event. So, for example, you spend Euro 120,000,- on a house that has a "value" of Euro 180,000,- . Your final transmission tax bill will be 8% of Euro 180,000,- not the Euro 120,000,- you paid.

Re: help! moving to spain in feb 2017
 

Purchase tax in Valencia/Alicante is 10%. I would allow 15% of the property price.

Re: help! moving to spain in feb 2017
 

It's not that complicated, once you get used to it. You could pay someone to do it for you the first time and then use that as a guide for subsequent times.

If you are going to be non-resident in Spain, you will need to worry about two types of taxes:

1. Tax on the rental income for when the property is rented -- paid quarterly
2. "Imputed" tax for when the property is not rented -- paid yearly.

So if you only rent it out part of the year, you could possibly have to fill out Form 210 five times per year.

Here's a guide to doing the imputed tax:

Non-resident imputed income tax - Form 210 - Andalucia.com

For rental income, it's pretty straightforward, you pay 24% of the income. I have my own notes on the differences, copied here:

For rental income:
type 01
file quarterly - first 20 days after the end of the quarter (1 - 15 for Internet payments)
use Grouping
accrual date blank

For imputed income:
type 02
file annually - before Dec. 31 of the next year
use "valor catastral" (from IBI) -- 1.1 or 2% in box 04
prorate the amount for period of the year when not rented
payer is blank (renter name)
period OA
no Grouping
accrual date 3112nnnn (Dec. 31)

Good luck.
- Eric S.

Re: help! moving to spain in feb 2017
 

So if he/she is just bumming around in that 1 bed flat but has income of beetwen €10k & €15k a year is there no earnings limit to apply like in the U.K.? The 23% surely kicks in at a certain amount of income no?

Re: help! moving to spain in feb 2017
 

I still don't understand why she's not renting out the kitchen.....

Re: help! moving to spain in feb 2017
 

The OP means they are buying a 3 bed property to rent out during the peak season (the whole property), and while that is rented out they will themselves be renting a second property, where they'll occupy a bedroom and have shared access to facilities (a flat share/house share)

Re: help! moving to spain in feb 2017
 

We so needed that clarification. It was beginning to feel as though the blind were leading the blind on this thread.

Re: help! moving to spain in feb 2017
 

Perhaps the bedroom could be shared too.

Re: help! moving to spain in feb 2017
 

Good morning Danny,

My wife and I are planning to move over in early 2018 we will also be 50 next year and feel it's now time for us to start to live.

So basically best of luck with your move and I look forward to reading more of your posts in the future.

Can I ask why your planning to earn your rental income in Spain rather than in the UK?

Tim

Re: help! moving to spain in feb 2017
 

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Re: help! moving to spain in feb 2017
 

Thanks for the advice.

Re: help! moving to spain in feb 2017
 

Hi, I have just started looking at relocating to Spain and am working my way through the posts. This post made me laugh so much I was crying, I can't waited come and meet everyone!

Re: help! moving to spain in feb 2017
 

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary