As many with investment properties on Spain’s Costa del Sol will know, there’s often a steady influx of new laws and regulations that owners need to be aware of. We outlined the Spanish government’s newest legislation for holiday lets in our previous blog Spain’s New Tourist License For Short Term Rentals – What Is It?
WHY NOW AND WHAT ARE THE RISKS?
As of the 1st of July the unique rental registration number, or the NRA as it’s known in Spanish, is being enforced. This new license is distinct from the Tourism License. That you need to make sure you also have. Not obtaining an NRA number before you start renting your property on the short term holiday market is now illegal and carries a fine of up to €500,000.
Here are at Bravo Homes World we acted fast and in cooperation with our owners and our extensive third party network, to ensure that our rental properties were compliant and ready for these changes before the deadline. Ensuring that our owners did not miss out on these crucial summer months.
Spain’s holiday market may be up overall by 7% year on year. There has been growing push back from ordinary citizens who are being priced out of neighbourhoods and cities they may have grown up in. Leading to an affordability crisis. These new regulations then are seen as a short term political solution to address some of those warranted concerns.
But what can investors do, especially if they live abroad and do not have easy access to the avenues needed to apply for an obtain an NRA license? If you rent your property short term, be it yourself or through an online property platform or property management agency, you cannot put it onto market without an NRA. Doing so would risk your investment being de-plaftormed from all the major sites and a hefty fine. And all the time your spending applying for and waiting for the NRA to be issued, is time when you’re not earning.
WHAT CAN YOU DO WITHOUT AN NRA?
The good news is that long term rentals, 12 months and over, are excluded from the new regulations. The new laws after all are an attempt to stabilise the market for normal working families in Spain. If you have yet to acquire an NRA, are unable to get one or won’t be able to secure one for some time, we strongly recommend considering the long term market. The penalties for not adhering to the new regulations are serious and fines have already begun to be issued.
If long term lets are not viable for you, we have seen an interest in mid term rentals, meaning anything over 2 months and less than a year. So explore your options! Bravo Homes World are here to help.
If you are unsure which is the best strategy for you during these trying times CONTACT US. And we’ll do our best to help guide you.
Header Photo by Sam Williams on Unsplash
