4 bed villa wanted for very long term let

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Troykeeble
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4 bed villa wanted for very long term let

Postby Troykeeble » Wed Feb 22, 2012 5:13 pm

Im moving my family to the costa del sol in about 4 months and want a 4 bed villa for very long term let . I know there is a lot of people selling at a loss and all i can say is how about renting it out long term and see if the market picks up so you dont have to sell at a loss.

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Troy
Last edited by Troykeeble on Thu Feb 23, 2012 6:54 pm, edited 1 time in total.

scottishtog
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Re: 4 bed villa wanted for very long term let

Postby scottishtog » Thu Feb 23, 2012 10:46 am

Hi There,

Probably not of any interest to you but we are selling our 2/3 bedroomed house in Andalucia. We had discussed the possibility of renting but not sure I'd want to tie it up for as long as 5 years. I reckon most people would rather sell and having a tennant for 5 years might make that restrictive.

Hope you find someplace though and I'd be interested to hear how you get on.
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ian.wilson
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Re: 4 bed villa wanted for very long term let

Postby ian.wilson » Fri Feb 24, 2012 4:09 pm

The majoruty of rental contracts (long term) in Spain are for 11 months only, very few people will give youy longer. THe is good chance at the end of it they will renew for another 11 months, that is just the way it seems to be here. Good luck :o)
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ValL
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Re: 4 bed villa wanted for very long term let

Postby ValL » Fri Feb 24, 2012 4:22 pm

ian.wilson wrote:The majoruty of rental contracts (long term) in Spain are for 11 months only, very few people will give youy longer. THe is good chance at the end of it they will renew for another 11 months, that is just the way it seems to be here. Good luck :o)

I can say without exception all the properties I have looked at for renting they all said 12 months ! no one interested in less, which is fine as I am looking for a year or more.

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Re: 4 bed villa wanted for very long term let

Postby scottishtog » Sat Feb 25, 2012 10:07 am

Thts weird because we spoke about this with our solicitor last week and he said never rent for more than 6 months because that legally puts you in a long term situation which gives the tennant many more rights - such as extending the rent to 5 years at the same price
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Re: 4 bed villa wanted for very long term let

Postby ValL » Sat Feb 25, 2012 10:38 am

It may be weird to you but the ones I saw, about a dozen in one area probably about the same amount in the other area, were all saying 12 months. The one I am hoping to get wants someone in there long term as in he wants me to have it for 5 yrs at least. I will not sign for that long but am happy with 12 months then see if I really like the area enough to sign up for more. They also seemed on average NOT to want spanish tenants, I saw the damage done by a few ex spanish tenants and in one the expat ( no idea which country) had stolen some furniture apparently.

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Re: 4 bed villa wanted for very long term let

Postby scottishtog » Sat Feb 25, 2012 10:45 am

My comment about it being weird was actually related to the comment about 11 months - the suggestion being that you need to keep the rental below 12 months but our solicitor had said that 6 months is the cut offperiod for a short term let.

May be of interest to you too but he pointed out that most landlords want to do the deal in cash and not pay VAT but our solicitor said that the tennant is also included in the agreement and it's not just the landlord that the authorities will come after so watch out if your landlord does not include VAT in your invoice. Spain is strapped for cash and they are doing anything to collect money either in tax or fines
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ValL
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Re: 4 bed villa wanted for very long term let

Postby ValL » Sat Feb 25, 2012 10:55 am

Yes I realise you meant the 11 months, I have been looking for a rental and in the beginning I was looking for short term which I was led to believe was no more than 6 months. In this area and the other area I am looking none wanted 6 months. They all said a year, it is less hassle than continually looking for new tenants I suppose but also may result in more damage done by various. non payment must also be a worry for owners. I will ask the man who is negotiating for me about the vat thank you.

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Campo Steve
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Re: 4 bed villa wanted for very long term let

Postby Campo Steve » Sat Feb 25, 2012 12:04 pm

May be of interest to you too but he pointed out that most landlords want to do the deal in cash and not pay VAT but our solicitor said that the tennant is also included in the agreement and it's not just the landlord that the authorities will come after so watch out if your landlord does not include VAT in your invoice. Spain is strapped for cash and they are doing anything to collect money either in tax or fines
We have vaguely thought about renting out our other house as we aren't using it as much as we thought we would. Starting to think I can't be bothered with the hassle and risks involved.

Am I right in thinking that, if we did rent it out, we would have to charge VAT and hand that over to the Government AND pay income tax on the rent? Bit of a double whammy, if so!
I've got an inferiority complex, but it's not a very good one!

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Re: 4 bed villa wanted for very long term let

Postby Chunky Monky » Sun Feb 26, 2012 1:51 am

Hi Steve, Don't know about vat but over the last year or two I have seen numerous posts about 25% of rental income being claimed by the Hacienda.

Is that still the case?


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Mike.M
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Re: 4 bed villa wanted for very long term let

Postby Mike.M » Tue Feb 28, 2012 12:40 pm

Hi Steve,

I'm NO expert but I would research further based upon the following assumptions, as a starting point:

Holiday Lets
Will have to be declared to both UK and Spain and subject to Income Tax (if also UK Tax Resident) - you can offset the tax paid in Spain against your UK Self Assessment under the Double Taxation Treaty. I am uncertain as to whether short term holiday lets attract IVA.

Long Term Lets
I would assume that income needs to be declared, as above, in both the UK (if also UK Tax Resident) and Spain for Income Tax purposes. I do believe you will be subject to IVA and under the EU 'place of supply' rules, you would be liable for this in Spain only, even if you accepted sterling from a UK based person (this would also be liable to IVA). This MIGHT also necessitate you submitting a quarterly return and you MAY have to appoint a Spain based representative (if you're not in Spain), as the authorities here seem to like to have someone on the home soil that they can badger.

This would be my starting position, that I'd research against.

Mike

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Campo Steve
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Re: 4 bed villa wanted for very long term let

Postby Campo Steve » Tue Feb 28, 2012 3:26 pm

Thanks Mike. The UK side of it doesn't come into it as although I get a pesnion paid in the UK, my tax code is NT as I pay tax in Spain. I would declare the income here but it was the IVA bit I wasn't aware of.
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