#bcnproperty

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Tourist Rental Regulations

With the advent of social media and the Internet a whole new platform has opened up for rental landlords to contact new clients. This also opens up a new area that has to be regulated. Recently the director General of tourism in Madrid said that this area will now be regulated more closely. It is possible that the push to regulate Spanish tourist rentals more closely comes from the influential hotel owners who see private tourist rentals as a threat to their business. The authorities want to insure that the industry remains fair across the board and that those renting holiday rentals have no unfair advantage over hotels and other regular holiday accommodation businesses.

Holiday Rentals in Barcelona

Barcelona has restrictive regulations governing private tourist rentals. Firstly there is a moratorium on the issuing of any new short-term tourist rental licenses. Only homeowners who already have a property with a rental license can rent or those who purchase a property which com with a rental license. The rental license applies to the property not the landlord so when the property is sold the license reverts to the new owner. In addition the Barcelona municipality requires strict conditions to be abide by to insure that residents in the neighborhood are not negatively affected by tourist rentals and that neither tourist not landlords suffers any loss or damages as a result of low quality accommodation or bad contracts. 

However there is another way that the Barcelona town hall is trying to cut down on illegal rentals – they have requested the help of local residents who want to report illegal rentals to the authorities. The municipality also employs inspector who walk around neighborhoods chatting to locals and asking if there are any rentals nearby in order to trap unsuspecting illegal landlords. In 2017 the Barcelona municipality will increase the number of inspectors from 20 to 40. The aim is to increase this number to 80 by the end of the year and 110 by next year. The inspectors not only cruise neighborhoods but also surf the net looking for illegal rentals advertised.

Illegal rentals in Barcelona are still rampant as there is a high demand for tourist accommodation and a high number of landlords who are drawn towards this line of business because it is highly profitable.

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For Sale - Barcelona House

Check out this amazing property on the Coldwell Banker website.

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Family Home in Barcelona

This beautiful family home in Barcelona’s Sant Cugat del Valles area is perfect for stylish families who want lots of space, a perfect location and top quality building. The house was only constructed in 2010 and created with the best building materials available. The house was designed by a leading architect. This Sant Cugat home has 4 bedrooms and 3 bathrooms and is built 550m² on a plot of 1335m².

The single family home has a unique design on a hill side in the residential estate of Can Cortes which is only 10 minutes from downtown Barcelona. The house is surrounded by greenery and natural countryside and because of its elevated location there are spectacular views where ever you look.

The house has three floors; all the bedrooms have built-in wardrobes; the bathroom has a free standing bath and a wall of grey marble. The house has large windows letting in a lot of natural light. Throughout the house there are beautiful parquet floors and tiled floors plus sleek architectural features. Of the 4 bedrooms 2 of them are suites and have their own dressing area and bathroom.

The house has gas heating, double glazing on the windows, a balcony, elevator within the house and a modern kitchen.

Outside there is a garden, private swimming pool and parking for as many cars as you like. Beneath the house is a parking area which can also be used as a multipurpose room and converted into a bedroom, games room, private gym or office.

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Brexit and 2017

With the result of the Brexit referendum and the eminent exit of Britain from the European Union the dream of moving to a home in the sun in Spain has taken on a new angle. At present there are approximately 1,700,000 Brits living in Spain. British PM Theresa May is set to put Article 50 into action by March 2017. Only once Article 50 (the official mechanism which allows a country to leave the EU) has been activated will the clock start ticking down two years until the final British exit from the EU must be completed. In those two years the terms of the exit will be negotiated. This means that Britain will most likely only leave the EU in the summer of 2019 leaving plenty of time for British home owners in Spain and new property buyers time to get their affairs in order.

In addition to Brexit there are more contributing factors which effect Brits  considering buying property in Spain including the state of the Pound and the potential recession in Britain. But perhaps the most worrying factor to both potential British buyers and to those who already own property in Spain is the chance that Brexit will mean a change in British rights to live in Spain and a change in laws pertaining to assets owned by Brits in Spain. Of course this goes for all of Europe not just Spain. The question facing many is whether the same volume of Brits would retire in Spain if they were not eligible for Spanish health care, pensions and residency etc. There is uncertainty about whether post-Brexit laws will make living in Europe more complicated and less financially viable.

The bottom line is that we will have to wait and see. Brits who want to buy property in Spain and live in Spain will no doubt continue to do so regardless but those who were on the fence and only considering the prospect will probably abandon their dream of a home in the sun. This will no doubt lead to fewer British buyers in Spain but the question is to what extent.

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Cost of Owning Barcelona Property

Once you have bought your home in the sun you will need to pay the necessary maintenance expenses and taxes each year. Here is a brief outline on what it will cost you to have your property in Barcelona.

Taxes

Municipal Added Value Tax: Plus Valia – Based on the municipal index value of the land from prior vendor’s purchase to present sale.

Rates or Annual Property Tax: IBI

Wealth Tax: Impuesto de Patrimonio - Based on total net assets.

Income Tax: Impuesto sobre la Renta – If you reside in Spain for more than 184 days a year then you are a Fiscal Resident and must declare income annually just like residents. Non-residents pay two kinds of income tax (IRNR) on income received through ownership of Spanish property – income gained from property rental and derived benefit of own use of property. Different income tax may apply depending on source of income.

Capital Gains Tax: Impuesto sobre Ganancias Patrimoniales Inmobilliarias – Tax on the sale of property.

Maintenance and Ongoing Expenses

Fixed Phone-line: Cost varies according to region and equipment installed.

Cleaning Service: You may need a full time cleaner or someone paid by an hourly rate. The hourly rate is about €10-15.

Electricity: Paid monthly or bimonthly depending on the city. There is a minimum rate whether you are using electricity or not residing in the house at all. If the house stands empty the electricity bill is calculated according to the potential use with all power turned on. Electricity could cost you €40-150 a month depending on the property.

Gardeners: In an apartment this would be covered by the Homeowners Association; in a villa you would pay about €16-20 an hour.

Insurance: Home insurance for property and contents paid annually.

Community Fees: Homeowners Association fees comprised of the residents of an apartment building or villa estate. Participation in maintenance expenses for shared areas like lobby, pool etc.

Water Rates: Paid to the municipality every 3 months according to meter consumption.

Garbage Collection Tax: Basura - Paid every 6 months to the municipality.

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Foreign Property Investors from London

London Apartment Costs the Same as Barcelona Apartment Block

In Barcelona real estate news today there is the story of a British family which sold up their London apartment and with the profits bought an entire apartment building in Barcelona. The apartment building has four floors and is located on Hospital Road in the Raval neighborhood. The building was constructed more than a hundred years ago and so need repair and renovation. However it is still a four storey property in the heart of Barcelona for the price of one London apartment – whichever way you look at it! The family intends to do the necessary renovations and then rent out the apartments on all four of the floors. Thanks to the rising price of Barcelona property the family will be able to make a tidy turn over if they simply wait a few years and then sell. This is what is called in the investment world – a sure thing!

A property of this kind, in this neighborhood is valued at approximately a million Euro and apartments in this area of the city are rented out for about €1,000 a month. The family should be able to sell their investment in a few years for at least €1.5 million after renovation. This British family is not the only one with this idea. Many foreign property owners are getting the same idea – why own one property when you can own an entire building in Barcelona for the same price. The trick is to buy doer-uppers, invest in some good renovations and in so doing raise the value before selling. Foreign investors are waking up tot eh fact that Barcelona properties offer good returns, whether it is as a buy-to-rent or as a buy-to-resale. Some attribute the British interest in Barcelona property as a result of Brexit, other experts attribute it to the Euro-Pound exchange rate and others simply the fact that investors identify Barcelona as a city where they can get good returns on their investment. Brits make up about 17% o the foreign market in Spanish house sales and this figure does not look like changing in the near future.

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Barcelona Property – A Great Investment

Investing in Barcelona has always been a good idea but now is actually the perfect time to buy a Barcelona property whether it is for buy-to-rent; as an investment or as a second home. A Barcelona property could provide buyers, especially foreign buyers with an income when they retire or even a retirement home for themselves. The city is currently attracting a lot of interest from property investors; the Barcelona property market is on the cusp between being reasonably priced and being extremely valuable. Property prices are climbing but have not reached great heights. If those “in the know” are putting their money into Barcelona property then shouldn’t you?

Property Trends

There is a trend for investors to buy cheap, renovate and sell. Others o the same but they hang on to the properties to use as rental units either for long term or short term (if the property has a tourist rental license). If you are not a major investor but are looking for just one property then you need to move fast as those with a lot of money and experience are gobbling up available low cost homes in the downtown area to renovation, resale or rent. The savvy investors are already buying up both small and large properties for this purpose and the trend looks like it will continue as Barcelona has more built properties than vacant land.

Supply and Demand

There is a high demand for rental properties in Barcelona. It is and will continue to be a hot vacation spot and a popular retirement city. The tax benefits for buyers are favorable and foreigners can benefit from the Spanish Golden Visa.

Easy Purchase

The purchase process in Spain s not complicated. Of course you must seek guidance from a reliable real estate agent like Coldwell Banker and from a trusted lawyer before making any property purchase in Barcelona.

Market is on the Rise

Although the property market in Spain has not reached the heights of pre-2008 it is still showing that it is moving in the right direction and has no indication that it will stop. If you buy Barcelona property now it is almost guaranteed to go up in value in the next few years.