Property Lawyer in Spain | Long Term Letting

Long Term Letting

If you are going to rent out and provide other professional services such as cleaning or laundry, you must charge I.V.A. (currently 21 % ) and also comply with possible local rules and tourist taxes in order to do it.

If the property is used as a place of business, or you are going to rent your house to a tourist agency, you must also charge I.V.A. (21% currently). The tenant will then retain from the rent he or she is being charged, the amount that must be paid as your income tax contribution and pay it directly to the tax authority (24.75% currently).

In all these cases, the tenant doesn’t have any other rights apart from those which he or she has agreed with you.

If you are going to let the land for agricultural purposes to a professional farmer, or let a house to be the residence a tenant, you don’t have to charge I.V.A.

You must be aware that in these two cases, the tenant has some rights independent of those that you have agreed with him or her. The most important of these is the length of the tenancy:

.- Five years in rural, agricultural letting, with a succession of extensions of five years if the owner doesn’t notify the tenant to leave at the end of any one period.

.- Five years ( seven if the Landlord is a corporation) for a house if it is going to be the main ordinary residence of the tenant, with extensions of a year until three more years added if the landlord does not give notice to vacate to the tenant with four months notice or the tenant does not give notice of leaving two months before the end of the period. In the case of the house, you can recover it after the first year but only if it is going to be used as your own residence or for one of your direct relatives.

This regulation has been in force since 6-3 2019. For contracts currently in force at that date, the regulation is as was previously in force ( three years minimum period plus one year extension.

So, if the house is not going to be the main residence of the tenant and you have agreed to let it on that basis, it is advisable to write clearly in the tenancy agreement that it is being let for some other reason than as a main residence.


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