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Spain – Buy-to-Let Future Uncertain as Obligatory Licenses are Brought to Light

August 11, 2008Article by Ray Withers

The future profitability of Spain’s buy-to-let investment market came under scrutiny recently when strict rental restrictions were brought to light last week.

Despite the Federation of Overseas Property Developers, Agents and Consultants’ insistence that there are ‘still a number of excellent opportunities to buy property at reasonable prices with the prospect of long-term price rises’ it seems that the promise of the Spanish real estate market may be thwarted by restrictions implemented by the tourism authorities.

Whilst many of those investing in Spanish real estate hope to offset the full cost of their mortgage by renting out their property in peak holiday seasons, it has materialised that owners could face fines of up to £20,000 if they rent without a full license from the tourism authorities. When owners have tried to obtain these licenses, they have been granted extremely rarely.

Those lured by the fact that Spain is currently the most popular destination for British Tourists (the Office for National Statistics) therefore may well find that they are unable to take advantage of this opportunity due to the country’s tourism laws.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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