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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.