What is the exact position about apartments in 2018

[Papillon]

A couple of points, remember if you have joint ownership of the property you are allowed £11700 each before you are liable for gains after you deduct Spanish gains tax paid.
Any gain then is added to individual annual income and if each below £46350 will be taxed at a rate of 18% and 28% above for residential property.

Apparently my friendly tax consultant tells me the revenue are only interested in the purchase price and the selling price at the daily exchange rate on day of purchase and sale. This will determine gain or loss less Spanish capital gain paid.

It will be interesting to see how Brexit affects this in the future.

No financial advice intended, just my personal understanding.

[alcanadakid]

Originally Posted by Papillon

A couple of points, remember if you have joint ownership of the property you are allowed £11700 each before you are liable for gains after you deduct Spanish gains tax paid.
Any gain then is added to individual annual income and if each below £46350 will be taxed at a rate of 18% and 28% above for residential property.

Apparently my friendly tax consultant tells me the revenue are only interested in the purchase price and the selling price at the daily exchange rate on day of purchase and sale. This will determine gain or loss less Spanish capital gain paid.

It will be interesting to see how Brexit affects this in the future.

No financial advice intended, just my personal understanding.

Thanks Papilon, that is my understanding too

[JPALCOVER]

Originally Posted by Hanser

.... it could cause the price of these properties to be driven down and become more affordable for residential use.......

That is exactly what the "locals" are calling for........... not only in in PP; also in Barcelona, Madrid, etc.

Now, of course, you could reply, as in the late XIXth century, a few thousand miles further East: "The natives are restless? Get the guns out!"

[Hanser]

Originally Posted by JPALCOVER

That is exactly what the "locals" are calling for........... not only in in PP; also in Barcelona, Madrid, etc.

Now, of course, you could reply, as in the late XIXth century, a few thousand miles further East: "The natives are restless? Get the guns out!"

Do you write for the Majorca Daily Bulletin by any chance?

[JPALCOVER]

Originally Posted by Hanser

Do you write for the Majorca Daily Bulletin by any chance?

Actually, I write for the Punjabi Gazette.

[P&C@29]

Just looking on Facebook lots of availability, maybe it could be the prices that some are charging or people are going elsewhere due to the holiday tax.

[debz1]

Talking to our property agent the other day and he said bookings are down at least 20%, and that the idea of bringing in the licencing law so that locals could rent wasn't working either as properties are too expensive. Pretty poor goverment decision

[mike_dublin]

https://www.majorcadailybulletin.com...than-muro.html

Pollensa has leapt above Muro for the first time in terms of the number of registered tourist accommodation places. In so doing, Pollensa now has the second highest number of places in the northern part of Majorca.

The reason for this is the inclusion of registered apartment holiday rentals places. The figures had previously been confined to hotel and villa places. Pollensa has long had more legal rentals places than those in hotels, but it has ranked lower because there are far fewer hotels than in other resorts.

The Pollensa total is now 20,468. Of these, 7,575 are hotel places; the other 12,893 are holiday rentals. ...

Pollensa was right at the forefront of holiday rental accommodation. This is a tradition going back several decades. By and large, there was not the hotel development which occurred elsewhere. Puerto Pollensa was already an established resort with small hotels at the time when the Alcudia Bay resorts were created from the comparatively little which had existed previously.

...

see full article on the MDB website

[mike_dublin]

https://www.majorcadailybulletin.com...wn-almost.html

At a recent conference in Ibiza, the president of the Fevitur national federation of holiday rentals associations stated that the number of rental properties in the Balearics fell by 27% between 2016 and 2018.

Tolo Gomila observed that legislative changes and lower profitability because of a fall in the number of tourists had led to a decrease in the number of holiday rentals.

The worst time for amending tourism legislation, he noted, was “ when we had 4.5 million additional tourists that weren’t ours”. That was a time when almost the “only safe tourism destination in the Mediterranean was ours.”

The conference coordinator, University of the Balearic Islands professor of commercial law Juan French, pleaded for there to be an end to the “demonising of a sector that is good for society”.

Gomila stressed that only 6.8% of properties in the Balearics were for holiday rental purpose, while some 16% - approximately 85,000 - were empty.

...

One of the biggest problems is that bureaucracy is hindering the registration process.
Some owners have reportedly been waiting for their paperwork since 2015.

see full article on the MDB website

[mike_dublin]

https://www.majorcadailybulletin.com...tal-slump.html

The new regulations for the tourist rental market in the Balearic Islands have cost the sector about 500,000 customers in the last two years, according to the latest data from the Institute Balear d’Estadística, or Ibestat.

In 2017 almost 2.5 million visitors stayed in tourist accommodation but bookings plummeted by 25% last year to just over 2 million.

...

4,268 of the 14,297 rooms rented to tourists since August of last year were in single-family homes and 9,195 were in flats.

There are now around 2,300 apartments with tourist rental authorisation in Majorca, but none of them are in Palma, because the City Council has banned tourist rentals throughout the city.

The clamp down on illegal holiday rentals hasn’t stopped tourists coming to the Balearic Islands, they’re just opting to book hotel rooms instead of apartments.

see fill article on the MDB website

[bobley]

At least it keeps the hotel owners happy.

My mates are all happy too as they get to stay in my house for free

[mike_dublin]

Originally Posted by bobley

At least it keeps the hotel owners happy.

My mates are all happy too as they get to stay in my house for free

The bar, restaurant and shop owners are probably less happy about it.

[Sparky]

The hoteliers were very happy so they increased their prices but it backfired and bookings fell, so much so that they had to offer discounts, in some cases up to 50% .

Bar and restaurant owners have definitely suffered and so have the staff who work in the industry.

[Miller]

Originally Posted by mike_dublin

https://www.majorcadailybulletin.com...tal-slump.html



see fill article on the MDB website

I do not want to be pernickity but 2,000,000 is a 20% reduction from 2,500,000 not 25% or 1/5th as we used to say.
We must watch out for false news!!!

[Gommar Goffer]

Originally Posted by Miller

I do not want to be pernickity but 2,000,000 is a 20% reduction from 2,500,000 not 25% or 1/5th as we used to say.
We must watch out for false news!!!

They are clearly not great at maths. They ahve obviously based their 25% reduction on the figures of 500,000 and 2,000,000!