Last Updated on November 20, 2024 by Asen Yanev
It’s thrilling to find an overseas investment opportunity. However, dealing with the day-to-day responsibilities of managing your Spanish property can be complex. When there is a language barrier and you are thousands of kilometers away, tasks like sorting bills and maintenance of your Spanish property might be challenging. Add to that complicated rental laws and rental income tax in Spain, and it’s easy to see why so many investors enlist the services of a dependable property management company in Spain. In this blog, we’ve broken down everything a landlord needs to know about property management in Spain, and who can help you deal with your Spanish tax return / Form 210 obligation. In this guide:
- What you need to know about renting a property in Spain
- Do I need a property management company in Spain?
- When should I hire a property management company in Spain?
- How to find the right property management company in Spain?
- How much are property management fees in Spain?
- Are property management fees tax deductible in Spain?
- How to manage a property in Spain from abroad on your own
- What happens if you don’t pay your non-resident Spanish property tax?
- Who can help me deal with my Spanish property taxes?
- Why is PTI Returns better than a local accountant?
What you need to know about renting a property in Spain
In the last few years, as a result of the property boom in Andalucía and Costa del Sol, many property owners prefer to rent out their property rather than leave it vacant. If you have a rental property in Spain, you should be aware that there are a number of important rules you must follow. Renting out a property in Spain without a tourism license is now forbidden. It makes no difference if you intend to rent for a few weeks or for a few months each year. You must display your tourism license on any rental offers (online) because it is legally required. That being said, if you decide to use the services of a property management company in Spain, it should be fully compliant. Usually, property management companies in Spain offer to obtain a tourism license for you. They could also advise you if your Spanish property meets the standard, or if it needs any modifications. The property management company could even offer to arrange any work that is mandatory. All Spanish rental properties with this license must have:
- air conditioning in the living area and every bedroom
- a specified amount of clean linen
- a contact number for emergencies – 24 hours
- natural ventilation or forced ventilators in bathrooms
- operating manuals for every equipment
- first aid equipment
You must also confirm guests’ identity documents and register them with the national police hotel service before giving them keys.
Do I need a property management company in Spain?
Property management companies can save you a lot of time. Many homeowners want to rent their Spanish properties, while others prefer not to lease their private homes but worry about their real estate being empty while they are not in the country. If you decide to rent it, you likely won’t be in Spain at the time. That’s why it makes sense to engage a property management company. Even people who live in Spain and own two or more properties prefer to delegate some or all of the maintenance to specialists. Finding a tenant for your property can also be easier with the right property management service. They will be in charge of keeping your real estate occupied by advertising it and screening potential renters. The property management company will also be in charge of keeping track of any maintenance, and utility bills. They will take care of the administration and marketing of the property and can provide different types of services to give you peace of mind while you are away. The property management company will also make efforts to keep your reviews and internet reputation clean which is very important. If you decide to use the services of a property management company, you won’t have to spend your time in Spain worrying about problems like electrical outages, water damage, and bug infestations, because the property management company will regularly monitor your home and address any of these troubles. This means that when you return to your Spanish property, you can relax, and enjoy the sunshine.
Read also:
Spanish property tax for non-residents What’s the Spanish NIE number? And what is it needed for? The Ultimate Guide Everything you need to know about mortgages in Spain for non-residents
When should I hire a property management company in Spain?
- You have too many properties to manage on your own
- You do not live close to the Spanish property you own
- You are busy and you don’t have time
- If you are tired of spending your holiday cleaning and gardening
- You prefer making less money but someone else is taking care of the property maintenance and paperwork
How to find the right property management company in Spain?
To find the right property management company in Spain, it’s always a good idea to get in touch with homeowners from the local neighborhood and ask them for suggestions. If you are checking in search engines, look for property management companies in Spain with top ratings and recommendations. Then, make sure you have a list that shows what’s included in the property management fee. These are the main services that should be included in your contract:
- organizing maintenance, cleaning, laundry, and repairs of the real estate
- promoting the rental property and showing it to potential tenants, organizing bookings
- ensuring the property bills and property costs are paid on time, including local tax
- collecting the monthly rent and deposits
- property check-in/check-out procedures with an inventory
- garden/ pool maintenance
- maintaining the online reputation and reviews
Remember that not all property management companies in Spain organize rentals, and not all rental agents become involved in property management. However, some of them may offer to handle both. Most property management companies do not offer property tax services as well. But you will need to deal with your tax filing obligation in Spain even if your property is not rented out. However, you can delegate the property tax paperwork to a certified tax agent like Property Tax International. Our tax advisors can help you file Spanish rental income tax returns, claim your eligible property expenses, and save on property taxes.
How much are property management fees in Spain?
The property management company’s services are less expensive in Spain than anywhere else in Europe. They often charge 10% to 15% of the rental price for long and short-term rentals, and this commission includes house upkeep. The typical average fee is around 10%. If you want to keep your house unoccupied while you are abroad, there may be a fixed maintenance fee of 300 to 2,000 euros per year, depending on the size of the property. If the real estate is going to be vacant for a long time, hiring a cleaning company for its maintenance is always a good idea. We would also recommend home insurance that covers any theft or accident.