In more and more cities, regions and even countries it is forbidden to rent out houses for the short term, just like in Belgium and the Netherlands. In Spain, for example, a rental license is now mandatory in most tourist regions. In Austria, houses with a residential destination (Hauptwohnsitz) may not be rented out for tourists. And the Supreme Court in Portugal last week delivered a ruling with far-reaching consequences.
Since April 21, 2022, due to the unanimous decision of almost 30 judges in the Supreme Court*, no real estate owner can rent out a property 'intended for residence' within the AL regime (alojamentos local) in Portugal, even if he has a permit to do so and is full of bookings for the future.
A justice counsel who gave an explanation of vote cited by Público, Rijo Ferreira, argued that the decision may not have been properly "weighted" with the "consequences of settled case law", which could lead to "an avalanche of proceedings" and a 'significant disturbance by a sector of economic activity not to be neglected'.
If people can't legally rent out apartments they bought in good faith for this kind of "investment," they may well choose to rent them out illegally — meaning the state could lose hundreds of thousands, if not millions of dollars in tax revenue.
Real estate investors have been active in the housing market for years, much to the chagrin of policymakers, but also starters and starters in the housing market. We must make a clear distinction here between holiday homes and residential homes for (semi) permanent residence. Rob Smulders on behalf of Mondi: “As a representative, I frequently advise and personally guide members with the purchase of real estate abroad and very regularly the dialogue arises that the house can be purchased, but may not be used according to the intended purchase motive. If the motive is to use the house mainly as a second home, while it has to be rented out for tourist purposes, then complications are bound to occur after purchase. The purchase of a second home in a residential area is also less and less accepted. The pressure among local residents on (municipal) policymakers is increasing. Prospective buyers must be made aware of the risks and possible consequences in order to ultimately make an informed purchase decision. For example, we offer our members a legal quick scan .
If a house is purchased in a residential area, then in more and more countries it may not be used for touristic letting or as a second home, barring exceptions.
How to rent it out!
Hans van Let, director of CasaLasDunas : "In Spain it is mandatory to have a rental license. This license only applies to short-term rental. No license is required for long-term rental. The legislation in Spain changes daily. Our team follows these developments closely.
We have our own rental organization and it is in our interest to rent out the purchased property. That is why we will only recommend those homes that have or can apply for a rental license. CasaLasDunas is aware of the areas or cities where rental licenses are or are not issued.
Also important is that, as mentioned before, the laws can change. Sometimes blockages are imposed when issuing a rental license and sometimes doors are opened again. This all changes per municipality. If no rental license is issued for the short term, it is possible to rent out the property on a long-term basis. These long-term rental contracts must be subject to a thorough legal assessment.
More and more younger investors are buying a second home in this way. A good investment for later and interim enjoyment of own use and a piece of direct return from the rental income and later also on the sale of the house.
Do not be fooled by statements such as 'this house is not a problem to rent out'."
Municipal enforcement on tourist rental has been expanded
Since the emergence of websites such as Airbnb and Booking.com, more and more homes for tourist use have been rented out privately. There was still little supervision and regulation of tourist rental accommodation. The Tourist Rental of Housing Act gives municipalities more options to steer towards tourist rental.
source: mondi.nl
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