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Schumacher family denies rumours of move to Mallorca

Ex-Formula One champion Michael Schumacher is not being moved from his home in Switzerland to the Spanish island of Mallorca, a spokeswoman said Thursday, denying a report by a Swiss magazine.

Schumacher family denies rumours of move to Mallorca
A shot of Schumacher taken in 2012 more than a year before his accident. Photo: AFP

Swiss news magazine L'Illustre reported this week that the seven-time world champion, who sustained serious head injuries in a 2013 skiing accident, was being moved to a vast property in the village of Andratx on Mallorca, recently purchased by his wife Corinna.

A number of media around the world have picked up the story in recent days, prompting the family to exit its habitual silence on all private manners.   

“The Schumacher family does not plan to move to Mallorca,” family spokeswoman Sabine Kehm told AFP in an email.   

L'Illustre based its story on a comment from Andratx mayor Katia Rouarch, saying she could “officially confirm” the 49-year-old German sportsman would be settling in the village.

“Everything is being put in place to accommodate him,” she was quoted by the magazine as saying.

'Misunderstanding'

But the municipality on Thursday issued a statement maintaining that Rouarch had been misquoted, “probably (as a) result of misinterpretation or misunderstanding, perhaps due to language translation.”

In its statement, the Andratx city council said the mayor had confirmed to L'Illustre that the Schumacher family had recently bought a house there.   

“She did however not give any information about a potential relocation of Michael Schumacher and/or his family in our municipality of Andratx,” it said, stressing that the mayor “doesn't have any information about it.”

“The only thing that Rouarch declared to the journalists was that 'in case the family decides to move here, we will be prepared for their arrival',” the city council said.

“With this communication we want to reiterate these words were meant just in case the family come here. Obviously, in that case, Michael Schumacher and his family would be welcomed in our municipality.”

It appears that the vast property that Corinna Schumacher reportedly bought from Real Madrid president Florentino Perez in Andratx for some €30 million ($34 million) is meant to be used as a vacation home for her and the couple's two adult children.

Schumacher fell and hit his head against a rock while skiing in the French Alps with his family in December 2013.   

He spent time in hospital in Grenoble and Lausanne before being brought to his home on the shores of Lake Geneva in Switzerland in September 2014 to continue his rehabilitation.

Schumacher's family has avoided providing any details about his health, insisting it is not a public issue, and his current condition remains a mystery.

For members

PROPERTY

Is it better for landlords in Spain to rent to temporary or long-term tenants?

If you own property in Spain that you don’t live in yourself, it’s likely that you’ll be renting it out, but is it best to rent it out on a temporary or long-term contract?

Is it better for landlords in Spain to rent to temporary or long-term tenants?

Your decision to rent out to temporary or long-term renters will of course be influenced by whether or not you intend to use your property yourself during parts of the year, but if not, it’s worth keeping in mind what the differences are. 

Besides the duration of the contract, the laws that govern each situation are different and the tax implications differ too.

READ ALSO: What are the requirements for landlords to rent out a property in Spain?

Long term contracts

Renting out long-term is governed under the Urban Leasing Law (LAU), which aims to provide shelter to families permanently and indefinitely.

It is possible to update the rent each year, depending on the price index or specific regulations at the time.

For example, in 2024, there is currently a three percent price cap. This means that you won’t be able to raise the rent on contracts that are already in force above three percent. The rental cap, however, does not apply to new contracts signed, or those signed after 2019.

Long-term contracts have a minimum duration of five years, however, your tenants can leave any time after six months as long as they give 30 days’ notice.

If you decide you need the property for yourself, you must wait until one year has elapsed on the contract and then give your tenants two months to vacate the property.   

If you decide to sell the property on the other hand, your tenant has the right to stay for up to three months or until the property is sold.

READ ALSO – Renting in Spain: When can a landlord legally kick out a tenant?

Temporary contracts

Regarding temporary rental, the law frames it under the label “rental for use other than housing”.

Temporary contracts must be for a minimum of 32 days, any shorter than this and they would be considered tourist rentals. Rentals to tourists are covered under a completely different set of rules and regulations and in many places require a tourist licence too.

READ ALSO: The rules for getting a tourist licence to rent out your Spanish property

Temporary contracts must also not be longer than 11 months. Beyond that time it would be considered a long-term rental and a long-term contract up to five years like above, would need to be issued.                                                                                                 

There is more flexibility when setting rents for temporary contracts. These are typically higher than long-term rents because of various factors, such as the addition of furniture, bills and wi-fi being included and the fact that they’re often rented out in high season. 

It’s worth keeping in mind that a high tenant turnover carries a slightly greater risk than when you rent your property out long-term. You or a management company will need to be more involved too.  

READ ALSO: Why you should consider renting out your property in Spain to students

It’s important to consider taxes when deciding to rent out to temporary or long-term renters. Photo: Andrea Piacquadio / Pexels

Declaring tax on rent from long-term contracts

You must pay taxes on your net income if you rent out long-term.  

This means adding up all the gross income for the year and deducting all the expenses involved with the rental. The following expenses are deductible:

– Waste collection fee
– Real Estate Tax (IBI)
– Insurance in case your tenants can’t pay the rent
– Home Insurance
– Community expenses
– Mortgage interest
– Real estate commissions

As the apartment serves as the tenants’ habitual residence, the tax authorities will also apply a 60 percent bonus on the net income before subjecting it to tax. This means the amount subject to personal income tax is only 40 percent of the net rental income.

These bonuses may be even higher if the conditions of the new Housing Law, introduced in 2023, are met.

Declaring tax on rent from temporary contracts

You must declare the income from all the temporary contracts that occur during the same fiscal year.

Expenses can be deducted just as before, but these may be different such as cleaning services between tenants and household bills, if they’re included.

You are also taxed on your net income, however, there are no bonuses applied like with long-term contacts as it is not considered to be the tenants’ main residence.

This means you will pay tax on 100 percent of the net income and not 40 percent like above.

You will also be charged tax on any time the apartment has been empty. This amount will depend on the cadastral value of the home and the number of days there hasn’t been anyone staying in it.

Declaring tax on rental income as a non-resident

If you’re a non-resident who owns a property in Spain and rents it out, the rules on taxes will be slightly different.

As a non-resident, you must pay income tax on rent earned in Spain as well as local property taxes such as waste tax and IBI.

If you rent your property out temporarily then you will need to submit quarterly tax returns, not just annual ones. You will also be charged tax for the periods when your property was empty. 

Those from the EU will be charged 19 percent, while everyone else will be charged 24 percent.

It’s very important to remember that if you’re from a non-EU country, such as the UK, the US or Canada you will not be allowed to deduct any expenses from your rental income, therefore you will pay tax on the full gross amount you earn.

To find out more, read our guide to non-resident tax in Spain.

Conclusion

The answer as to whether temporary or long-term contracts are best for landlords will completely depend on your situation and your preferences.

Long-term contracts are easier because you won’t have so much turnover and won’t have to be as involved. There are also various bonuses and tax breaks you can benefit from.

You can earn more from temporary contracts, but this means you will also pay more in taxes too and won’t get any bonuses. It will also take up more of your time, however, it’s a good option for those who want to use their property themselves for part of the year. 

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