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TOURISM

Why is Spain cracking down on Spaniards cooking meals for tourists?

In recent years ordinary Spaniards have been capitalising on their country’s much admired cuisine and culture to sell ‘Spanish eating experiences’ to tourists from their own homes. But things are about to get a lot stricter for this unregulated occupation.

Why is Spain cracking down on Spaniards cooking meals for tourists?
Photos: Deposit Photos

What’s it all about?

With more and more tourists in Spain on the lookout for authentic local experiences, normal Spaniards have started exploiting their innate ‘Spanishness’ to make a quick buck, thanks in large part to the help of platforms such as Airbnb Experiences and Eat With.

The concept is simple. The ‘home chef’ posts an online ad in which they invite strangers (often foreigners) to come dine with them and experience what Spanish food culture is all about, at a price.

Once the guests have paid for their homemade meal, usually costing between €30 and €80 per person, they are given the address and join the host at their home.

Given Spain’s well-established outdoor eating habits, many of these ‘gastro hosts’ don’t actually get their hands dirty in the kitchen, but rather act as guides on food tours through their towns and cities, selling their inside knowledge on the best hidden gems to culture-hungry travellers.

Why does the Spanish government have a problem with this?

Tourism is big business in Spain, and in much the same way as the influx in short-term home rentals has shaken up the hotel industry status quo, this increasingly popular strand of the digital world’s so-called collaborative economy is starting to get noticed by the Spanish taxman.

Hosts get charged roughly 20 percent by the platforms for every homemade meal sold, but the remaining 80 percent goes straight into their bank accounts.

That’s because this new industry remains unregulated and unrecognised in Spain, with hosts under no legal obligation to register as self-employed even though monthly earnings can be upwards of €3,000 for popular hosts.

So is Spain’s tax agency just after its cut of the tortilla?

Well, yes, but that’s not the only reason for the planned crackdown.

As with other new and initially unregulated digital industries that have allowed normal people to make some extra money on the side, the lack of rules means things have the potential to go wrong or unchecked. 

The primary focus of the Spanish government is to ensure that health and safety standards are enforced for these homemade food services.

Spain’s Ministry of Health is currently drawing up a new decree that will regulate the practices, ensuring that similar hygiene and quality standards to those for restaurants and bars are met in each host household.

According to Spain’s Food Safety Agency, the current limbo would mean that if any home visitor or customer were to get food poisoning, “the responsibility would always fall on the shoulders of the company in charge”.

That means that currently any host or chef is completely exempt of any guilt if their guests suffer the consequences of their potential negligence. 

What next for this trend in Spain then?

It seems highly likely that once Spain’s ‘homemade meals for tourists’ trend is enshrined in labour laws, hosts will have to start declaring their earnings along with having to abide by official food standards.

Back in January Spain’s Hacienda tax agency sent letters to 120,000 property owners in Spain with their homes on Airbnb and other platforms, warning them they had to declare what they were making from the short term rentals.

The vast majority complied.

“We could have sent them letters telling them they had to paid for everything they hadn’t declared but what we prefer is to increase the amount of voluntary taxpayers before acting on that,” Agencia Tributaria head Jesús Gascón said at the time.

Something similar could well happen to Spain’s rogue food hosts in the coming months, especially given the increase in claims by Spain’s restaurant and hotel industry that they represent unfair competition for them.
 

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For members

RENTING

Who really owns all the Airbnb-style lets in Spain?

Holiday lets have been pinpointed as one of the primary reasons property prices and rents have skyrocketed in recent years in Spain. But who owns these properties, and are rich foreign buyers the straw that broke the camel’s back?

Who really owns all the Airbnb-style lets in Spain?

By the end of 2023, there were 340,000 short-term holiday lets in Spain, according to the country’s national stats body INE. 

Although they barely represented 1.3 percent of the total number of homes in Spain last year, the number of holiday lets increased by 9 percent after increases in all 17 regions except the Balearic Islands.

According to data from Spain’s Tax Agency, there are about 2 million rented homes in the country. 

The number of holiday lets fell as a result of the Covid-19 pandemic but it’s been picking up at record speeds, especially in 2022, where an increase of more than 16 percent saw 41 holiday lets set up every day. 

The autonomous regions with the most short-term lets were Andalusia (79,065), followed by the Valencia region (58,337), Catalonia (52,026), the Canary Islands (44,376), the Balearic Islands (26,507), Madrid (16,970) and Galicia (18,080).

If the figure for Madrid strikes you as low that’s because the Spanish capital has a big problem with holiday lets without a licence, which in turn calls into question the real figure of Airbnb-style rentals across the country as a whole. 

READ ALSO: Why Madrid is struggling with its explosion of illegal holiday lets

According to Spanish tourism association Exceltur, which admittedly has the interests of hoteliers at heart, 60,000 new holiday lets have been added to Spain’s 25 main tourist destinations so far in 2024, describing the rise as “out of control”. 

What’s clear is the number of apartamentos turísticos or viviendas turísticas is on the up and that its negative impact for long-term residents who rent, particularly in city centre locations, is widespread. 

There are now 28 percent fewer long-term rental properties available in Spain than in 2019 and rents have never been so expensive.

So it’s no surprise that there’s growing discontent among locals particularly in popular tourist spots where rents have spiked, and sometimes a somewhat mistaken sense that wealthy foreigners buying homes in Spain are one of the chief reasons for the current housing crisis (cue the government’s decision to axe golden visas). 

READ MORE: Is Spain’s decision to axe golden visa about housing or politics?

Who owns all the holiday lets in Spain?

So what do we know about the people and companies behind the mountain of Airbnb-style lets that according to Housing Minister Isabel Rodríguez are causing “price speculation” in the market? 

Are they foreign individuals, Spanish landlords or vulture funds capitalising on Spain’s popularity among tourists?

The Spanish government has not released any data illustrating which group owns the most flats, and whether they’re using it for short-term, temporary or long-term renting.

What it did do in 2023 was divide them into two groups: pequeños propietarios (landlords with up to 10 properties) and grandes tenedores (a major or multi-property landlord with more than 10 properties, five in saturated areas).

The best approximation of the structure of property ownership in Spain is that of the Barcelona Metropolitan Housing Observatory (OHMB), which in a study on the subject published in 2022 concluded that 36 percent of rental apartments in Barcelona belonged to landlords who owned more than 10 properties.

The OHMB also found that 79 percent of landlords only have one property they rent out, but crucially, the remaining 21 percent own 61 percent of Barcelona’s stock of rental properties.

Therefore, in the Catalan capital at least, multi-property landlords, investment companies and vulture funds own a sizable proportion of Barcelona’s rental market.

According to property giants Idealista, legislation introduced to limit prices and rents has actually spurred more landlords and companies to ditch long-term leases for temporary lets of a maximum of 11 months (up by 40 percent) and holiday lets of a maximum of 32 days (up by 9 percent). 

From a business perspective, Airbnb-style lets are more profitable than long-term leases as they have no price caps and no nationwide legislation limiting it, so it’s a no-brainer for vulture funds, which bought Spanish real estate at distressed prices and are now capitalising on it.

Caixabank and Blackstone alone own 41,000 rental properties in Spain; how many of them are probably being used now as more lucrative holiday lets?

Spain’s Deputy Prime Minister Yolanda Díaz recently said that property purchases by “vulture funds” and non-resident population represent 40 percent of transactions in Alicante, 38 percent in Santa Cruz de Tenerife, 32 percent in Málaga, 30.85 percent in Girona and 31 percent in the Balearic Islands.

So does that mean that wealthy foreign second home owners own a sizable portion of Spain’s holiday rental market? Not necessarily.

According to Spain’s Real Estate Credit Union (UCI) around 68 percent of international buyers bought properties in the country in 2023 to use as their main home, 21 percent as a second home and just 11 percent as an investment for rental, without specifying if this is long or short-term rental. 

This would suggest that individual foreign investors do not make up a large proportion of ‘the Airbnb market’, even though property purchases by foreigners did hit a record 15 percent last year.

Overall, it can be concluded that the number of tourism rentals in Spain is probably higher than the 350,000 suggested by the Spanish government, and that the role real estate investment firms and vulture funds are playing in warping the country’s rental market is most likely underestimated.

READ ALSO: Spain urges regions to limit Airbnb-style lets in ‘stressed rental areas’

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