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PROPERTY

How Spain’s Asturias region plans to limit short-term holiday lets

Asturias is set to roll out limits on Airbnb properties and other short-term rentals even though the green northern region receives far fewer tourists than other parts of Spain, proof of how far-reaching the country's rent crisis has become.

How Spain's Asturias region plans to limit short-term holiday lets
The coastal town of Ribadesella in Asturias receives hoards of tourists during the summer months. Photo: Cayetano Gros/Unsplash

The Asturias regional government is updating its tourism laws in order to soften the impact of short-term holiday lets on their local property market.

Nestled between Galicia and Cantabria along Spain’s northern coast, Asturias isn’t a favourite spot among foreign holidaymakers, but during the summer months hundreds of thousands of Spaniards choose to spend their holidays there due to the cooler weather, which has resulted in the proliferation of Airbnbs, higher rents overall, and many landlords only giving long-term tenants 10-month contracts so they can instead let out their properties to tourists for astronomical amounts during July and August.

Rents increased by 7.9 percent on average in Asturias in 2023, according to property portal Idealista.

As a result, Asturian authorities are trying to intervene. Limits on the number of short-term rentals, including requiring permission from neighbours before they are allowed in shared buildings, as well as a ban on renting out single bedrooms and giving more power for local councils to try and protect property markets from tourist properties are all touted as measures to be introduced in the northern Spanish region.

This comes as regions around Spain try and find ways to limit tourist rentals. In recent years, especially post-pandemic, an influx of tourists and high-earning foreign digital nomads to Spain staying in temporary accommodation such as Airbnb has contributed to rental prices skyrocketing. In cities such as Málaga and Barcelona, the problem is such that some locals are being priced out of their own neighbourhoods within the space of a couple of years.

READ ALSO: ‘Get the f*ck out of here’ – Spain’s Málaga plastered with anti-tourism stickers

Other factors causing this spike in rents are the overall lack of stock (especially social housing), high demand among Spaniards as employment in the country increases and difficulty in accessing mortgages and properties to purchase, leaving them with no other option but to rent.

Though there is no fixed date for approval, the Asturias government is hoping to quickly find a consensus between the different parties in its regional parliament, town councils, homeowners associations and business groups.

Gimena Llamedo, vice president of Asturias, says the regional government will move forward with reforms to combat what she sees as the problem of tourist rentals at both the national and local level: “It is a national reality and in Asturias we have already detected some of them. We want to anticipate major problems before they arise as we’ve always done before,” she said.

The Asturias regional government held a public consultation prior to the proposed reforms, which received more than thirty suggestions from business and tourist associations and private owners. “The high level of participation demonstrates the interest in this issue,” Llamedo adds.

New rules

As part of the proposed rules, homeowner’s associations in a building will be required to give their consent for a tourist accommodation (known as una Vivienda de Uso Turístico or VUT) or holiday home (vivienda vacacional or VV) to be opened and operated in their building.

READ ALSO: La Comunidad – What are my responsibilities if I own a property in a building in Spain?

That is to say, landlords will need to be legally required to get the explicit consent of the la comunidad if they want to operate any type of tourist accommodation within a shared building. 

Another of the proposed changes is to ban single bedroom rentals and for landlords to use entire tourist homes and flats. Owners operating tourist rentals in the region will also need to have water and electricity consumption registers fitted in their properties.

The reform will also likely introduce changes to definitions for “saturated tourist areas”, which will be renamed “protected tourist areas”. The government will have the power to declare a council area or specific municipality protected when tourists put the environment or cultural heritage at risk, or when the maximum levels of tourist supply and demand are exceeded, though it is for now unclear what those thresholds would be or how’d they be measured.

Once the legal changes have been made and approved, tourism companies and landlords already registered in the Register of Companies and Tourism Activities in the region will have a maximum period of six months to adapt to the new regulations.

Those that do not comply with the new regulations will be hit with a hefty new set of fines for non-compliance. Minor infractions are set between €150-1,500; serious offences between €1,501-€15,000; and very serious ones between €15,001-€100,000.

In Asturias there are currently 5,696 properties registered for tourist use, according to the study from the University of Oviedo.

The number of tourist rental flats grew exponentially after the pandemic: in the period between 2010-2019 they opened at an average of 250 a year, a figure that has soared to over 600 a year from 2020.

READ ALSO: Which cities in Spain have new restrictions on tourist rentals?

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VISAS

Spain’s soon-to-end golden visa: Can I still apply and what if I have it already?

Last April, Spain's government said it intends to axe its property-based golden visa scheme, but is it too late still apply, how long does it take and what happens if you have the visa already? The Local spoke to an immigration lawyer to find out.

Spain's soon-to-end golden visa: Can I still apply and what if I have it already?

The golden visa programme, also known as the visado de residencia para inversores in Spanish, grants non-EU nationals residency in Spain when they buy a property in Spain worth €500,000. 

It can also be obtained by investing €1 million in shares in Spanish companies, or €2 million in government bonds, or having transferred €1 million to a Spanish bank account. 

In early April, Prime Minister Pedro Sánchez announced he was axing the property-based golden visa, although there’s no new law in place yet.

READ MORE: What the end of Spain’s golden visa means for foreigners

More recently the government’s junior coalition party Sumar had said that they have now filed an official bill in the hope they can scrap it as soon as possible.

Sumar spokesperson Íñigo Errejón told journalists that the visas are a privilege that must be scrapped “immediately” because they have an inflationary effect on the housing market.

All of this means that those still interested in still getting the visa are confused. They don’t know when the scheme will end, if they still have time to send in applications and what will happen to those who are already in the process of applying.

In order to help answer some of these pressing questions, The Local Spain contacted María Luisa De Castro from CostaLuz Lawyers in to find out more. 

Q: When will the Golden Visa scheme officially end?

A: “The exact date for the official end of the Golden Visa scheme has not been fully detailed yet. Initially, changes would be implemented in the near future, potentially within the next few months. Some optimists believe it might be a bluff by the government and that it may not be implemented after all.”

READ MORE: When will Spain’s golden visa scheme officially end?

Q: Has the process of applying changed?

A: “As of now, the process remains unchanged, so it’s exactly the same as before.”

Q: Can people still apply for now?

A: “Applications are still being accepted. However, given the recent announcement, it is advisable for prospective applicants to act swiftly.”

Q: What will happen if I’m in the middle of the application process?

A: “For those currently in the middle of the application process, their applications will still be processed under the existing rules. Once the new regulations come into effect, it will very likely come with some transitional provisions to handle ongoing applications.”

Q: What about those who want to invest instead of buy a property?

A: “The visa remains available for other investment options such as investments in companies, public debt, etc.”

Q: What if I already have the golden visa through property investment, will I be able to renew it in the future?

A: “Our opinion (and that is what we will defend) is that renewal rights are acquired when the visa is granted and therefore cannot be subsequently reduced, as this would constitute a retroactive limitation of individual rights. The Spanish Constitution prohibits retroactive application of laws that are not favourable or that restrict individual rights once they have been acquired.”

Q: How quickly can I get the golden visa?

A: This depends on where you apply from. According to the CostaLuz Lawyers, if you’re applying outside the countryYou should apply at least 90 days before you plan to travel to Spain”. If you’re inside Spain, you can apply through the Unidad de Grandes Empresas. This could take anywhere between 20 and 60 days.

CostaLuz Lawyers argue that it’s not necessary to wait until the property purchase has gone through, that you can apply with your initial contract or a statement from your bank in Spain, certifying that you have deposited at least €500,000.

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