Tourist Licence for Apartment

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ericamol
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Tourist Licence for Apartment

Post by ericamol » August 13th, 2019, 8:48 am

Hi All,

Just wondered if anyone on here has successfully obtained a Tourist Licence for an Apartment since the new law in 2017.
We have just had our community meeting and at last now have a majority vote in favour of Tourist lettings should individual owners wish to apply on our complex. Can anyone advise what proof is required that this has been voted on by the community, will the minutes from the meeting suffice to support an application ? Or does a copy of the Apartments statutes have to be provided ?
Is the application process something we could do without involvement of an agent or lawyer acting on our behalf. If something that we can do can anyone advise what the first step would be to apply and any idea of costs for application with or without assistance. Any help greatly appreciated.

Keefyd
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Re: Tourist Licence for Apartment

Post by Keefyd » August 13th, 2019, 4:57 pm

Hi,
I have an apartment in Cala en Porter and our Owners community also voted in favour of renting last September.
The administrators who represent the Owners community then appointed a third party agent to do all the paperwork for those of us that wanted a licence, for a small fee.
We had to provide a copy of the apartment statutes and the minutes from the meeting, as evidence of the agreement.

Since then, nothing has been achieved, we still don’t have our licences.

To apply, you have to produce a certificate of habitation, which states how many people can live in the premises, but, as our apartments are not residential, Alaior Council will not issue us with these certificates.

So a meeting was held with the administrators, the insular council and the agent to discuss the issue. We were told that we would be able to obtain the licence, but not before Alaior council had agreed their Insular Territorial Plan, which was planned for May.

There was then a change in the ruling political parties in the council, so the Territorial Plan has still not been agreed, so we still have no licence!

We have an added complication, as the vast majority of the apartments on our complex are run as a commercial business and are owned by the bank who repossessed them, when the original owner went into administration. They have a licence to operate tourist apartments, but legally, we private owners are not allowed to use that licence to rent our properties.

With all this bureaucracy and no sign of any conclusion on the horizon, I have decided to sell up and get the hell out of Menorca. With Brexit looming and the additional non resident taxes to pay and no longer able to claim tax relief on expenses and on top of all that, the tourist tax to pay, it is no longer profitable for me to run an apartment as a holiday rental business.

Hope you have more luck!
Lover of everything Menorcan. :jozza:

Keefyd
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Re: Tourist Licence for Apartment

Post by Keefyd » August 13th, 2019, 5:02 pm

Keefyd wrote:
August 13th, 2019, 4:57 pm
Hi,
I have an apartment in Cala en Porter and our Owners community also voted in favour of renting last September.
The administrators who represent the Owners community then appointed a third party agent to do all the paperwork for those of us that wanted a licence, for a small fee.
We had to provide a copy of the apartment statutes and the minutes from the meeting, as evidence of the agreement.

The licence costs about €350 and you also have to provide an energy certificate and we had to complete a form to apply for the licence and a form to agree the agent to act on our behalf

Since then, nothing has been achieved, we still don’t have our licences.The only positive is that we haven’t handed over any money for the work that has been done so far.

To apply, you have to produce a certificate of habitation, which states how many people can live in the premises, but, as our apartments are not residential, Alaior Council will not issue us with these certificates.

So a meeting was held with the administrators, the insular council and the agent to discuss the issue. We were told that we would be able to obtain the licence, but not before Alaior council had agreed their Insular Territorial Plan, which was planned for May.

There was then a change in the ruling political parties in the council, so the Territorial Plan has still not been agreed, so we still have no licence!

We have an added complication, as the vast majority of the apartments on our complex are run as a commercial business and are owned by the bank who repossessed them, when the original owner went into administration. They have a licence to operate tourist apartments, but legally, we private owners are not allowed to use that licence to rent our properties.

With all this bureaucracy and no sign of any conclusion on the horizon, I have decided to sell up and get the hell out of Menorca. With Brexit looming and the additional non resident taxes to pay and no longer able to claim tax relief on expenses and on top of all that, the tourist tax to pay, it is no longer profitable for me to run an apartment as a holiday rental business.

Hope you have more luck!
Lover of everything Menorcan. :jozza:

maycontainuts
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Re: Tourist Licence for Apartment

Post by maycontainuts » August 13th, 2019, 9:16 pm

Selling up and getting out quickly is probably a wise move

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kieronf
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Re: Tourist Licence for Apartment

Post by kieronf » August 13th, 2019, 10:21 pm

If you can sell .....

ericamol
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Re: Tourist Licence for Apartment

Post by ericamol » August 14th, 2019, 9:13 am

Many thanks for your responses. Our community statutes state that the Apartments can only be used for residential use however the interpretation of the word residential is open to question and the community voted that if a majority decision was reached regarding whether they could be rented out that would be the outcome.
I already have the energy certificate with the required category.
I am seeing a solicitor on Friday who is going to advise me further on all of this so we will see.
From one of the replies to my post am l correct in saying any expenditure for the Apartment cannot be offset against any tax due on rental income ? I am thinking of having new air con next year and was hoping l could offset the cost of this.
Many thanks all.

Keefyd
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Re: Tourist Licence for Apartment

Post by Keefyd » August 14th, 2019, 12:27 pm

If you are an EU resident, you can claim tax relief on any expenses you incur in running the property as a rental. You cannot claim for “improvements” in the property.
If you are UK resident, you will be able to claim expenses until we eventually leave the EU, after that you will not be able to claim any tax relief on your rental income.
Lover of everything Menorcan. :jozza:

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