The possibility to rent out your property in Valencia Region has become very difficult once the new Law for Tourism, Leisure and Hospitality has been passed last 7th July, 2018. According to the new regulation, any property (apartment, semidetached houses, etc.) could not be aimed to be short term rented out unless a proper certificate of urban compatibility has been issued.
On 16 February 2017, the Spanish Constitutional Court has issued a decision declaring that the Local Tax on The Increase of the Value of Urban Land, commonly known as "Plusvalía Tax" can not be considered as due when capital gains on conveyed urban property are absent.
The Supreme Court has recently issued a decision regarding the payment of local rates corresponding to the year when a property is sold. According to the highest Tribunal in Spain, unless it is otherwise expressly agreed by both parties, when a property is transferred, every party of the contract shall be liable to pay the local rates proportionally to the time they have owned the property during the year.
This is not affecting the claim of the tax by the Local Tax Office that shall be made to the person appearing as owner on 1st January.
Therefore, it is advisable to include a clause in that respect in the contract in order to avoid further worries.
