Three figures to work out before you decide
Your last tenant has handed back the keys. Or perhaps you’ve inherited a flat and are still deciding what to do with it. Before you put it on the market, work out what it costs to keep the flat empty, how much rent you could charge and how much you’d be left with if you sold it. If you might need the flat yourself, think about when. That date could make a difference to your decision.
What does it cost to keep a flat empty?
Start with last year’s bills. To get an idea of what it would cost to wait a few months, check:
- your local property tax (IBI) and regular building service charges
- insurance and any standing charges for utilities you keep connected
- any one-off charges approved by the owners’ association and any repairs still to be done
If the flat is available for your own use and is not your main home, you may need to declare imputed property income on your Spanish income tax return (IRPF), even if you receive no rent. Barcelona’s IBI rules also provide for a surcharge in certain cases of long-term vacancy. Whether it applies depends on factors such as how long the property has been empty and whether there is a valid reason for it. Spanish Tax Agency · Barcelona’s IBI rules, Article 10
Which documents should you have to hand?
Start with the title deed and your latest IBI bill. If the flat has been let before, look out the previous tenancy agreement and the most recent rent receipt so you can check what was charged. If you inherited the flat or own it jointly, a Land Registry extract, known as a nota simple, will show who is listed as the owner and whether any charges are registered against the property. Spanish Land Registry
Letting the flat and keeping ownership
If you want to keep the flat and earn a regular income, start by finding out how much rent you can legally charge. Barcelona is designated as an area under housing market pressure under Spanish law. For a new tenancy where the flat will be the tenant’s main home, the rent cap depends in part on the property’s rental history:
- If a residential tenancy was in force at any point in the past five years, the cap is generally based on the last rent charged under that agreement, with any applicable adjustment.
- If no residential tenancy was in force during that period, the cap is set by the national rent reference index.
- If you are classed as a large property owner (gran tenedor) and both caps apply, the lower figure takes precedence.
Barcelona’s designation in Spain’s Official State Gazette · Spanish Urban Tenancies Act, Article 17
Before advertising, check that the occupancy certificate (cèdula d’habitabilitat) and energy performance certificate are both valid. To estimate what you’d actually earn, subtract the costs you’d still cover, such as maintenance and insurance. If you’re considering rent guarantee insurance, check what the policy covers, how long the cover lasts and what’s excluded. Catalan government guidance on tenancy documents
If you’re interested in letting the flat at an affordable rent, take a look at the Barcelona Rental Housing Pool. Through the scheme, the Barcelona Housing Consortium helps match owners of empty flats with prospective tenants. Barcelona Rental Housing Pool
Selling the flat and working out what you’d take home
A guide valuation gives you a starting point. From the likely sale price, deduct the costs of selling, any outstanding mortgage balance and any taxes due. The sale may give rise to a capital gain or loss for Spanish income tax purposes. Check whether the municipal tax on increases in land value (plusvalía municipal) also applies. Spanish Tax Agency · Barcelona City Council guidance on plusvalía
If the flat needs work, get it valued as it stands before committing to a renovation. Compare the cost of the work with the extra amount you might get when you sell.
Keeping it empty while you decide
Waiting can make sense if you’re sorting out an inheritance, planning repairs or expecting to move back in. Set a date to revisit the decision and make a note of what you need to find out before then. You might need a quote for repairs, a conversation with the other owners or a clearer idea of when you’ll need the flat.
In the meantime, agree who can check on the flat and deal with any notices from the owners’ association. If there’s a leak or something needs fixing, get a quote. Check what your insurance policy says about periods when the property is unoccupied.
If you’re thinking of letting it in the meantime, check how long the tenancy could run and what extensions may apply. That will help you work out when you might be able to move back in. Spanish Urban Tenancies Act, Articles 9 and 10
Put the three options side by side
Write down your estimates and the dates that matter. If you’re relying on the sale to buy another home, note how much cash you’ll need and by when. If you’re leaning towards letting, see what happens to your first year’s income if it takes longer to find a tenant or you need to pay for a repair. And if you’d rather wait, set a budget for keeping the flat empty. That way you can see which option still works if costs or timings change.
Want to know what your flat is worth?
From our office in Poblenou, we can help you work out what your flat is worth and what selling or letting it would involve. If you’re still weighing up your options, start with a free, no-obligation guide valuation.
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