What is the difference between an ordinary residential building and a tourist building?

WHAT IS THE DIFFERENCE BETWEEN AN ORDINARY RESIDENTIAL BUILDING AND A TOURIST BUILDING?

The most noticeable difference between traditional housing and tourist developments lies in the services that must be provided to the latter, according to their respective classification, and in the way in which income is obtained from the operation of the establishment for tourism purposes. Tourist apartments are essentially an income product, and their promotion is carried out through the operator designated by the owners, responsible for the management of all tourist apartments in the development. However, the owner is not obliged to allocate his apartment for tourist exploitation, so he can use it as a permanent residence.

CAN I MAKE MY HOME PERMANENT?

You can, simply by informing the manager of this intention and entering into a contract to that effect. Logistically it is necessary to ensure the maintenance of the apartment properly furnished and equipped, in accordance with the respective standards and tourist classification.

USAGE RIGHTS

Owners have the following rights:
1- Benefit from the services provided by the operator, including the minimum services prescribed and approved by law;
2- Receive the amounts negotiated with the operator agreed for the operation of your apartment;
3- Usufruct of your apartment in accordance with the provisions of the contract with the operator, which may not exist in the case of total allocation of the apartment to tourist exploitation;

DUTIES

Owners of accommodation units should pay particular attention to:
1- Comply with the requirements arising from the legal regime of tourist enterprises and other applicable legislation, as well as the regulation and constitutive title;
2- Avoid behaviors that jeopardize the touristic nature of the accommodation unit and the development;
3- Management rights may not be assigned, free of charge or for consideration, in any form, to other operating entities

EXPLOITATION

Operation of tourist apartments can only be carried out by the operating entity, which will be a single entity for all accommodation units, and which will simultaneously be the manager of the condominium.

WORKS

Any and all works must be submitted to the approval of the operator and the other owners.

CAN I SELL MY APARTMENT AS RESIDENTIAL OR DO I ALWAYS HAVE TO KEEP IT AS A TOURIST APARTMENT?

Although the owner may reside permanently in the apartment, the use permit to be issued for the development will always be of a tourist nature, so the apartment will retain that same nature in any case.

DOES MY APARTMENT GUARANTEE ME ANY MONTHLY INCOME?

The monthly income comes from the conditions contracted with the management entity.

WHAT TAXES ARE LEVIED ON THIS INCOME?

The taxation of this income is generally aligned with the nature of the owner as a taxable person, IRS, in the case of natural persons, and IRC, in the case of legal persons. In any case, the tax framework of the persons covered by the corresponding tax obligations will always be subject to confirmation of the respective assumptions, so we recommend the use of specific advice taking into account the characteristics of the specific situation.

IS THE APARTMENT FURNISHED?

The apartment will be furnished and will have the minimum furniture and equipment required by law under the terms of the approved classification for the same

CAN I DIRECTLY SIGN LEASE AGREEMENTS?

The apartment can be put to operation as long as it is through the operator. The contract for the provision of services will always be signed between the Operator and the user of the apartment.
Which entity will exercise the position of Operator Entity in this project?
The Operator will provide all the services inherent to the position, including the following:

· Professional photographs of the property;
· Online management of reservations;
· Pricing management (Revenue Management);
· Digital and marketing management;
· Check-in and check-out;
· Cleaning of the property;
· Laundry of all linen and towels;
· 24-hour customer care service;
· Collection and delivery of the tourist tax;
· Communication to SEF of the identity of the various guests;
· Maintenance management.

IS THE PURCHASE OF A TOURIST APARTMENT SUBJECT TO THE SAME TAXATION AS THE PURCHASE? IMT IS?

Depends on. The acquisition will, in principle, be subject to IMT (however, it will not be possible to benefit from the reduced rates applicable to the purchase or rental for permanent housing). Depending on the use of the apartment (residential or services) and the quality of the buyer, the acquisition may be subject, alternatively, to VAT or IS.

WILL THE IMT EXEMPTION APPLY IN THE CASE OF REHABILITATION?

Depending on the use that the properties may have, purchasers of fractions integrated in a building subject to rehabilitation can only benefit from exemption from IMT on the first transfer, following the rehabilitation intervention. to affect the lease for permanent housing or, when located in an urban rehabilitation area, also own and permanent housing. Since tourist apartments are not, in principle, liable to be rented or used exclusively for permanent housing, this exemption will be excluded from the outset. The apartment will also be subject to IMI (annual tax, possibly paid in instalments)