I appreciate my knowledge is very limited on this.
However, my son who has two apartment in Spain which he used to let to holiday-makers throughout the year, stopped doing so when the new regulations came into force. Hacienda don’t get any tax from him any more.
One of the apartment he keeps for his own holiday use, the other has been occupied by a friend, who is on a very low income, for coming up to 5 years, totally free of rent. The friend pays the Electric and water only. My son prefers to take the loss rather than comply with the new rules, which would result in a lot of inconvenience and much lower net income. He also does not have the maintenance and repairs costs associated with letting, damage, wear and tear, theft etc.
I have a friend who has been in the rental business for many years. She is always desperately looking for properties to let. The market in her experience has dried-up since the introduction of the new rules. She says many owners who used to are no longer letting. More hits for Hacienda’s income.
I also am aware of other properties which used to be let, are no longer available.
As I said my experience in this area is small but if my snap-shot is a reflection generally, then Spain’s potential income from tourists is in trouble. Unless of course they are all now staying in hotels !