Chris Haslam, The Sunday Times

If you’re about to book a villa in Spain, watch out: a tax clampdown could jeopardise your holiday

As Madrid announced new legislation to crack down on the unregulated rental of holiday apartments, the Spanish tourist board advised all tourists to check that any property they consider renting is legally registered.

Up to 80% of the 400,000 beds on the Costa del Sol are unregistered for income tax, and the taxman has promised to find them. Last year, inspectors recovered £600m by cross-referencing 45,000 properties advertised on the internet with local tax records, then swooping on individuals and agencies along the Costas.

This week, officials in Benalmadena initiated seizure proceedings on 100 homes, indicating that 6,000 more, 4,800 of which are owned by foreigners, face similar action if back taxes are not paid.

“It’s the end of the honeymoon,” admitted Ramon Suner, an agent in Lloret de Mar, “but regulation ultimately benefits the holidaymaker.” Claus Sorensen, of www.spain-holiday.com, was sceptical. “It has nothing to do with taxes,” he claimed. “The hotels are behind this. They have been losing lots of business and now they’re putting pressure on the politicians, especially in Barcelona.”

Sydney Henderson, MD of Columbus Insurance, warned that those booking black-market accommodation did so at their own risk, explaining that while mishaps such as theft and personal injury occurring in unregistered villas would be covered by most policies, holidaymakers would have no recourse in the event of double bookings, misleading advertising or fraud.

The Sunday Times called the tourist office in Roses and found that four out of five villas randomly selected on the internet were unregistered.