One way of making some money from your holiday property is to rent it out. Most holiday homes are occupied for less than three months a year. Your overseas home is an asset that could generate several hundred pounds a month for you.

If you want to maximise your returns from renting remember that the property must be of the kind that can be easily let out. Things to consider may be that it is close to the sea, reasonably near a major airport and not too isolated from shops. Rental returns of around 10% should not be hard to achieve from property in a sound location.

Spainish Income Tax on Property Rentals

Even if nobody else mentions it, you are liable to Spanish income tax on any income you have in Spain arising from rentals. If you are a resident, you should declare your rental income as part of your earnings and you will be taxed at your normal income tax rate. If you are a non-resident, you are subject to tax on income arising in Spain at the flat rate of 25% - although it has to be said that few owners actually seem to declare a great deal of income from their property!