Although in recent years renting out private accommodation for tourism purposes has significantly increased, the first uncertainty that arises is the tax treatment that should be applied to this business activity.
Taxpayers will have different tax obligations, depending on whether they are tax residents in Spain or not.
Additionally, although the Value Added Tax (VAT) Act understands that hosting services when including services specific to the hotel industry include a VAT percentage, this is usually not the case for tourist apartments, where a property is made available for rental, therefore you should be aware that the services below will not be considered services of the hospitality industry, meaning you don’t have to charge VAT for your holiday rental:
- Cleaning service at check-in and check-out of the contracted period.
- Change of linen at check-in and check-out of the contracted period.
- Cleaning service of the communal areas and the urbanisation.
- Technical support and maintenance services for possible repairs (plumbing, electricity, glassware, blinds, locks and electrical appliances).
Nevertheless, you shouldn’t forget that the income received from holiday rentals is levied by the corresponding tax, depending on whether you are a tax resident in Spain or not.
These returns will be declared by the owner of the property as returns of capital assets, without being able to benefit from any reductions applicable to long term rentals due to only covering the requirement of temporary nature.
Additionally, the periods during which the property is not rented out, an income imputation will be generated, just like with an ordinary property.
As a tax resident in Spain, the declarations must be submitted during the income tax campaign, from April to June of the year following that which corresponds to the return.
However, non-resident taxpayers will need to declare by means of the 210 model the income received on a quarterly basis, for each taxpayer that owns a property. The percentage subject to taxation varies depending on whether they are resident in countries included in the European Union, Iceland and Norway which are taxed at 19%, while the remaining pay 24%.