If you rent your property for holidays in Spain, there are two different tax routes for you:
1) If the rental contract is regulated by the General Rental Act as a “rental for use other than housing”:
* In these cases, there is no obligation to charge VAT to tenants.
* Payment of deposit rent fee is mandatory.
* Income received from the property rental will be reflected in the Annual Declaration of Incomes (Income Tax) as earnings from real estate.
* Expenses incurred for the obtaining of the rental income can be deducted: mortgage loan interest, bank commissions related to mortgage amortization, taxes, community fees, home insurance, value decrease of property ---- all these in proportion to the rental period. Also repairs and maintenance expenses, power supplies and rental agent fee.
* Deposit fee is mandatory. Two months of rent to be paid to the Treasury of the Regional Administration!
* Energy certificate is mandatory if the rental is for a period over 4 months.
2) If you register your second home as "tourist accommodation" in your region, taxes will be as follows:
- The issue of an invoice is necessary for each stay
- You need to apply the corresponding VAT (10%) to the price of the rental
- Quarterly VAT declaration is necessary.
- If your work status for this activity is “autonomo” (independent worker), you will need to make a quarterly declaration of income tax for this
- Some regions regulate a Tourism Tax for this and have regulations on payments of deposits
- Expenses (as in previous Tax Route) are deductible.
You might like to read these posts on Property Rentals
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Contact us if you have some questions on Holiday rentals
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El Batán de Lara (a house for rent, in Benamahoma, Cádiz, South of Spain)