The Spanish tax services will receive for the first time in 2019 information on revenue from tourist rentals in the year 2018. They will be transmitted by digital booking platforms such as Airbnb, Homeaway, Wimdu, Navasol, etc. Hundreds of thousands of homeowners in Spain are concerned including tens of thousands of foreigners. And among them, several thousand English speaking owners. If you have not made your quarterly returns in 2018 or if you do not know how to make them, this article was written for you …
The time of income from undeclared tourist rentals is over in Spain. Even if you make a single tourist rental on the year, you are required to make four quarterly tax returns (model 210) if you are a non-resident in Spain, and report these income to the IRPF if you are resident . We can assist you in these steps.
OBLIGATION OF INFORMATION TO TAX SERVICES SINCE JANUARY 1, 2019
Tourist rentals via digital platforms have multiplied in recent years. In 2016, for the first time, the capacity of “pisos turisticos” – the tourist rental offer (362,000 beds) exceeded the traditional hotel offer (330,000 beds).
In 2018, there were new regulations put in place by municipalities to limit and regulate this activity. All major cities of Spain have been concerned, Madrid, Barcelona, Valencia, Palma, Malaga, Seville, Bilbao, etc. It is now the turn of the Spanish tax authorities to put pressure on the owners. Since January 1st, 2019, the reservation platforms of the tourist hirings are in the obligatory to transmit to the tax office the detail of all their operations on the Spanish territory. The tourist rental income for the year 2018 are therefore the first concerned.
The tax services had contacted 21,500 owners for their tourist rentals in 2016 and 136,600 in 2017. It is likely that this figure reaches 300,000 this year with the implementation of this new procedure. And only a minority of them declared these tourist revenues so far!
INFORMATION TRANSMITTED BY BOOKING PLATFORMS
- Identity of the owner of the dwelling
- Owner of the right under which the housing is transferred (if different from the owner of the dwelling)
- Identity of the tenants.
- Property subject to the lease
- Number of days of occupation
- Amount received by the principal of the right
- Contract number assigned through
- Rental start date
- Payment date
- Identification of the payment method used
Hard to find other info to give!
DEFINITION OF TOURIST RENTALS
According to the tax authorities, a tourist rental is the temporary transfer of the use of a furnished and equipped housing under conditions of immediate use, the offer being marketed through tourist supply channels, and this with a profit.
Hotel accommodation services are different from tourist rentals by a number of services, such as reception and ongoing assistance, daily cleaning service, daily change of sheets and towels, making the customer’s choice available. other services (laundry, luggage storage, newspapers, reservations, etc.) and, sometimes, the provision of catering services.
The non-hotel tourist hirings are considered as an activity subject to the tariff pricing of the First Section relating to the “Alquiler de viviendas” (rental of housing). They are exempt from VAT (IVA in Spain).
TO DECLARE EACH QUARTER FOR NON-RESIDENT RENTERS
If you are resident in Spain, the net income from tourist rentals is to be declared in your annual tax assessment under the IRPF (“Impuesto sobre la Renta de las Personas Físicas”), the personal income tax. physical).
Net income is revenue less tax-deductible expenses. The 60% rebate for rentals (provided for in section 23.2 of the IRPF Act) is not applicable because they are temporary rentals and not permanent rentals.
Please note: if you provide hotel services in a tourist accommodation, you are subject to the tax on economic activities (group 685: tourist accommodation outside the hotel) and VAT at a reduced rate (10%).
TO DECLARE EACH QUARTER FOR NON-RESIDENT RENTERS
All income from tourist rentals in Spain is to be declared in Spain even if you are a non-resident.
If you act as a natural person, these incomes are considered and taxed as “rendimiento de capital immobiliario” (return on real estate capital). The income to be reported is the total revenue, with the possibility of deducting expenses or charges provided for in the IRPF if the renter is a resident of the European Union (plus Iceland and Norway). The tax rate is 19% for EU residents and 24% for others. The reporting template is template 210 that must be submitted by the 20th of the month following each quarter, even if the quarter did not record any receipts.
Corporations are subject to reporting on the corporate tax model and at a tax rate of 25%. Their declarations are also quarterly (model 202).
AT YOUR DISPOSAL TO REALIZE YOUR DECLARATIONS
As real estate advisors and assisted by our lawyers specializing in real estate law, we are at your disposal to make the quarterly and annual mandatory declarations to the Spanish tax authorities. Send us an email at firstname.lastname@example.org. We can also assist you in getting ready for the year 2020. Finally, do not hesitate to contact us in case of problems with the Spanish tax authorities.
Important Information: Cancellation of the Tenancy Act !!!
We presented the main articles of the Decree-Law 21/2018 adopted on December 14, 2018 by the Spanish Council of Ministers concerning the new regulations on rentals. It aimed to modify the rules of the rental market in Spain in favor of tenants.
Well, forget everything! The Decree Law was canceled by the Congreso de los Diputados on January 22nd. Consequence: return to the old law of 2013 on Rentals (ley 4/2013). In particular, the lease term at 3 years and the unanimous opinion of the co-owners for the bans on tourist accommodation.
With more than 20 years of experience in real estate acquisition procedures in Spain, we are at your disposal to assist you with all the necessary steps from the search for a property to services offered after the acquisition. When you are buying a home in Spain we help with organizing the visits of properties, the legal verification of the properties, the obtaining of a mortgage, the administrative procedures and the signature of the different notarized documents.
Do not hesitate to contact us!
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