The Treasury Department has been very clear stating that it “will closely supervise the correct declaration of the income arising from home rentals” and holiday or seasonal homes do not escape from such supervision (beach apartments, apartments rented for specific seasons or rural homes).
A great deal has been said about the innovations that the tax authorities have promoted to improve management each year and homes rented to tourists are not exempt from these measures, which currently include even cross-referring data and “identification of the accounts of origin where the platform for seasonal rentals pays the owners who lease their apartments or rooms.” Also, we invite you to read more about registry of tourist holiday housing in Andalusia.
Therefore, hosts who have not declared such figures will receive a letter from the Treasury Department requesting the payment (within the following 10 working days), specifying that “such communication opens a procedure of tax management control” as this is considered a “serious” offense punishable with a fine.
Following we will explain what you need to know to include these figures in your Income Tax Return. Now, you must be clear about the two stages of the fiscal year for the status of a second home that was acquired to be rented to tourists:
Period when the home is rented:
- Income received must be declared as returns on capital assets.
- Not all the advantages of the rental of a main residence apply to these specific leases.
- There are some expenses that can be deducted such as costs of maintenance and expendable repairs to improve the occupation of the space or the costs assigned to pay the services of water, electricity, telephone and gas bills, among others.
- Taxes will be paid for a net return calculated as follows: total income less expenses to obtain the same.
It is important to know the normative of each Autonomous Community to avoid fines for seasonal rentals. Review the cases of Comarca de la Axarquía, in municipalities such as Algarrobo, Benajarafe, Competa or Torre del Mar. If you need a solicitor or accountant, you can contact us.
Period when the home is free:
Seasonal Rentals
The Treasury Department has been very clear stating that it “will closely supervise the correct declaration of the income arising from home rentals” and holiday or seasonal homes do not escape from such supervision (beach apartments, apartments rented for specific seasons or rural homes).
A great deal has been said about the innovations that the tax authorities have promoted to improve management each year and homes rented to tourists are not exempt from these measures, which currently include even cross-referring data and “identification of the accounts of origin where the platform for seasonal rentals pays the owners who lease their apartments or rooms.” Also, we invite you to read more about registry of tourist holiday housing in Andalusia.
Therefore, hosts who have not declared such figures will receive a letter from the Treasury Department requesting the payment (within the following 10 working days), specifying that “such communication opens a procedure of tax management control” as this is considered a “serious” offense punishable with a fine.
Following we will explain what you need to know to include these figures in your Income Tax Return. Now, you must be clear about the two stages of the fiscal year for the status of a second home that was acquired to be rented to tourists:
Period when the home is rented:
- Income received must be declared as returns on capital assets.
- Not all the advantages of the rental of a main residence apply to these specific leases.
- There are some expenses that can be deducted such as costs of maintenance and expendable repairs to improve the occupation of the space or the costs assigned to pay the services of water, electricity, telephone and gas bills, among others.
- Taxes will be paid for a net return calculated as follows: total income less expenses to obtain the same.
It is important to know the normative of each Autonomous Community to avoid fines for seasonal rentals. Review the cases of Comarca de la Axarquía, in municipalities such as Algarrobo, Benajarafe, Competa or Torre del Mar. If you need a solicitor or accountant, you can contact us.
Period when the home is free:
- Paying taxes for a second home that has been free and/or available for its owners is a requirement of the Treasury Department.
- For instance, if you rent out your house during 10 months of the year, you must declare the Rental Income received. For the remaining 2 months of the year you must file the Non Resident Taxes just for using the house.
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.
Solicitor in Torre del Mar and Velez | Malaga – Andalusia.
