Yes, we must pay taxes for the rental of homes for tourist use, houses or flats, including those contracted through Web platforms such as Airbnb, Wimdu, Homeaway, Hundredrooms, Niumba-Tripadvisor, Weguest-Booking.com and similar (impossible to mention them all).
Hacienda has all the information.
From 2018, the companies that manage the websites that put owners of homes for tourist use with its clients, as well as all those who intermediate in any way, are obliged to send the information to the Spanish Treasury through the new model 179.
In January, 2019 will declare all the information referring to the 2018 year and the data that must be included in said statement are the following:
- Name and DNI (or NIE or NIF) of the owner of the home offered.
- Name and DNI (or NIE or NIF) of the person who hires the rent.
- Identification of the house: cadastral reference and complete address.
- Rental amount.
- Start date of the rental and days of use.
There are other data that are also requested in the declaration, such as the means of payment, the contract number or the date of the intermediation in the operation, although they are not mandatory.
It can be interpreted that this obligation of information includes all rentals for tourist use of homes located in Spanish territory or that are owned by tax residents in Spain, although the latter is impossible for the society obliged to declare.
The annual nature of the declaration that will include all rentals of the 2018 year is exceptional, since from 2019 the Web platforms for renting tourist homes must submit the 179 model declaration quarterly.
Renting homes for tourist use is an income that must be included in the Declaration of Personal Income Tax (IRPF)).
Attention: even if our income is not very high, the mere fact of having rental income could generate the obligation to present the Personal Income Tax Declaration. This will happen when the total of the total income from work, capital or economic activities, or capital gains exceeds 1.000 euros.
We must consult the criteria that determine the obligation to present the declaration.
2.1 If services are not provided by the hotel industry - that is, if the cleaning, change of household linen and similar services are only carried out before and after the rental period, and never during the rental period - we must declare this rent in the Real Estate Capital Income section.
The services of punctual repairs and cleaning of common areas of the building can also be provided, without this implying any provision of services specific to the hotel industry.
From the income received we can subtract expenses such as maintenance, interest on the mortgage for the acquisition of the property, the IBI and the amortization (3% of the Cadastral Value of the construction), following the same rules and limits as for any other type of rental.
Only the proportional part corresponding to the period of the year during which the dwelling was rented can be subtracted from each expense.
The 60% reduction can not be applied to the obtained yield, since the objective of the same would be to favor the rental of permanent housing to cover this basic need, which does not apply in the case of tourist rental.
2.2 When, in addition to the rental of the dwelling itself, the provision of services specific to the hotel industry, such as cleaning, change of household linen and similar items during the rental period is included, this rent must be declared in the section on Economic Activities. All the rules corresponding to the taxation of this type of income will apply, which we can not detail here by its extension.
The rentals of tourist homes must also be declared in the section on Economic Activities Returns, although the provision of services specific to the hotel industry during the rental period is not included, when a person is hired under the labor regime and for their management. full time.
Value Added Tax and Onerous Transfer Tax.
We summarize below the conclusions of the taxes that apply to the rental activity of homes for tourist use, without explaining in detail the network of attachments, exemptions and exceptions that lead to these conclusions because, once again, they make it difficult to understand the Law on Value Added Tax (VAT) for the taxpayer, in a very significant way .
3.1 If services are not provided by the hotel industry - that is, cleaning, change of household linen and similar services are only carried out before and after the rental period, and never during the rental period - the rental of homes for tourist use It must not be taxed by VAT but it must be taxed by the Tax on One-dimensional Patrimonial Transmissions. We will have to consult the rates and models of each Autonomous Community. The amounts are usually not high, so the most cumbersome is the completion of the process of the declaration. The use of the Digital Certificate can be of great help to us.
3.2 When, in addition to the rental of the dwelling itself, the provision of services of the hotel industry, such as cleaning, change of household linen and the like during the rental period is included, this rent must be taxed at the tax rate of 10% . In this case also apply all the obligations of Registration in the Tax Census, VAT settlements, billing obligations, books, invoice registers issued and received, etc.
Loss of the condition of habitual residence.
We believe it is convenient to make special mention of the problems that are currently generated when what we rent, even for a very short period of time, is our usual home. In this case, many of the deductions, exemptions and other tax benefits applicable to the habitual residence may not be applicable if we have rented it, even for a very short time.
And this is because, in order to apply the exemptions or deductions in the Personal Income Tax, in the Wealth Tax, in the Inheritance Tax or any other, the regulations require that the housing be inhabited by Effectively and with a "permanent" nature by the taxpayer, for a continuous period of at least three years (IRPF Regulation).
The rental of your own home, even for a very short period of time, constitutes a breach of the aforementioned requirement, according to the criteria of the Treasury. And this entails the loss of the right to apply the exemptions or deductions for the habitual residence.
In case you rent a room or part of the house, the tax benefits will be reduced in the proportion of the rented area, with respect to the total of the house.
It is important to take into account these effects of renting one's home, in order to avoid losing significant tax benefits such as, for example, exemption for sale for over 65 years.
Make sure you do not rent your home, in whole or in part, for 3 years if you want to apply some deduction or tax exemption.
The foregoing also applies to the exemptions, deductions or bonuses of the Wealth Tax, in the Inheritance Tax. Given that these taxes do not include a specific definition of what is considered a habitual residence for the application of their own exemptions, it is necessary to refer to the definition given by the Personal Income Tax Regulations, mentioned in the previous paragraph.
We can understand that the Treasury makes a restrictive and "non-extensive" application of tax benefits, strictly applying the definition of habitual residence. But in cases such as the one mentioned, it seems that the norm does not contemplate realities that arose after its drafting. It is surprising that a taxpayer loses the exemption of the habitual residence in his income tax, or that the deduction for reinvestment of habitual residence can not be applied, due to the fact of having rented his house during a weekend. It could be debated whether that was the spirit of the rule when the wording was drafted and adapted in the manner considered appropriate.
To natural persons not resident in Spain and to companies that also rent homes for tourist use in Spanish territory, other taxes are applicable, such as the Tax on Economic Activities, the Non-Resident Income Tax and the Corporation Tax. Check with your advisor.
This article is a summary and compendium of many standards, so it can not be understood as applicable regulations. It is convenient to consult each particular case with a specialist advisor in homes for tourist use, since there are many nuances and variations that have not been included in the text to allow a better understanding.
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