With approval of the Royal Decree 1070/2017, which took effect on January 1, 2019, all persons or entities that have intermediate properties for temporary tourism purposes (holiday rental), must submit an informative statement quarterly. This includes also collaborative platforms like Airbnb or HomeAway. Starting in January, these platforms must file an informative declaration. It contains the identification of both the landlord and tenant, address of the rented house, the time of stay and the money charged in the transaction. In order to carry out this registration, those who rent their house on Airbnb or HomeAway must keep a copy of the identification document of the tenants, like in hotels. Between January 1st and 31st, 2019 the platforms have already filed a declaration for each property for the complete year of 2018. The tax declaration for successive years they will submitt quarterly.
Which type of rental accommodation affects the new law?
The obligation to share data only refers to temporary accommodations used for tourism purposes (viviendas túristicas).The new law does not affect the following types of accommodation:
- Traditional rentals / Long-term rentals,
- tourist accommodation regulated under its specific regulations, such as hotel establishments (hotels, aparthotels, hostels, spas, etc.), rural houses, hostels, campsites, camps, etc and
- accommodations in a “time-sharing” regime.
What specific personal information of the holiday rental do the rental platforms report to the Spanish Tax Authorities?
- Identification of the owner of the property,
- Identification of the assignor(s) (host(s), if they are not the owner of the property,
- Identification of guests (assignees),
- Property identification: complete address, including the cadastral reference, if assigned,
- Number of rental days,
- Amount received by the host,
- Start date of the reservation.
The holiday rental platform makes quarterly information reports to the Tax Authorities. Does the host himself also have to make quarterly tax returns?
If the hosts are non-resident in Spain, they must declare their income in the quarterly non-resident income tax return (IRNR). In this case, if the result of the income declaration is that you need to pay, you must submit quarterly tax returns for all the operations referring to the same property. This means, your fiscal representative must report each rental agreement you had in the quarter to the tax office, even if the gains on a particular tenancy agreement were only 1 Euro. Deadline for the quarterly tax returns is the period between 1 and 20 (both included) of the month following each quarter (April, July, October and January).
If the tax return of previous quarters had not been submitted, the host can submitt them after the deadline, before the tax office asks him to. In this case there will be no imposition of a penalty, but the tax office will apply surcharges.
When the result is zero or negative, the host shall declare it annually from January 1 to 20 of the following year.
If the tourist rental is part of a business activity, the specific regulations related to that business activity will apply. (For residents and non-residents business activities must be declared quarterly regardless if there are gains or not).
For fiscal residents, the platform has still an obligation to report quarterly to the tax office. However, those residents who are not entrepreneur, must declare the income obtained in their annual income tax return (IRPF).
Can the Tax Authorities review the income tax returns for the last 4 years?
Yes, the Tax Authorities can review the income tax returns retrospectively. They can review them for a period of 4 years from the date upon which you should have declared them. The 4-year term counts from the last day of the voluntary period. Our recommendation is to declare all the taxes, before you receive a tax notification asking you for them.
What happens, if I deactivate or delete my account now on the holiday rental platforms?
If you deactivate or delete your Airbnb or HomeAway account now, this will not have any effect. The platforms must report since January 1st, 2018 to the Spanish tax authorities. They sent all information available regarding hosts who received any income through the platform.
Do I need to pay taxes, even if the new law does not affect my type of property?
Yes, in both cases for residents and non-residents.
What about if by law I need to declare the income on the rental in my country?
Even if you must pay taxes in your country, you must declare and pay taxes for gains obtained with your property in Spain. There are tax agreements with most of the countries to avoid double taxation.