Holiday Rentals

[spitfire58]

Just read this today. Presume it will apply here as well. Could cause problems for a lot of people !!

Holiday rental platforms to report to Spanish Treasury from October
March 22, 2018
Ministerial order takes effect next July.
Includes model 179 form, ‘Quarterly statement of holiday rental information`
Holiday rental platforms such as Airbnb, HomeAway, Wimdu and Niumba will have until 31 October to begin reporting their details to the Spanish tax office in accordance with the ministerial order governing new holiday rental statements, Europa Press has learned. The new tax requirement, approved by the Spanish Hacienda (Treasury) in December 2017, will take effect this July. Holiday rental platforms will have October to provide information about their rentals between July and September to the tax office. The statements are quarterly and must be lodged during the month following the end of each quarter.

The reporting period for the fourth quarter of 2018 will end on 31 January 2019. Meanwhile, the tax office has extended the deadline for reporting on rentals undertaken in the first two quarters of this year to 31 December to allow platforms to adapt their IT systems to the new requirements. The regulation covers approval of the model 179 form, ‘Quarterly statement of holiday rental information`, how, where and when to lodge the form and all other relevant details for compliance with the new reporting requirements.


INFORMATION REQUIRED

The names and details of the owner of the property, the holder of the right to lease the property (if different from the owner) and the people or entities renting the property will be required. The Hacienda is implementing the measures in an attempt to put a stop to certain holiday rentals, including those where hotel chains pose as private citizens to rent their properties through holiday rental websites.

Anyone renting out a holiday property will have to include details about the rental property, its land registry number and, where applicable, the number of days the property is used as a holiday rental in their statements. The amounts received by the person(s) renting out the property and the number of the agreement under which the property rentals are conducted must also be included. The statements must be lodged by individuals and entities that broker the holiday rental agreements between lessors and lessees, whether for a fee or free of charge.

Such individuals and entities are defined as those who create collaborative platforms to broker holiday rentals and are deemed to be service providers in the information society. This applies regardless of whether they provide the underlying service subject to the brokerage or of any conditions affecting providers or users of the rental service, such as price, insurance, duration or other contractual conditions.

[fourthwisemonkey]

No major problem if you have the appropriate licence and are declaring the earnings. Vivienda Vacacional is a fairly simple process for those that it applies to (ie residential zoning area). I understand there are other ways to legally get permits of one description or another even in Touristic zones but a lot more complicated than VV methinks. As for having to declare tax...unfortunately thats a way of life although guess it may push up the prices for holiday lets a bit. Knock on effect could also be that if owners start declaring then they will want to offset cleaning and mtce costs so will require facturas from their property managers .Therefore they will also have to legalise.....now that will affect a lot of people 

[spitfire58]

It wouldn`t be a problem if one had the appropriate licences & paid the appropriate tax on the income. However I somehow suspect that the number of those are probably in the minority !! People have seen this as a way to make a buck on the side for years & think they are clever/cute enough to get away with it 😜😜

[meggie]

Income is income no matter how its earned and as such is taxable, cannot see the problem.

[Tamkid]

I'm not making judgement one way or the other, but I knew people (Ex pats in particular) that were making a little bit more than a buck without declaring a penny tax. The Spanish come up with all sorts of schemes to threaten non tax payers but I haven't heard of anyone ever being taken to court, its difficult to prove when its a cash only transaction.

[Stone Free]

its difficult to prove when its a cash only transaction.

This is how it works. 

If a property is listed on HomeAway/Owners Direct (They are both now owned by Expedia), all payments between guests and owners now have to be made through HomeAway`s online credit card system. This is done when the guests book.  HomeAway pay the owner one day after the guests arrive.  Therefore HomeAway have a comprehensive record of income to pass on to the Hacienda.  Since Expedia acquired them, the days of cash payments for listings on HomeAway/Owners Direct are a thing of the past.  I believe it`s the same for Airbnb.

[Ivemovedon]

My experience of dealing with property management companies and most service providers on the island on almost all occasions appeared above board. That includes building services, gardening and pool cleaning among others. Factura's always provided with official NIE number on display. You have to have them as tax deductable expenses when declaring in the UK . And by law you have to declare to both the Spanish and UK tax Authorities.

As for holiday rentals themselves it's a bit of a scatter gun allegation that most are on the fiddle. If they were not paying tax before, after the rental and inspector visit scares of 4 or 5 years ago i would hazard a guess most are now. A high percentage rent through Owners direct and Homeaway etc and its now almost impossible not to get picked up on the radar anyway.You would be taking a big chance trying it on now.

[Tamkid]

Your probably right, its all a thing of the past, ex pats not paying tax to the Spanish Authorities, you sound like you both know what you are talking about. Things seemed to have changed dramatically since I lived on the Island. I imagine everyone give out receipts for renting bikes, quads and serving meals etc, that everyone lists their property on the internet and not in paper shop and local newspapers like in the old days, or even lists on the internet and still rents privately, blocking a few months off stating its for private use, all that seems to have been sorted now. Its happy times for the law abiding citizens, long may it last.

[Ivemovedon]

Just don't like seeing the islands entrepreneurs, businesses and workforce given an unfair branding as being generally corrupt. It was probably true to say 15 years ago the Spanish tax system was getting a little less should we say than they should have been. I honestly believe it has changed..and in a very short space of time.

[spitfire58]

Your probably right, its all a thing of the past, ex pats not paying tax to the Spanish Authorities, you sound like you both know what you are talking about. Things seemed to have changed dramatically since I lived on the Island. I imagine everyone give out receipts for renting bikes, quads and serving meals etc, that everyone lists their property on the internet and not in paper shop and local newspapers like in the old days, or even lists on the internet and still rents privately, blocking a few months off stating its for private use, all that seems to have been sorted now. Its happy times for the law abiding citizens, long may it last.

Sarcasm noted & agreed with Tamkid 🤣😂🤣😂🤣😂

[Ivemovedon]

Can only go by your own experiences. That's mine.

[Charlie dont surf]

I love the smell of a property price crash in the morning.

[waybo379]

Not clear this squares up with GDPR. This comes into full effect on 25th May, and expressly forbids using or passing personal data for unauthorised use.

[Charlie dont surf]

Phew! Good ole GDPR saves the day.

[Charlie dont surf]

Not clear this squares up with GDPR. This comes into full effect on 25th May, and expressly forbids using or passing personal data for unauthorised use.

govement tax offices just authorise whatever they want.

dont. mess. with. the. tax man. (or woman)

Why not? Never done Kenn Dodd any harm.

[Ivemovedon]

Don't tell Lester Piggot that....

[Charlie dont surf]

Lester was so mean he probably represented himself!

Kenn on the other hand. Bless him. I heard the diddymen done well at the reading of the Will.

[Lexeus]

Not clear this squares up with GDPR. This comes into full effect on 25th May, and expressly forbids using or passing personal data for unauthorised use.

There is an exemption in GDPR for such activities when it is the government calling the shots