The following blog post has been summarised to avoid unnecessary tax technicalities. The quoted tax rates are subject to change from one year to the next. The advice given is of a general nature and should not be construed as tailored tax advice. Seek professional legal advice on your matter – see disclaimer below.

Blog post copyrighted © 2018. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
21^st of June 2018

As a general rule, holiday homes do not invoice with VAT in Spain.

However, if you offer any of the following services listed below, your rental may be regarded by the Spanish Tax Office as assimilated to offering hotel accommodation:

• You rent out to a company, which in turn sublets your property or is the end-user. Either way, VAT must be submitted every tax quarter besides also filing NRIT. So, two sets of taxes need to be submitted every tax quarter in this case.
• Concierge service.
• Daily changing of bed linen.
• Daily changing of bath towels.
• Daily cleaning of property/room.
• Room service (food and beverage), catering.
• Bed & Breakfast.
• Other ancillary hotel services such as: daily press, laundry cleaning, luggage storage service, accommodation booking (holiday reservation), parking facility, valet service.
• Other.

In which case you would need to invoice your guests with VAT, which would greatly impact the profit margin of your letting business increasing its accounting costs. Our advice is to avoid offering any of the above ‘hotel’ services.

Why choose us?

Larraín Nesbitt Lawyers has over 15 years’ experience filing taxes for expatriates. 

We can reduce your landlord tax bill by a minimumof 40% - or money back guarantee!

We will save you more money on taxes than what you spend on hiring us.

Holiday Rental Accounting Service (HRAS) from only €100/tax quarter

We are specialized in taxation

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Tax services Larraín Nesbitt Lawyers can offer you

• Holiday Rental Accounting Service (HRAS)
• Non-Resident Income Tax (Fiscal Representation)
• IRPF (Spanish Resident Income Tax)
• Rentals (contract drafting)
• Rentals (advising on pre-existing lease agreements)
• Land Registry Search (Nota Simple)
• Tenant Eviction Service

Rental-related articles

• Renting in Spain: Top Ten Mistakes – 8th of June 2011
• Tenant Eviction in Spain – 8th of June 2014
• Holiday Rental Laws in Spain – 8th of March 2015
• Holiday Rental Laws in Andalusia (Decree 28/2016) – 8th of February 2016
• Renting in Spain - Landlord´s Taxation – 8th of January 2017
• Holiday Rental Home Taxation in Spain – 8th July 2017
• Holiday Rentals in Andalusia Made Easy – 3^rd July 2017
• New Balearics Holiday Rental Law – 8^th of September 2017
• Holiday Rental Accounting Service (HRAS) – 16^th January 2018
• Holiday Rental Taxation in Spain – 8th July 2018
• Holiday lettings: with or without VAT? – 21st June 2018

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.018 © Raymundo Larraín Nesbitt. All rights reserved.