Holiday lettings: with or without VAT?

Raymundo LarraĆ­n Nesbitt, June, 21. 2018

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
21st 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.


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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.

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