New tax form introduced to control holiday rental income

Hacienda, the Spanish tax authority, has recently published new legislation that will oblige all intermediaries in the rental of tourist accommodation, such us companies like Prestige Villas or holiday portals, to produce periodic statements identifying the owners of the properties being advertised and the amounts for which the rentals are offered to bring into the open all the undeclared tourist rentals by submitting the new Form 179.

Owners who rent their houses in Spain are required to declare rental income through Form 100 or Form 210 depending if the owner is a tax resident in Spain or not.

Form 179 will enter into force in July 2018, and those required to file this return will be required to provide information for the entire 2018 period, including the first two quarters of the year.

This new form must be filed on a quarterly basis during the month following the end of each quarter, as is the case with the quarterly IVA (VAT) declaration. I.e.: the first quarter will be presented in April and the second quarter in July.

In summary, every owner who has rented their property in Spain and do not declare the income, according to the new law from 2018, Hacienda, with the information received through Form 179, will know all the necessary details to claim the taxes for rental incomes to prepare and file the corresponding fine.

The information provided in this article is not intended to be legal advice but merely conveys general information related to tax and legal issues. If you are a property owner concerned about any of the information in this blog post, it is advisable that you speak with your Spanish tax advisor or accountant.

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