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.

Holiday rental license prices revealed

The Board of Tourist Accommodation Exchange (CBAT) will approve the pricing to buy holiday bed licenses in the Balearics on the 26th June.

To set minimums, the CBAT has determined prices for each sector which include 875 Euros per place of occupancy for apartments, 3,500 Euros for villas and townhouses and 291,67 Euros for those who choose to rent their home for up to 60 days. There will be the possibility to split this payment into five yearly instalments.

All licenses require the habitability certificate to determine the maximum occupancy which cannot be surpassed.

Owners will have the option to renew the licenses every five years and additionally if they wish they can sell them back since they acquire them in usufruct.

Both hoteliers and homeowners will have to start paying the new prices once they are in force. Holiday homeowners will be able to buy these places from the moment in which the tourist zoning in Mallorca is approved.

The total number of places that the CBAT currently controls is 42,000 and the funds collected will be invested to improve tourist infrastructure. An investment of 9 million Euros is expected for this year.