In recent years, renting out homes through platforms such as Airbnb has become a popular way to earn extra income in Spain. However, whenever income is generated, the question arises: How much does the Spanish Tax Authority (Hacienda) take from Airbnb? This article provides a complete guide to taxes, tax obligations, and the legal aspects you must consider if you are a host in Spain.
What is Airbnb and how does it work?
Airbnb is a digital platform that allows people to rent out their properties temporarily to travelers. This model has revolutionized tourism by offering alternatives to traditional hotels while also providing income opportunities for property owners. However, as the use of these platforms has grown, so has the attention of tax authorities.
Income generated through this platform
When you rent your property through Airbnb, you generate income that must be declared to the tax authorities. Generally, this income falls into two categories:
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Direct rental income: This refers to the amount you receive for each booking made at your vacation property.
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Occasional income: If you decide to rent out your property only for short periods, this income must also be included in your tax return.
It is important to note that regardless of whether the income is high or low, the obligation to declare it always exists. If the tax implications are unclear to you, it is advisable to seek advice from experts in rental income and vacation property procedures.
How much do you have to declare for Airbnb?
As an Airbnb host, you are required to declare your income to Hacienda. The general rule states that you must include all income obtained during the corresponding tax year. However, it is essential to consider that there are deductions that may apply and reduce your taxable base. Some of the tax deductions you may consider include:
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Maintenance and repair expenses: Any expense related to maintaining the property is deductible.
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Property depreciation: You can depreciate the property over the years, which results in a tax deduction.
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Cleaning and utility expenses: Costs for services such as cleaning, electricity, water, and internet are also deductible.
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Mortgage interest: If the property is mortgaged, the interest paid may be deductible.
Deductions are key to optimizing the final amount you will pay. It is recommended to keep a detailed record of all expenses, as Hacienda may request this information in the event of an inspection.
Tax rate applicable to the income
Income generated from renting properties through platforms such as Airbnb is considered real estate capital income. This income is included in the IRPF (Personal Income Tax) tax base. According to Spanish legislation, the tax rate depends on the amount of income you earn:
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General base up to €12,450 per year: Taxed at 19%.
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Base between €12,450 and €20,200: The first €12,450 is taxed at 19%, and the remainder at 24%.
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Base between €20,200 and €35,200: Taxed at 30%.
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More than €35,200: Income exceeding this amount is taxed at 47%.
However, you must file an annual tax return, and you may also be required to make advance tax payments during the year.
How to declare the income
The most convenient way to declare Airbnb rental income is through Form 100, specifically in the section for real estate capital income. Below is a step-by-step guide to make the process easier:
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Gather all necessary documentation: Make sure you have all income and expense receipts from the start of the tax year.
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Access the Tax Authority forms: You can do this through the Spanish Tax Agency’s portal. It is recommended to use a digital certificate to access your tax data and file the return.
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Complete Form 100: Fill in the required information, including your net income after deductions.
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Submit your tax return: Once you have verified that all information is correct, submit your return within the deadline to avoid possible penalties.
It is crucial to keep copies of all documents and tax returns in order to manage future tax years properly.
Consequences of not declaring Airbnb income
Failing to declare income generated from Airbnb rentals can have serious consequences. The Spanish Tax Agency has increased its efforts to detect tax fraud, using technological tools to monitor these activities. Some of the repercussions you may face include:
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Financial penalties: If Hacienda detects undeclared income, you may face fines ranging from 50% to 150% of the undeclared amount.
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Surcharges and late-payment interest: If you do not pay on time, surcharges may be applied to the outstanding debt.
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Tax inspections: You may be subject to a more thorough review, which could require a significant investment of time and legal costs to defend your position.
Legal aspects and Airbnb regulations in Spain
In addition to tax obligations, Airbnb hosts in Spain must comply with a series of local and regional regulations governing tourism and rentals. Depending on the autonomous community where you are located, you may need to register as a tourist property owner with the relevant authorities. This may include:
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Registration number: You will obtain an activity registration number that must be included in your Airbnb listings.
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Specific licenses: Some localities may require specific permits to rent out your property.
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Safety and health regulations: Properties must meet minimum safety and health requirements, such as smoke detectors and fire extinguishers.
What to do if you are new to Airbnb?
Don’t panic! The first step is to inform yourself about the regulations that apply in your locality, as fines for non-compliance can be high. If you are considering renting your property on Airbnb for the first time, it is important to prepare properly. You may consult experts in the vacation rental field for guidance. In addition, it is essential to keep a detailed record of all the property’s economic activities.