
2020 was a difficult year for the tourism sector in Spain, including the area of holiday rentals. After months of travel restrictions and uncertainty for those who rent out their property as a holiday home in Spain, 2021 brings little good news, as the Spanish tax authorites have clarified that those who own a holiday rental property in Spain must pay tax even for the days when the property isn't being rented.
Normally in Spain if you own a property and rent it out as a holiday home, you have to pay income tax on the rental income, and if you don't rent out the property, then you are taxed on the imputed income. However, during the COVID-19 pandemic, many homeowners in Spain who traditionally rent out their property as a holiday home have been hit with more taxes than expected, and were unaware that they are taxed even when the property isn't rented out.
According to some recent clarification from "Agencia Tributaria", the Spanish tax agency, if you own a property that you use as a holiday rental but aren't welcoming any guests due to the coronavirus crisis, you will still be required to pay the imputed income tax for the days in which the property is empty. On top of this, it has been clarified that owners also won't be able to deduct any expenses.