This is really a moot point. As a general rule, holiday homes do not invoice with VAT in Spain.
However, if you offer any of the below-listed services, your holiday rental may be regarded by the Spanish Tax Office as assimilated to offering a hotel accommodation, in which case you need to add VAT on top:
- You rent out to a company, which in turn sublets your property, or is the end-user.
- 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), car parking.
- Other.
If you invoice your guests with VAT, this would impact the profit margin of your letting business by (greatly) increasing its accounting costs (as you now need to effectively submit two sets of tax returns quarterly instead of only one). Our advice is not to offer any of the above-listed ‘hotel’ services so as to avoid having to apply VAT on top.
Squatter in Palma fined for rooftop pool that put building at risk
A court in Palma has convicted a woman of two offences: illegally occupying a property and installing a 6,000-litre pool on the flat’s terrace, which caused structural damage to the building and put other residents at risk. As a result, the judge ordered the squatter to pay €8,000 in compensation, although the owner estimates the damage to be “in the tens of thousands of euros.”
8 reasons to apply for a Digital Nomad Visa in Spain
If you are planning to move to Spain, you should seriously consider becoming a digital nomad.
Changing from NIE to DNI in Spain: everything you need to know
If you’re a foreign national in Spain with a Foreigner Identification Number (NIE by its Spanish acronym) and have recently acquired Spanish citizenship, you may be wondering how to change your NIE to a National Identity Document (or DNI) to update and regularise your administrative status. In this article, we explain all the steps you need to follow.
Beckham Law in Spain: a complete guide for expats and remote workers
If you’re considering moving to Spain for work, you may have come across the term “Beckham Law”. Officially known as the Special Expatriate Tax Regime, this tax scheme allows foreign workers to benefit from a significantly reduced tax rate on their income in Spain. It’s a popular option among professionals, entrepreneurs and high-net-worth individuals relocating to the country.
Spanish court rules against the fiscal tax discrimination of non-resident taxpayers
Lately, there has been a lot of talk and hype in the media regarding a Spanish ruling that opens the way to end tax discrimination against non-residents on filing the annual Non-Resident Imputed Income Tax (NRIIT).
Garage squatting in Spain: legal risks and how to reclaim your space
Illegal squatting is no longer limited to homes: private garages have become a new target. An increasing number of owners in major cities are reporting intrusions into their parking spaces, leading to both legal and financial disputes. Although the law provides for penalties and eviction procedures, these processes are often protracted, leaving those affected to resort to temporary solutions.
