What could happen if you don’t declare your holiday rental incomes?

holiday rental incomes

If you are thinking of not declaring your holiday rental incomes, you should read this article first!

As the profit for renting a property in the Costa del Sol has increase, Hacienda has also decided to impose stricter controls on holiday rentals.

As a matter of fact, every landlord renting out a property in Spain must register it officially to obtain a license. In order to classify as a holiday rental accommodation and to be eligible to obtain the “occupation permit” (Security, ventilation, house equipment, air conditioning etc)

But, how can Hacienda Know if you are renting out a property for short stays?

Before the new technologies, it was more difficult to know if somebody was renting out the property and not declaring it. However since the appearance and generalization of property platforms, it has been easier for Hacienda to gain control over the market.

Many landlords don’t know that all internet platforms as Homeaway or Airbnb, have to report their income to the tax authority. They must include in that report the person who generate that rental income, meaning that if you rented your property through that portal, you will be in their records to Hacienda.

According to Rosana Tejada, from tax consultant at Tejada solicitors, “Even if you are a non-resident and you don’t report this income, Hacienda will eventually know about it”

In order to avoid future problems as undesirable fines, non residents renting out their property in Spain must declare their benefits though the form 210 each quarter (April, July and October).

For residents in Spain, the approach is differently, as this rental income should be included in their yearly tax return (IRPF)

Original article from Tejadasolicitors.com

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

holiday rental incomes