Holiday rental platforms to report to Spanish Treasury

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Marks
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Holiday rental platforms to report to Spanish Treasury

Post by Marks »

Some guests just need a sympathetic pat. On the head. With a hammer.
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cleanforum
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Post by cleanforum »

Thanks Marks.
I posted a similar link to the Rental Listing Sites forum recently. I get the impression that folks are hiding their heads in the sand over this a bit (or everyone is 100%legal here in Spain). I also notice that from July all the ligitimate rental go-between companies including online listing comapanies ABB etc will have to display the owners Tourist licence number in their adverts. Have to see how seriously this is followed up. This could have a huge potential impact on the holiday rental market here. How many rentals on ABB, say, have been through the process of ligitimately registering their properties with the relevent autonomous authourity?
Marks
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Post by Marks »

cleanforum wrote:How many rentals on ABB, say, have been through the process of ligitimately registering their properties with the relevent autonomous authourity?
On TA for my area there are 210 properties listed. An agent has 50 listed all with licence numbers of the rest 90% did not have a licence number showing.
Some guests just need a sympathetic pat. On the head. With a hammer.
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Mouse
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Post by Mouse »

Yes I too am very surprised about the lack of discussion about this law. Here we have a very bad situation as the local councils are all saying they will not issue any new licences (and here they were only issued for detached villas...everything else was illegal).

There are many owners flying below the radar. Though the authorities here haven't helped the situation with lots of confused info on applying for a licence.
However now, with this info, should it be submitted and they have the time to check, they can easily see those owners who are advertising and who are not legally registered.

I posted the link on the local ibiza facebook page and was very surprised that I had only 1 comment and 1 share. Most people I think are ignoring it. Or not taking it sriously.
The days of being able to operate without paying tax/collecting the Eco money is coming to an end. It will be intesting to see how things develop.

Mousie
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roxytoo
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Post by roxytoo »

I think most people are burying their head in the sand and hoping it will go away, thats why they don't comment. It will probably, along with everything else, be the death of my business. I would only be able to advertise properties with a licience number and most of my owners don't want to get one. I think the whole industry soon will be beyond recognition. There will be a shortage of rental properties available and prices will increase even more which may be a good thing for our own as I will probably carry on with renting ours (we have a licience etc) but I won't be able to rent others
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Mouse
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Post by Mouse »

I think you're right Roxy about the changing face of rentals. And given all the previous scares, which came to nothing, I can see why owners are thinking it will just go away.

However I noticed that more of the OTAs now have a section for the rental licence number. So it will be easy to check those without. That, more than the tax, should be their biggest concern.

Here they made things worse because when licencing first raised its head they were only giving them out to Ibicencos. So no one wanted to raise their head above the parapet. In the second wave they started to issue to non locals but the info was very scatty about what was acceptable. We only applied because our Ibicencan neighbours got approval and offered to hold our hand during the process, so they couldn't deny us.
We heard stories of villas being knocked back because they were too rural, and then too urban.

Here houses are very expensive...and of course many owners will be renting out in order to pay towards the huge mortgage. So if they seriously clamp down it will have a huge impact on the housing market....except for those with licences.

Mousie
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gardenboy
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Post by gardenboy »

Round here on the mainland most rental villas i know of have now stopped renting to the wider public. Just gone friends and family, tbh mines going that way...a rental licence and autonomo status would kill the economics.
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Vera
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Post by Vera »

Has anyone heard any more on this.
Will the listing sites let us know what information they have supplied to the tax authorities?
It would probably be a good idea if we reported the same figures on our returns!
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Post by Torrox »

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linda147
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Airbnb sharing information with Spanish tax authorities

Post by linda147 »

I got an email from Airbnb today saying that were going to share information with the tax authorities. I rent out houses on the same development as my house on behalf of other people. I only take a 10% commission and pay all the costs for my website advertising etc. so don't make a fortune and I declare my income from the business in the UK and don't want to get involved with the Spanish tax authorities!
I understand that a lot of people don't declare their rental income but I know all the owners I deal with do. I have taken all the houses off Airbnb except one that has the tax details of the owner and not me. They are all registered under the Rural rental properties law in Andalucia - am I correct in thinking that I can say "no" to the question "does the Spanish tax decree apply to your listing?"
Does anybody know? Thanks in advance :) Running this small business seems to just be getting harder and harder :(
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CSE
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Re: Airbnb sharing information with Spanish tax authorities

Post by CSE »

linda147 wrote:I got an email from Airbnb today saying that were going to share information with the tax authorities. I rent out houses on the same development as my house on behalf of other people. I only take a 10% commission and pay all the costs for my website advertising etc. so don't make a fortune and I declare my income from the business in the UK and don't want to get involved with the Spanish tax authorities!
I understand that a lot of people don't declare their rental income but I know all the owners I deal with do. I have taken all the houses off Airbnb except one that has the tax details of the owner and not me. They are all registered under the Rural rental properties law in Andalucia - am I correct in thinking that I can say "no" to the question "does the Spanish tax decree apply to your listing?"
Does anybody know? Thanks in advance :) Running this small business seems to just be getting harder and harder :(
Your post has given us limited information to give a full(ish) answer.
Advise would be for you to get your tax issues sorted very quickly.
You are then considered a tax resident.if you meet any of the following criteria.

If you spend more than 183 days in Spain in one calendar year. This is whether or not you take out a formal residence permit.
Spanish residents and ex-pats living in Spain have to declare all relevant overseas assets worth more than €50,000. This includes bank accounts, property and life assurance policies.
Your “centre of economic interests” is in Spain, i.e. the base for your economic or professional activities is in Spain.
Spanish non-tax residents are only taxable for their Spanish source income.
As a general rule you can only be treated as tax resident in one country or another.
I think your deactivation is going to be too late. Data sharing was started in Jan 2018. Thus that may make you liable, or at least your clients liable for paying taxes.
You last comment could be simplified if you make payments in the country where you resided. The way you have written the post it looks as if you reside in Spain.
You certainly need tax advice.
https://europa.eu/youreurope/citizens/w ... dex_en.htm
Never try to out-stubborn your guests.
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roxytoo
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Post by roxytoo »

I'm the same as Linda. I have always paid my rental income as an agent in the Uk as that is where I reside , I am self employed. My rental income from my own properties is paid in Spain. This is how my accountant told me to do it. I have 6 properties on airbnb and have taken them off too now. I only had one booking in 3 years anyway so no big deal!
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CSE
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Post by CSE »

!0 years ago the tax issues changed for non residence.
If non-resident of Spain rents out their property and receive an income in exchange, they are obliged by law to declare this income and pay taxes on it?
https://www.spainmadesimple.com/propert ... residents/
So the advise is the same get the tax issues corrected ASAP.

Previously related posts on this forum
viewtopic.php?t=27643
viewtopic.php?t=28251
viewtopic.php?t=27612
viewtopic.php?t=26043
just a few examples. :)
Never try to out-stubborn your guests.
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roxytoo
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Post by roxytoo »

But we do pay taxes on OUR propertys in Spain. We are talking about commission taken for renting OTHER peoples propertys in Spain whilst resident in the UK
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CSE
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Post by CSE »

You have to declare that money. It may be considered income gained in Spain. IANAL but it will come down to where you are paid I suppose. I doubt it would be where the actual work is carried out.
In that last link it states
If someone owns property in Spain, but is not resident in Spain for tax purposes and has at least one office or premises used for managing the letting business and employs one or more people on a full time contract, then the owner is considered to have income through a permanent establishment in Spain and is subject to different regulations.
It could be that your clients are leaving them selves open to tax issues.

According to Spanish laws if you are charging to undertake a service you maybe liable to charge IVA (VAT) too.
Please take good legal/tax advice.
Another link you may find to be useful
https://www.agenciatributaria.es/AEAT.i ... icio.shtml
As a side note:
Have you read the tax case against Shakira? Not saying you earn as much, but the Spanish have a load of issues about where she lived and earned her money. It is an illustration of just how complicated tax issue can be.
Never try to out-stubborn your guests.
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