Holiday lettings: with or without VAT?

Raymundo LarraĆ­n Nesbitt, June, 21. 2018

The following blog post has been summarised to avoid unnecessary tax technicalities. The quoted tax rates are subject to change from one year to the next. The advice given is of a general nature and should not be construed as tailored tax advice. Seek professional legal advice on your matter – see disclaimer below.

Blog post copyrighted © 2018. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
21st of June 2018

 

As a general rule, holiday homes do not invoice with VAT in Spain.

However, if you offer any of the following services listed below, your rental may be regarded by the Spanish Tax Office as assimilated to offering hotel accommodation:

  • 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).
  • Other.

 

In which case you would need to invoice your guests with VAT, which would greatly impact the profit margin of your letting business increasing its accounting costs. Our advice is to avoid offering any of the above ‘hotel’ services.

 

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Larraín Nesbitt Lawyers has over 15 years’ experience filing taxes for expatriates. 

We can reduce your landlord tax bill by a minimumof 40% - or money back guarantee!

We will save you more money on taxes than what you spend on hiring us.

 

Holiday Rental Accounting Service (HRAS) from only €100/tax quarter

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

 

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