Malaga and Costa del Sol property owners have for a while rented out their properties on Airbnb. Now the Spanish tax authorities have called for registering each rental and paying a tax on it. Now if you want to rent out a property for short-term lets, it must be registered and have a certificate that says it meets certain health and safety requirements.
What happens if you decide to rent out your property without declaring the income?
“What many landlords don’t know is that the actual internet platforms like Airbnb, Spotahome and Homeaway have to report their rental income (including the person who generated it) to the tax authority through a agreement called Form 179.” Therefore even if landlords are non-residents and they don’t declare this income, Hacienda, the Spanish Tax Agency, will eventually find out about it. To avoid paying fines, non-residents must declare earnings by submitting A Form 210 (IRNR, Impuesto sobre la Renta de no Residentes sin establecimiento permanente).
This form needs to be submitted quarterly during the first 20 days of April, July, October and January.
Spanish residents, meanwhile need to declare their rental property income with their yearly tax return.
If you rent out your property to tourists you must submit Form 210 before October 2nd to avoid paying fines.