Tax
Holiday-let taxes in Spain: what owners need to know
Letting a property to tourists generates income that must be declared, and the rules change depending on where you live, which services you provide and, since October 2026, how long stays last. Here is the general picture so you arrive well prepared at the meeting with your tax adviser.
- 19%Non-resident tax for EU, Iceland and Norway residents
- 24%Non-resident tax for all other non-residents
- 10%VAT if hotel-type services are provided
Source: Spanish Tax Agency
Income tax (IRPF) if you live in Spain
According to the Tax Agency, holiday-let income is, as a general rule, income from real estate. It becomes a business activity if you provide services typical of the hotel industry (permanent reception, regular cleaning during the stay, regular linen changes, laundry…) or employ at least one full-time member of staff. Cleaning at check-in and check-out, or changing linen between guests, are not hotel services.
Unlike a main-residence let, a holiday let gets no reduction of the net income. For the days the flat is neither let nor your main home you also declare imputed income, calculated on the cadastral value; Royal Decree-law 29/2026 provides for changes to those percentages from 2027.
Deductible expenses, in general
- IBI property tax, refuse charge, community fees and insurance.
- Utilities, cleaning, laundry, platform fees and management.
- Loan interest and repairs: together they cannot exceed the income from that property; any excess is carried forward to the next four years.
- Depreciation: up to 3% a year of the higher of acquisition cost and cadastral value, excluding land; furniture, up to 10%.
- If you let only part of the year, annual expenses are apportioned to the days let.
Non-resident tax (IRNR) if you live abroad
Non-residents pay Non-Resident Income Tax. Residents of the EU, Iceland and Norway pay 19% on net income and can deduct expenses. Everyone else, including UK residents, pays 24% on gross income, with no expenses. If you provide hotel services, the Tax Agency considers there to be a permanent establishment, with different rules.
It is declared on form 210. Order HAC/623/2026 has changed the deadlines: income accrued from October 2026 (or the whole of 2026, if grouped by year) is declared from 1 to 20 April of the following year. Days not let also generate imputed income, declared from 1 April to 31 December of the following year.
| Resident (IRPF) | Non-resident (IRNR) | |
|---|---|---|
| Rate | Progressive scale, together with your other income | 19% (EU, Iceland, Norway) or 24% (others) |
| Deductible expenses | Yes | Only for EU, Iceland and Norway residents |
| Return | Annual income tax return | Form 210 |
| Deadline | Income tax campaign, usually April to June | 1–20 April of the following year (income accrued from October 2026) |
| Days not let | Imputed income on the return | Imputed income on form 210 |
| Hotel services | Business activity | Permanent establishment |
General outline based on the Spanish Tax Agency. Double taxation treaties and your personal situation can change the outcome.
VAT: exemption and the planned change
Today, holiday lets are VAT-exempt if no services typical of the hotel industry are provided. If they are, the let is taxed at 10%, like a hotel.
Royal Decree-law 29/2026, in force since 8 October 2026, provides that from 1 December 2026 lettings of furnished properties for stays of no more than 30 nights will also be taxed at 10%, unless it is the landlord's main home. It is pending ratification by the Standing Committee of the Spanish Parliament: an earlier decree with the same change was repealed on 2 October. Check its status in the BOE.
If the change goes ahead, owners will have to charge and declare VAT. Speak to your adviser before December, including about bookings already paid.
IBI property tax
IBI is a municipal tax paid by the owner every year on the cadastral value, and it is deductible. Royal Decree-law 29/2026 allows councils in stressed residential markets (zonas tensionadas) to apply a surcharge to holiday lets. Check whether your municipality is in that situation.
What platforms tell the Tax Agency
Platform operators file form 238 every January with what they intermediated the previous year. Form 179, the former return specific to holiday lets, has not been in force since the 2024 tax year, according to the Tax Agency. In practice, the Tax Agency knows your income: declare all of it.
General calendar of obligations
January
Platforms file form 238 for the previous year. You do not need to do anything, but the data reaches the Tax Agency.
1 to 20 April
Non-residents: form 210 for the previous year's rental income.
For income accrued from October 2026 or 2026 grouped by year.
April to June
Residents: income tax return, including rental income and expenses.
Exact dates are published each year on the Tax Agency website.
1 April to 31 December
Non-residents: imputed income for the previous year's days not let.
As set by your council
IBI, within the voluntary payment period set by each municipality.
How we can help
At Dossan Apartments we do not provide tax advice, but every month we send you a report with stays, prices paid by guests, costs and profit. It is the information your adviser needs to prepare your returns.
Frequently asked questions
How is holiday-let income taxed for Spanish residents?
As a general rule, as income from real estate. It is a business activity if you provide services typical of the hotel industry or employ at least one full-time member of staff.
How much does a non-resident owner pay?
19% on net income if resident in the EU, Iceland or Norway, and 24% on gross income if resident elsewhere, such as the UK. It is declared on form 210.
Is VAT charged on holiday lets?
Currently they are exempt unless hotel-type services are provided, which are taxed at 10%. Royal Decree-law 29/2026 provides for 10% on stays of up to 30 nights from 1 December 2026, pending ratification.
Can I apply the residential letting reduction?
No. According to the Tax Agency, holiday lets do not qualify for the reductions in article 23.2 of the Income Tax Act, which are for main-residence lettings.
Does the Tax Agency know what I earn through platforms?
Yes. Platform operators file form 238 every January with the previous year's information.
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