How to declare income from a vacation rental?

How to declare income from a vacation rental?

There are more and more people who, if they have an apartment or a home, instead of using it as a traditional rental, they use it as a vacation rental. That is, they focus on vacations and allow them to rent the house for weeks, weekends, etc. But, How to declare income from a vacation rental?

If you are in this situation, and you have doubts about whether you are doing it right, or you have never done it and you don't want to get into trouble, take a look at this guide that we have prepared for you.

What is vacation rental

wooden house on grass

You can rent a home in three different ways:

  • Through regular and traditional rental, in which a person can live in it paying a certain amount of money during the months they use it.
  • Through vacation rental, since it can be used all year round to be a place where people, foreigners or nationals, stay for a short period of time that coincides with their vacations.
  • Through a combination of both, allocating some months to traditional rentals and others (mainly summer months) to vacation rentals. This is not the most common, because by law homes of one type or another must be registered. But, behind the scenes, these practices can occur.

Vacation rental, also known as tourist rental, has a different concept than usual. The Treasury itself was the one that defined this type of housing saying that "when the temporary transfer of use of the entirety of a home is furnished and equipped in conditions of immediate use, marketed or promoted in tourist supply channels and carried out for lucrative purposes. », then we are looking at what would be a vacation rental.

Legislation on vacation rentals

keys on hand

Now that it is clearer to you what we mean by vacation rental, it is time for you to know what legislation they must comply with. On the one hand, there is the Law on measures to flexibilize and promote the housing rental market.

On the other hand, Depending on the Autonomous Community where you reside, you must investigate what the regulations and requirements are. for vacation rental. This is because it is the CC.AA. that have the powers of this type of rentals and are no longer governed by the Urban Leases Law (as was the case until 2013).

How to declare income from a vacation rental?

Doing things well, especially with regard to the Treasury, is essential to avoid fines or more serious problems. Therefore, when reporting income from a vacation rental, there can be many doubts and questions that are often not well answered (if at all). Therefore, we are going to try to clarify everything for you.

To begin with, The Tax Agency usually distinguishes two types of vacation rentals:

  • Those with hosting services.
  • Those without any service.

Based on this, everyone has a way of declaring income (and defining themselves), so let's go one by one:

Vacation rental with accommodation services

This type of rental is characterized because you rent the house or home you have but, in addition, you provide services such as laundry, cleaning, cooking, reception... We could say that you become a kind of hotel, even if it is a one-room or house. . And that makes it become a business activity.

In these cases, The taxes that you must declare are the following:

  • Tax on economic activities (IAE). In this case you do not have to pay anything, but you must be registered in group 685 of the IAE, corresponding to non-hotel tourist accommodation).
  • Value added tax (VAT). You have the obligation to apply 10% VAT to all invoices you make to those who ask you for rent. And then, you will have to pay it to the Treasury.
  • Personal income tax (IRPF). It is done once a year, and in it you must collect all the income you have obtained from the home as income from economic activity.

Vacation rental without accommodation services


In the second case, and unlike the previous one, here you simply rent the home, but you do not provide any other extra service beyond making that place available to other people. This implies that the returns obtained (rental money) are not considered an economic activity. And what does it imply?

  • Tax on economic activities. We start from the fact that there is no obligation to be registered with the IAE. But, if you do, you would be in heading 861.1, housing rental.
  • Value Added Tax (VAT). As it is only a rental of housing, you do not have to declare VAT either.
  • Personal income tax (IRPF). It is something that you must do annually but, unlike the previous ones, here the income is a return on real estate capital.

Consequences of not declaring income from a vacation rental

We are going to put you in a situation that is not as fictitious as we might think. The fact that a person does not declare that income from his vacation rental. When that happens, and the Treasury discovers it, you face a problem. A big problem.

To begin with, they are going to give you a sanction, which can be minor, serious or very serious. And that implies that You will have to pay between 50 and 150% of what you have not declared.

Now, as we told you before, The powers are held by the Autonomous Communities, which means that there may be much greater consequences. depending on where you are and the legislation there is.

Of course, the Treasury does not usually act in bad faith. In fact, if you consider that what you have done was because you did not know the legislation, or because you did it wrong (that is, you acted in good faith) then it will give you time to regularize your situation and normally it will not fine you.

Of course, we do not recommend taking a gamble with the Treasury, because in the end the consequence can cause you to have problems in the future. Especially if you do the same thing again.

Is it clear to you how to declare income from a vacation rental?

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