Rental income taxArticle 4 of 4 · 7 min read
Tax on short-term holiday rentals in Spain
Explains how Spain taxes short-term holiday lets: no long-term reduction, when VAT applies, what platforms report, the national registration number and when letting becomes a business activity. For owners letting a Spanish property to tourists.
Terms used
- IVA — IVA is Spain's value-added tax (VAT), charged on most goods and services.
- Capital inmobiliario — Capital inmobiliario is income from property you own, such as rent, taxed in your income tax return.
- Autónomo — An autónomo is a self-employed person registered with Social Security.
- IAE — IAE is a local business tax on economic activities; most private individuals are exempt.
- Agencia Tributaria — The Agencia Tributaria is Spain's national tax agency.
- Registro Único de Arrendamientos — The Registro Único de Arrendamientos is the national register that issues a registration number for short-term and seasonal lets.
Key rules
- Long-term reduction: The 50% reduction on net rent for long-term main-home lets does not apply to holiday lets.
- Registration number: Every short-term let needs a registration number before you advertise, and platforms may remove listings without one.
- VAT: Accommodation only is generally exempt from IVA; hotel-type services bring 10% IVA and quarterly returns.
- Platform data: Platforms report your lets to the tax agency, so your declared income should match.
The short answer
A holiday let is taxed without the long-term reduction. The 50% reduction on net rent only applies to a long-term let as the tenant's main home, and it does not apply to holiday lets. The comparison below shows how a long-term let, a holiday let and an empty home differ.
Four things matter for a holiday let: how the income is taxed, whether you charge VAT, what platforms report about you, and the national registration number.
How your income is taxed
If you are a Spanish tax resident and you only provide accommodation, your rent is taxed as rental income from property (capital inmobiliario) in your income tax return. You can deduct costs in proportion to the days you let. These include mortgage interest, repairs, local taxes, community fees, insurance, utilities and depreciation.
Non-residents are taxed under a separate non-resident income tax, not the resident return.
When it becomes a business activity
Your let counts as an economic activity for income tax in two cases:
- You have at least one full-time employee and a separate premises to run the let.
- You offer hotel-type services such as cleaning, breakfast or reception.
A different test applies for VAT and the tax census, so a let can be an activity for those even if it is not for income tax. If you are in a borderline case, confirm with a tax adviser.
If you offer hotel-type services, register as autónomo (self-employed with Social Security) and for IAE before you start, using modelo 036 or 037. Most private individuals are exempt from paying IAE, but the registration is still needed.
VAT
If you only provide accommodation, with no hotel-type services, the let is generally exempt from IVA. If you provide services such as cleaning, linen or reception, as a hotel would, IVA applies at 10%. You must then register and file quarterly returns.
What platforms report about you
Booking platforms report your lets to the Agencia Tributaria. You do not file these reports yourself. They cover you as owner, the property (address, cadastral reference and registration number), the tenants, and the dates and number of days of each stay. Platforms also send annual data on what you earned and the fees charged, and Spain shares this with other EU countries.
Your tax return must match this data. Mismatches are the easiest way to draw a tax inspection.
The national registration number
Since 1 July 2025 every short-term and seasonal let needs a registration number from the Registro Único de Arrendamientos. Get it before you advertise. Platforms must show the number and may remove listings without a valid one.
The register is not a tax. It lets the tax agency compare platform data with the income you declare. Unregistered or undeclared lets risk penalties, and fines of up to 100,000 euros were announced. Your region may also require its own tourist licence, so ask your regional tourism office.
The checklist and the warnings below cover the steps and the common mistakes.
Long-term let, holiday let and empty home: how Spanish tax differs
The long-term let gets a 50% reduction and no VAT. The holiday let gets no reduction and may carry VAT. The empty home is taxed on income you never receive.
| Long-term let (tenant's main home) | Holiday let | Empty second home | |
|---|---|---|---|
| Reduction on net rent | 50% | None | Not applicable |
| Deductions | Interest, repairs, taxes, community fees, insurance, utilities and depreciation | The same kinds of expense, only in proportion to the days let | None, as there is no rent |
| VAT | Exempt | Exempt if you only provide accommodation. 10% if you add hotel-style services such as cleaning, linen or reception | None |
| Imputed income | None | None | 2% of the cadastral value, or 1.1% if the cadastral value was revised in the year or the ten previous years and came into force from 1994 onward |
| Reporting | You declare the rent in your annual income tax return | You declare the income in your annual return, and the platform also reports your rentals to the tax agency | You declare the imputed income in your annual return |
Reduction
The 50% reduction applies only to a long-term let as the tenant's main home. Holiday lets never get it. Higher reductions can apply in some areas declared high-demand, so check your property's zone with the tax agency.
Deductions
For a holiday let, count only the share of each cost that matches the days the property was let. Holiday income is normally taxed as rental income. It becomes a business activity if you employ at least one full-time person and use separate premises to run it, or if you provide hotel-type services.
VAT
If you charge VAT on a holiday let, you must register and file quarterly returns. Decide before your first guest whether your service level triggers it.
Imputed income
The imputed income on an empty second home is added to your other taxable income. The rate that applies depends on whether your municipality has revised its cadastral values. Your property tax bill shows the cadastral value.
Reporting
Holiday-let platforms send the tax agency your identity, the property's address and cadastral reference, the stay dates and the amounts you received. You do not file those platform returns yourself, but the figures can be compared with your own return, so declare every stay. Spain also shares this data with other EU states.
Checklist
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Get your registration number from the Registro Único de Arrendamientos before you advertise the let.
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Check that your listing shows the registration number, because platforms may remove listings that lack one or have an invalid one.
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Check with your region whether you also need its own tourist licence.
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Check whether you offer cleaning, linen, breakfast or reception, because these services make the let a tourist-lodging activity with VAT at 10%.
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Make sure the property address, cadastral reference and rental days you give the platform are correct, because the platform reports them to the Agencia Tributaria.
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Declare all your holiday rental income in your tax return, matching what the platform reports.
What to watch out for
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Letting without a registration number: Since 1 July 2025 every short-term let needs a registration number. Without one, your listing can be removed and you risk penalties. Fines of up to 100,000 euros were announced for breaches. Get the number before you advertise, and show it on every listing.
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Income that does not match platform data: The register lets the tax agency cross-check platform data against your declared income. Undeclared lets risk penalties. Declare all rental income, and compare your return with the platform's yearly statement.
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Expecting the long-term reduction: The 60% reduction for long-term residential lets does not apply to tourist lets, so your net rent is taxed in full. Plan your tax on the full net rent, and deduct only the costs that relate to the days you let.
Frequently asked questions
Do I charge VAT on a holiday let in Spain?
Only if you provide hotel-type services, in which case VAT (IVA) is charged at 10%. Services include cleaning, linen or reception. If you only provide the accommodation, the let is exempt from VAT. Where VAT applies, you must register and file quarterly returns.
Does the platform report my holiday rental income to the tax agency?
Yes, platforms such as Airbnb or Booking report your identity, property and rental days to the Agencia Tributaria. They file the reports, so you do not file these forms yourself.
Does a registration number change how my holiday let is taxed?
No, the registration number is not a tax and does not change how your income is taxed.
When does a holiday let count as an economic activity?
For income tax, it counts as an activity only if you have at least one full-time employee and a separate premises for the work. VAT and the tax census use a different test. If you offer hotel-type services, you must register as autónomo and for IAE, a local business tax that most private individuals are exempt from.
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