They say the only certainties are death and taxes and indeed, both seem equally unavoidable, the latter where income is involved. The best way to ensure you fully benefit from renting out your Marbella property is to be well-informed and aware of the taxes that apply to holiday rentals within the autonomous region of Andalucía.

The tax obligations related to holiday rentals of privately owned properties in Andalucía include the following:

Income Tax

To be able to officially let out your Marbella property as a holiday rental, you should register it with the Registry of Tourism of Andalucía (RTA), who through the regional government will issue a rental occupancy licence.

Any income derived from renting out the home will have to be declared in your annual tax return, where it will be subject to Spanish income tax rates. The latter are scaled in a range of 19%-45%, based upon the amount you’ve earned.

IVA (Value Added Tax)

In Spain, what is known as VAT in for instance the UK is called IVA (Impuesto sobre el Valor Añadido), and it has to be added on top of the amount you charge for renting out your property. While the standard IVA on most goods and services is 21%, the rate for tourist activities currently stands at 10%. As is the concept of IVA, you can of course deduct any IVA from expenses related to the property in question, so only pay this tax on the balance.

Tourist Tax

The Impuesto sobre estancias en establecimientos turísticos is another tax that owners of holiday rental properties have to collect and pass on. It is typically between €0,50 and €2 per night, depending on the local regulations.

Non-resident Income Tax (RNR)

If you are not a resident of Spain you will be subject to an annual tax declaration of income, in which case a flat rate of 24% on rental income from your Marbella holiday rental property will apply. It may be worthwhile to consider all aspects and assess if resident status might be beneficial.

Property Tax

In addition, homeowners are also liable for a municipal property tax, IBI (Impuesto sobre Bienes Inmuebles) on the assessed value of the property. This tax is payable annually along with garbage collection costs, regardless of whether you rent the home out or not.

Each autonomous region – in this case Andalucía – sets its own regulations within the national framework, with municipalities doing the same for those that fall within their remit. In addition to being aware of all the taxes and their rates and conditions, it is also important to note that they can be subject to change from time to time, so make sure you work with people who stay up to date.

Esenzia Homes provides a professional, efficient service based on many years of experience – talk to us about availing your home to our broad range of services for your guests and yourself.