Declaring the rental of a holiday home is very important to avoid problems with the tax authorities. The taxation for this concept depends on the property’s use and the net proceeds obtained from the rental. We explain all this in detail in this post about how to declare your apartment as a holiday home.
What is a holiday home?
A holiday home is the rental of a furnished and equipped home for tourist purposes for a short period. It’s precisely the duration of the transfer of ownership that makes the difference with seasonal rentals, which can last from 32 days to 11 months, as opposed to holiday rentals, which do not exceed 30 days.
This difference is explained by the different uses made of the home, since in one case it concerns a tourist purpose, while in the other case, it concerns the provision of a second residence, either for work reasons, to travel abroad to study, etc. For this reason, to indicate the rental of a holiday home, it’s necessary to follow the specific tourist regulations of each municipality, and not the urban rental law that applies to seasonal rentals.
Finally, the difference between holiday rentals and seasonal rentals means that the former usually has associated services that are not offered with the latter: cleaning, customer service, etc.
How should I declare holiday rentals?
If you’re unsure of how to declare the rental of your holiday home, don’t worry, because we will explain it to you in a simplified way. The first thing to think about is the net income you received from the rental, which is the result of deducting the costs incurred from the income obtained.
As costs that you can deduct, you can include the community costs, the municipal garbage tax, the IBI from the town hall, any repairs, and even the costs of advertising the property. But, please note, that you can only deduct these costs in proportion to the time the property was rented out.
After obtaining the net amount by subtracting legitimate expenses from the income, you must declare the holiday rental income in the IRPF under the category; ‘income from real estate.’ Even if the property is jointly owned, the calculation is divided between the owners and can be declared separately or jointly according to tax laws.
How do you declare the period of the holiday home that is not rented?
One of the most recurring doubts is how to indicate the period, in which the holiday home hasn’t been rented out. To do this, you will need to calculate 1.1% of the value of your property as stated in the Land Registry (or 2% in the case of older properties where the valuation has not been revised after 1993). The amount must then be divided by 365 and multiplied by the number of days the property has not been rented.
We hope that after reading this post, we’ve been able to clear your doubts about how to declare your apartment as a tourist rental, which is very important to do correctly. Otherwise, owners will be exposed to significant fines and sanctions from the tax authorities.
All in all, if you trust LOCA BARCELONA to market your holiday rental, you will not have to worry about anything because we will advise you on everything you need, including every aspect related to declaring the rental of your holiday home.
