Andalusia is one of Spain’s most popular regions for holiday rentals, attracting millions of visitors each year. If you own a property and rent it out to tourists, it’s essential to understand the tax obligations that come with it. From income tax to VAT and local regulations, here’s a complete guide to navigating holiday rental taxes in Andalusia.
1. Income Tax on Holiday Rentals
For Spanish Tax Residents
If you are a Spanish tax resident, your rental income must be declared in your Personal Income Tax (IRPF – Impuesto sobre la Renta de las Personas Físicas). Key points include:
•Tax Rate: Progressive rates from 19% to 47%, depending on your total income.
•Deductions: You can deduct expenses related to the rental, such as mortgage interest, maintenance costs, utility bills (when paid by the owner), community fees, insurance, and property depreciation.
•Rental Period Considerations: If the property is rented out part of the year, expenses must be prorated accordingly.
For Non-Residents (EU/EEA Citizens)
If you are not a Spanish tax resident but live in an EU/EEA country, rental income is taxed under the Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes) with a flat rate of 19%.
•Deductions: You can deduct similar expenses as Spanish residents, provided you have documentation.
For Non-Residents (Non-EU Citizens)
For property owners from non-EU countries, the tax rate is 24%, and no deductions are allowed.
2. VAT (IVA) on Holiday Rentals
In general, short-term rentals (less than two months per contract) are exempt from VAT (IVA) unless the property is offered with hotel-like services, such as:
•Regular cleaning during the stay
•Change of bed linen/towels during the stay
•Reception services
If you provide these services, you must charge 10% VAT on your rental income and file quarterly VAT returns.
3. Local Taxes & Fees
Property Tax (IBI – Impuesto sobre Bienes Inmuebles)
All property owners in Andalusia must pay IBI, an annual municipal property tax based on the cadastral value of the property. The rate varies depending on the municipality.
Rubbish Collection Tax (Tasa de Basura)
Most Andalusian municipalities charge an annual fee for waste collection services. The amount depends on the property’s location and size.
Tourism License & Local Regulations
Since 2016, all holiday rentals in Andalusia must be registered with the Andalusian Tourism Registry (RTA). A license number is required to advertise your property legally. Some municipalities, such as Marbella and Málaga, are imposing stricter rules on short-term rentals, including zoning restrictions and community approval requirements.
4. Declaration & Payment of Taxes
•Spanish residents: Report rental income in your annual IRPF return (Modelo 100).
•Non-residents: File quarterly tax returns using Modelo 210 (even if the property is vacant for part of the year). For 2025 this has been changed to a yearly report!
•VAT taxpayers: File quarterly Modelo 303 returns if applicable.
Failure to declare rental income can result in penalties and fines, so it’s crucial to stay compliant.
Final Thoughts
Renting out your property in Andalusia can be highly profitable, but it’s essential to understand and comply with tax obligations. Whether you’re a resident or a non-resident, keeping accurate records and staying updated with local regulations will help you avoid potential fines and maximize your rental income.
If you’re unsure about your tax situation, consulting a local tax advisor can save you time and ensure full compliance.
Thinking of renting out your holiday home in Andalusia? Make sure you’re tax-ready and stay compliant with the latest regulations! We can help you, contact us now