22.10.2024 
Taxation of Tourist Rentals in Spain: Analysis of New Regulations
Spain is traditionally considered one of the most attractive countries for tourist property rentals. However, with increasing demand, the attention of tax authorities also increases. New regulations came into effect in 2024-2025, changing the principles of taxation of income from short-term rentals. Below, we will analyze the main "pain points" of owners of such properties and consider solutions to make tourist rentals as profitable and safe as possible.
Key Changes and Owners' "Pain Points"
Introduction of the IOT (Tax on Tourism Operations)
A new development has been the introduction of the IOT (Impuesto sobre las Operaciones de Turismo). This tax (14% of the total income) is mandatory for everyone who rents out accommodation to tourists on a short-term basis. Only properties in regions with low tourist activity are exempt: there the rate is reduced to 8%. For owners, this means a higher tax burden and the need for careful planning of investment geography.
Strengthening Control over Declarations
A serious "pain point" for property owners may be the system of fines. From 2024, penalties of up to 150% of the underpaid amount are provided for tax evasion or false information. Therefore, it is important for owners to submit declarations on time, correctly accounting for all income and expenses.
Changes to the Tourist License
From August 2024, new rules for obtaining and renewing tourist licenses came into force. They are now issued for 5 years, with stricter requirements for safety, guest registration, and agreement with the building's community representatives (comunidad). If these conditions are violated, you can lose the license and receive a hefty fine (up to 600,000 euros). Additionally, restrictions have been introduced on the maximum rental period (no more than 10 consecutive days), and the ban on renting out individual rooms makes it difficult to partially rent out the property.
Main Taxes on Tourist Rentals
Income Tax IRPF (Impuesto sobre la Renta de las Personas Físicas)
Income from tourist rentals may be subject to IRPF (Impuesto sobre la Renta de las Personas Físicas). If services similar to those of a hotel are provided (regular cleaning, linen change, reception, etc.), the income is considered a business activity. In this case, expenses (utilities, repairs, depreciation) can be deducted in full. If the services do not go beyond the basic ones (preparing the property before arrival and after departure), the income is recognized as income from property, and a different methodology is applied to calculate deductions.
Value Added Tax IVA (Impuesto sobre el Valor Añadido)
If the property owner provides additional services (laundry, meals, reception, etc.), then IVA (Impuesto sobre el Valor Añadido) is also charged at a rate of 10% (for guests). For income without additional services, the rental is exempt from IVA. However, be careful: if there is at least one hotel service, the tax authorities treat it as an economic activity, and then a rate of 10% is applied when issuing invoices. Individual services for property maintenance (for example, cleaning common areas) are not considered hotel services.
Tax on Economic Activities IAE (Impuesto sobre las Actividades Económicas)
IAE (Impuesto sobre las Actividades Económicas) is a direct tax on business, professional, or artistic activities. For most individuals, there is an exemption if the annual turnover does not exceed 1 million euros. But registration in IAE is necessary, especially if you provide hotel services. In this case, the property falls under group 685 ("Non-hotel tourist accommodation").
New Requirements for Tourist Licenses
- Rental period limitation: no more than 10 consecutive days.
- License validity: 5 years, then renewal.
- Mandatory guest registration: all guests from October 1, 2024, must be registered with the police.
- Ban on renting individual rooms: only the entire property can be rented out per day, without exceeding the declared number of sleeping places.
- Neighbors' consent: confirmation is required that the residents of the apartment building do not object to the tourist activity.
- Safety: the property must comply with equipment requirements (fire safety system, evacuation plan, list of emergency numbers).
- Electronic locks for key handover are prohibited.
- Penalties: violation may result in license revocation and a fine of up to 600,000 euros.
Procedure for Legalizing Property for Tourist Rentals
Which Properties are Suitable
To avoid "pain points" in the form of conflicts with the authorities, it is important to understand that the property must meet the criteria for tourist accommodation. An apartment, bungalow, or apartment must have the status of residential property, a certificate of occupancy, working appliances, and comply with sanitary standards (ventilation, hot water, air conditioning, fire-fighting equipment, etc.).
Obtaining a License
The procedure usually includes submitting a "Responsible Declaration" to the local administration (ayuntamiento). The list of documents (NIE, Escritura, cédula de habitabilidad, etc.) may vary slightly depending on the autonomous community. After submitting the documents, an inspection is carried out, which may take up to 3 months. Until the license is obtained, advertising the property as tourist accommodation is prohibited.
Regional Specifics
Each region sets its own rules. For example, in large cities, there may be moratoriums on issuing new licenses, and in some autonomous communities, no additional registration is required for short-term rentals. Therefore, be sure to clarify the details at the local level.
Tax Optimization and Advice
- Correct income declaration. Do not underestimate the amount, considering that online platforms report to the tax authorities using special forms, such as form 179.
- Using deductions. Numerous expenses for repairs, maintenance, and utilities can be taken into account. But it is important to have supporting documents and the correct expense structure.
- Consulting with professionals. Laws change, and penalties are high. Consult a tax advisor if you have a complex case or if you have multiple properties in different regions.
- Keep track of changes in licensing. New deadlines, agreement with neighbors, a ban on electronic locks - all this can greatly affect the profit and legality of the rental.
Conclusion
In 2024-2025, Spain significantly revised the tax and legal framework for tourist rentals. It is important for owners to adapt in a timely manner: pay IOT (Impuesto sobre las Operaciones de Turismo) and other taxes, register the property, obtain a tourist license, and correctly declare income. As a result, you will receive a stable and legal source of income, avoid penalties, and be able to plan the long-term development of your tourist property. To minimize risks, it is advisable to consult with specialists, especially if you do not have experience in Spanish tax law or are not ready to delve into all the details of the legislation.
