Short-term rental taxation: key deductions and benefits
Renting out your property seasonally in Spain can be very profitable, but to get the most out of it you need to fully understand the tax system. taxation of temporary rentals It offers interesting deductions that many homeowners aren't aware of. In this article, we explain how to take advantage of them.
How does short-term rental taxation work?
Short-term rentals—for a minimum of one month—must be declared as income from real estate capital in your personal income tax return. If you rent out your property this way, you must include the income in your tax return, but you can also deduct multiple expenses.
This type of rental does not require self-employment registration, as long as you do not offer hospitality services (such as daily cleaning or meals).
Tax deductions available for homeowners
One of the main attractions of temporary rental taxation is the possibility of deduct expenses related to your property. Here some examples:
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Mortgage loan interest.
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Property Tax (IBI) and other fees.
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Community and maintenance fees.
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Home insurance.
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Repairs (not structural reforms).
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Depreciation of property and furniture.
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Fees from management companies such as youhomey.
Keeping invoices is key to justifying these deductions to the Treasury.
Does the 60% net income reduction apply?
It depends. The 60% reduction in personal income tax only applies if the lease is for tenant's habitual residenceMany short-term rentals could qualify for this option if the contract justifies it, as is the case in cases of job transfers.
Consult with an expert or manager to determine if this tax advantage applies to your particular case.
Simpler taxation with comprehensive management
Properly managing tax matters requires time and expertise. That's why more and more owners are delegating this work. youhomey, We not only rent your property for months to verified tenants, but we also We help optimize the taxation of temporary rentals.
From comprehensive property management to documentation support, we make renting easier and more profitable for you.
Conclusion
Understanding the taxation of short-term rentals can make a difference in your annual profitability. Taking advantage of deductions, applying legal reductions, and delegating management to a professional team like Youhomey allows you to rent with peace of mind, complying with the law, and maximizing your profits.
