HOLIDAY HOMES IN ANDALUCÍA

ARTICLE SUPPLIED BY WELEX LAWYERS & ACCOUNTANTS

Our geography in Spain offers one of the best destinations for sun-seeking travellers, among others, so it is not surprising that many see the south of Spain as an opportunity to start their own tourist accommodation business. In order to assist you in the process of setting up your holiday rental in Andalucía, we have put together this short guide explaining the differences between tourist apartments (“apartamentos turísticos”) and homes (“viviendas con fines turísticos”) in Andalucía.

According to the regional legislation, there are different types of tourist accommodation depending on their uses and characteristics.

Tourist Apartments

The Junta de Andalucía (regional government) defines the concept of a tourist apartment in Decree 194/2010 as a “set of accommodation units… intended to provide tourist accommodation services, which have adequate furniture and facilities for the conservation, preparation and consumption of food and beverages, and which are subject to exploitation in common by the same owner”.

Tourist apartments are considered to be accommodation establishments that can provide tourist services complementary to accommodation.

Homes for Tourist Purposes

In Decree 28/2016 tourist homes are defined as “properties located on land for residential use, in which an accommodation service is offered for a price, on a regular basis and for tourist purposes”.

Homes for tourist purposes, according to the regulation, are advertised through tourist channels such as national rental platforms, tourist service companies and travel agencies.

The number of places is limited to 15 if the home is rented as a whole, or six if rented by room, and in no case may there be more than four beds per room, with a maximum rental contract period of 60 days.

The regulations comprise a wide range of laws, the main one being Andalucian Tourism Law 13/2011, which regulates all tourist activities in the region. There you can check in detail the requirements that must be met in terms of equipment, accreditation of ownership, occupancy licence, complaint forms, etc.

How is Income Taxed in Spain?

For non-resident taxpayers renting a property for tourist purposes, the income is taxed as being rental from real estate assets. If the owner of the property is resident in another member state of the European Union, in Iceland or in Norway, they will be taxed at a reduced rate of 19 per cent on the income obtained and will be able to deduct expenses incurred in connection with the rental. If they are from outside the EU (and Iceland and Norway), they will be taxed at 24 per cent, and not be able to claim deductions.

If the accommodation is a tourist apartment, the income obtained will have to be declared as deriving from economic activities.

As a taxpayer in Spain, you will be obliged to file a quarterly tax return (form 210) for the income you receive every quarter and an annual tax return.

If you rent a property for tourist purposes in Andalucía during the summer months, you cannot deduct expenses for the whole year. They must be prorated based on the months the property has been rented.