Vacation rental taxes in Spain: income tax, VAT, and deductible expenses

Vacation rental income in Spain is taxed as real estate capital income under personal income tax (IRPF). You can deduct expenses like property tax, insurance, proportional utilities, cleaning, maintenance, and property depreciation. If you provide hospitality services, the activity becomes a business and VAT applies. Non-residents pay IRNR with different rules depending on their country of residence.

If you rent out a property to tourists in Spain — whether it's a coastal apartment, a flat in central Madrid, or a rural house in Asturias — the tax authorities want their share. It's not optional. But the good news is that the tax system also lets you deduct a significant amount of expenses, which considerably reduces what you actually end up paying.

This guide covers everything you need to know: which taxes apply, how to calculate what you owe, what expenses you can subtract, what happens if you only rent part of the year, and how everything changes if you're not a Spanish tax resident. No unnecessary jargon, with practical examples.

Important note: this guide is informational and educational. Tax matters have nuances that depend on your personal situation. For specific decisions, consult a tax advisor. What we do here is give you the complete map so you arrive at that conversation knowing what it's about.

The key question: real estate income or business activity?

Before talking about specific taxes, there's a fundamental distinction that determines everything else: how the tax authority classifies your activity.

Real estate capital income (most cases)

If you simply rent your property to tourists — list it, hand over keys, collect payment — your income is classified as real estate capital income (rendimientos del capital inmobiliario). This applies to the vast majority of individual owners renting on Airbnb, Booking, or any other platform.

In this case:

• You pay personal income tax (IRPF)
• You don't charge VAT
• You don't need to register as self-employed (autónomo)
• You declare net income (income minus deductible expenses) on your annual tax return

Business activity (specific cases)

If in addition to accommodation you provide services typical of the hotel industry — daily cleaning during the stay, breakfast, laundry, organized excursions — the tax authority may consider you're running a business activity. It's also considered a business activity if you have at least one full-time employee managing the rentals.

In this case:

• You pay IRPF as business income
• You must charge VAT (10% for tourist accommodation)
• You need to register for business tax (IAE) and social security (RETA/autónomos)
• Formal obligations are significantly greater

The dividing line: the tax authority's criterion focuses on whether you offer complementary hospitality services. Handing over keys, providing clean sheets at the start of the stay, or leaving a property manual is not considered hospitality. Cleaning the property during the guest's stay, serving meals, or providing permanent reception service is.

Most owners renting on platforms fall into the first category. If you have doubts about your case, a tax advisor can confirm it in a quick consultation.

IRPF: how vacation rental income is taxed

What you declare

You must declare all gross income you receive from the rental. This includes:

• The per-night price the guest pays
• Cleaning fees you charge directly
• Any other income linked to the stay (parking, extra equipment, etc.)

You don't include the commissions the platform withholds. If the guest pays €100 and Airbnb withholds €3 as host commission, your gross income is €97. The platform commission is a separate deductible expense (more on this below).

How net income is calculated

The concept is straightforward:

Net income = Gross income − Deductible expenses

That net income is added to the rest of your income (salary, other rentals, etc.) and taxed according to the general IRPF scale. In 2026, the brackets are approximately:

Taxable base	State rate	Regional rate (approx.)	Total approx.
Up to €12,450	9.50%	9.50%	19%
€12,450 – €20,200	12.00%	12.00%	24%
€20,200 – €35,200	15.00%	15.00%	30%
€35,200 – €60,000	18.50%	18.50%	37%
€60,000 – €300,000	22.50%	22.50%	45%
Over €300,000	24.50%	Variable	47%+

The regional rate varies by autonomous community. These percentages are indicative — check the exact brackets for your territory.

Key point: since vacation rental income is added to the rest of your income, the effective rate depends on your overall situation. If you already have a salary of €40,000, rental income will be taxed at the marginal rate for that bracket, not starting from 19%.

The 60% reduction does NOT apply to vacation rentals

This is one of the most common mistakes. The IRPF law provides a 60% reduction on net positive income from rentals that serve as the tenant's primary residence. But vacation rental — short stays, rotating guests — is not considered a primary residence lease.

Result: you pay tax on 100% of net income, with no reduction. This is a significant tax difference compared to long-term rental, and something you should factor in when comparing returns.

Deductible expenses: what you can subtract

This is where the tax bill shrinks. You can deduct all expenses necessary to earn the income, as long as they're justified and proportional to tourist use.

Directly deductible expenses

These expenses are directly linked to the rental activity:

• Platform commissions: what Airbnb, Booking, Vrbo, etc. withhold per booking. Keep the platform reports as proof.
• Turnover cleaning: if you hire a cleaning service for each guest rotation, the full cost is deductible. Keep invoices.
• Laundry: sheets, towels, if you use an external service.
• Welcome supplies: amenities, cleaning products, coffee, soap, etc. you provide to guests.
• Professional photography: the cost of listing photos.
• Management software: tools like Autoregistro, channel managers, smart locks, etc.
• Management fees: if you hire a full-service management company, their fee is deductible.

Proportional expenses (if the property isn't rented all year)

If the property is only used for vacation rental part of the year — because you use it yourself the rest of the time, or it simply has no bookings — fixed costs are deducted proportionally to the days rented (or available for rent, depending on the criterion you apply with your advisor).

The standard formula:

Deductible expense = Annual expense × (days rented / 365)

Expenses that are prorated:

• IBI (property tax): the annual bill, prorated.
• Homeowners' association fees: monthly fees, prorated.
• Home and liability insurance: the annual premium, prorated.
• Utilities (electricity, water, gas, internet): prorated by days of tourist use. If you have separate meters or can demonstrate actual consumption during stays, even better.
• Mortgage interest: if the property has a mortgage, the interest (not the principal repayment) is deductible proportionally.
• Waste collection tax: prorated.

Property depreciation

You can deduct depreciation of the property and of furniture and fittings. This is a "non-cash" expense that reduces your income without money leaving your pocket that year.

Property:

• You depreciate the construction value (not the land)
• The rate is 3% annually on the greater of: cadastral construction value or acquisition construction value
• To separate land and construction, use the proportion shown on the IBI receipt

Example: if you bought an apartment for €200,000 and the IBI indicates 60% corresponds to construction, the depreciation base is €120,000. At 3% annually, you can deduct €3,600 per year (prorated if you don't rent all year).

Furniture and fittings:

• Depreciated at 10% annually (10-year useful life)
• Includes furniture, appliances, kitchenware, decoration
• Keep purchase invoices

Example: if you furnished the property with €8,000 in furniture and appliances, you can deduct €800 per year for 10 years.

Repair and maintenance expenses

Maintenance and repair expenses are deductible: painting, plumbing, electrical work, appliance repair, etc. But there's an important nuance:

• Repair and maintenance: deductible. Keeping the property in good condition.
• Improvement: not deductible as a current expense. It's added to the acquisition value and depreciated. Example: replacing a broken window is repair; installing new higher-quality windows is improvement.

The distinction isn't always clear. As a general rule: if you restore something to its original state, it's repair. If you upgrade it beyond what was there, it's improvement.

Non-deductible expenses

• Fines and penalties
• Mortgage principal (only interest is deductible)
• Personal expenses unrelated to the rental
• Land value (not depreciable)

Practical example: what you actually pay

Let's look at a realistic case to ground the numbers.

Situation: María has an apartment in Valencia that she rents on Airbnb. She rents it 180 days per year and uses it herself the rest. Her salary is €30,000 gross annually.

Rental income:

• Gross income (after Airbnb commission): €18,000

Deductible expenses (annual, prorated to 180/365 days):

Item	Annual cost	Proportion	Deductible
IBI (property tax)	€600	49.3%	€296
Homeowners' association	€1,200	49.3%	€592
Home + liability insurance	€400	49.3%	€197
Utilities (electricity, water, gas, wifi)	€2,400	49.3%	€1,183
Mortgage interest	€1,800	49.3%	€888
Property depreciation	€3,600	49.3%	€1,775
Furniture depreciation	€800	49.3%	€394
Cleaning (30 turnovers × €50)	€1,500	100%	€1,500
Platform commissions	€540	100%	€540
Management software	€240	100%	€240
Laundry	€600	100%	€600
Total deductible expenses			€8,205

Net income: €18,000 − €8,205 = €9,795

That income is added to her €30,000 salary. Since she's already in the 30% bracket, the additional €9,795 will be taxed at approximately 30%, which means about €2,939 in additional IRPF for the rental.

Effective rate on gross rental income: 2,939 / 18,000 = 16.3%

Without deducting expenses, she would have paid about €5,400 (30% of €18,000). Deductible expenses save her almost €2,500 in taxes.

VAT: when it applies and when it doesn't

You don't charge VAT if...

You're an individual owner renting your property without hospitality services. This is the most common situation and the simplest: you don't charge VAT, you don't file VAT returns, you don't register as a business.

You do charge VAT if...

You offer complementary services typical of the hotel industry:

• Cleaning of the accommodation during the stay (not just at the start and end)
• Meal or breakfast service
• Laundry during the stay
• Permanent reception or concierge service

In that case, the applicable VAT rate is 10% (reduced rate for hospitality services). You must:

• Register in the business census (model 036/037)
• Issue invoices with VAT
• File quarterly VAT returns (model 303)
• File the annual summary (model 390)

The gray zone

Some services fall in a gray area. For example: does offering a mid-stay cleaning service if the guest requests it turn your activity into hospitality? The Directorate General of Taxes has issued binding rulings on these cases, but interpretation isn't always clear.

Practical rule: if you only provide the equipped property, with cleaning at the start and end of each stay, and don't offer additional services during the stay, you're not in VAT territory.

Renting only part of the year: imputed real estate income

If the property isn't rented and isn't your primary residence for part of the year, the tax authority imputes income for the days it's "at your disposal" without generating revenue.

How it works

• 2% of the cadastral value is imputed (or 1.1% if the cadastral value has been revised in the last 10 years)
• Prorated for the days the property isn't rented and isn't your primary residence
• This imputed income is added to your general tax base

Example: if your property's cadastral value is €100,000 (recently revised) and it's unrented for 185 days per year:

Imputed income = 100,000 × 1.1% × (185/365) = €557

That €557 is added to your tax base and taxed at your marginal rate. It's not a huge amount, but it's something many owners don't know about and the tax authority does account for.

Exception: if the property is genuinely available for rent during those days (listed on platforms, with active pricing) but simply has no bookings, some advisors argue that imputation doesn't apply. This is a debated criterion — consult your advisor.

Non-residents: IRNR

If you're not a tax resident in Spain but own a property you rent to tourists, you pay the Non-Resident Income Tax (IRNR).

EU, Iceland, or Norway residents

• Fixed rate of 19% on net income
• You can deduct expenses directly related to the income (same criteria as for residents)
• Quarterly filing via model 210

Residents outside the EU

• Fixed rate of 24% on gross income
• You cannot deduct expenses (this is the most significant difference)
• Quarterly filing via model 210

Comparative example:

Item	EU resident	Non-EU resident
Gross income	€18,000	€18,000
Deductible expenses	€8,205	€0
Taxable base	€9,795	€18,000
Rate	19%	24%
Tax due	€1,861	€4,320

The difference is substantial. If you're a non-resident outside the EU, the tax burden is more than double.

Imputed income for non-residents

Non-residents are also subject to imputed income for days the property isn't rented:

• EU residents: 19% on 2% (or 1.1%) of prorated cadastral value
• Non-EU residents: 24% on 2% (or 1.1%) of prorated cadastral value

Double taxation treaties

Spain has double taxation treaties with most countries. These treaties prevent you from paying taxes twice on the same income. Generally, income from property rental in Spain is taxed in Spain, and your country of residence allows you to deduct what you paid here. But details vary by country — check the specific treaty.

Regional tourist taxes

In addition to IRPF (or IRNR), some autonomous communities apply tourist taxes that you must pass on to the guest:

Balearic Islands — Sustainable Tourism Tax (ITS)

• Between €1 and €4 per person per night, depending on season and accommodation type
• Charged to the guest and paid to the Balearic administration
• Semi-annual filing and payment

Catalonia — IEET (Tax on Stays in Tourist Establishments)

• Between €0.65 and €3.50 per person per night, depending on municipality and accommodation type
• Barcelona applies an additional municipal surcharge
• Charged to the guest and paid to the Catalan Tax Agency

Other communities

As of this publication, the remaining autonomous communities don't have their own tourist tax in force, although several have debated it. Check your territory's regulations periodically.

Important: these taxes are not a cost to you as the owner — you pass them on to the guest. But you do have the obligation to collect, declare, and pay them. Non-compliance carries penalties.

Formal obligations: which returns to file

If you're a resident and it's real estate capital income

Obligation	Form	Frequency
Income tax return	100	Annual (April-June)
Informative return on tourist rentals	179	Annual (January, filed by platforms)

Form 179 is filed by the platforms (Airbnb, Booking, etc.), not by you. But you should know that the tax authority receives this information and cross-references it with your return. If you don't declare the income, the discrepancy will flag.

If it's a business activity (with VAT)

Obligation	Form	Frequency
Income tax return	100	Annual
Quarterly VAT return	303	Quarterly
Annual VAT summary	390	Annual
Quarterly IRPF installments	130	Quarterly
Business census registration	036/037	One-time

If you're a non-resident

Obligation	Form	Frequency
IRNR return for rental income	210	Quarterly
IRNR return for imputed income	210	Annual
Tax representative (if outside EU)	—	Mandatory

Common tax mistakes

• Not declaring income. Platforms report to the tax authority. If you don't declare, the discrepancy is detected and the penalty includes surcharges and late-payment interest.
• Applying the 60% reduction. It only applies to rentals serving as the tenant's primary residence, not vacation rental. This is the most expensive mistake.
• Not prorating expenses. If you use the property part of the year, you can only deduct the proportion corresponding to days rented.
• Confusing improvement with repair. Improvements are not current expenses — they're depreciated. Deducting them in full can trigger a reassessment.
• Forgetting depreciation. It's the largest deductible expense for many owners and requires no outlay. Not using it is giving money away to the tax authority.
• Not keeping receipts. The tax authority can request documentation for the last 4 years. Without invoices, no deduction.
• Ignoring imputed income. Days when the property isn't rented and isn't your primary residence generate imputed income you must declare.

How to optimize your taxes (legally)

Some strategies to discuss with your advisor:

• Maximize deductible expenses. Make sure you deduct everything the law allows: depreciation, mortgage interest, utilities, insurance, software. Many owners leave money on the table through lack of awareness.
• Professionalize management. Expenses for management tools, automation software, and professional services are deductible. Investing in operational efficiency reduces your taxable base.
• Document everything. Keep invoices, receipts, bank statements, platform reports. A deduction is only valid if you can justify it.
• Plan occupancy. If the property will be empty many days, consider whether it's worth keeping it listed (to argue availability) or whether there are ways to increase off-season occupancy.
• Review your structure. If you manage multiple properties, it may make sense to incorporate. Corporate tax (25%) can be more favorable than the marginal IRPF rate if your income is high. But it has management costs — analyze it with real numbers.

How Autoregistro fits in

Vacation rental taxation isn't something Autoregistro manages directly — that's what your tax advisor is for. But it does facilitate a critical part of the process: keeping your data organized.

Every booking processed through Autoregistro is recorded with exact check-in and check-out dates, number of guests, and stay details. That gives you a clean record of your property's actual activity, which is exactly what you need to:

• Calculate actual occupancy days (to prorate expenses)
• Justify availability periods (for imputed income)
• Provide accurate data to your tax advisor
• Respond to tax authority inquiries with organized documentation

It doesn't replace accounting, but it saves you the chaos of reconstructing the year's activity from Airbnb emails and scattered spreadsheets.