(English) Monthly Newsletter - Arcos & Lamers Asociados

New regulations to the holiday rental market

Due to the increasing number of new ways to travel, the Regional authority here in Andalucía so known as “Junta de Andalucía” has decided to regulate the properties that offer the service of tourist accommodation in order to establish minimum guarantees of quality and safety for the tourist equipment users.

This new regulation involved those properties that are rented in its whole and which are rented out for rooms, not including those renting for more than two months time, holidays without profit, properties in rural areas and real estates formed by three or more homes.

La Junta de Andalucía establishes a series of requirements to be met:

Tax liabilities for non residents in Spain; Non resident tax

Rental - Deemed Income Tax in Spain.

All non residents owning a property in the Spain Territory have the legal obligation to present a Non Resident’s annual Tax Return.

Even if your Spanish property is left empty or you do not rent it out to a third party, the Spanish Law presumes a “Deemed Rental Income” and all owners of the same are required to fill up a personal tax declaration and issue the corresponding payment due. The tax to be paid should be calculated annually as it depends on several factors which may vary from one year to another. For more information on see our blog:

http://www.arcos-lamersasociados.com/1728/taxation-related-to-spanish-properties-for-non-residents-part-2-income-tax-in-spain/

During 2015 there was a revision of the tax rates applicable to the Income of all Non resident Tax Payers in Spain without permanent establishment. See table below stating the general tax rate standpoint: