Holiday rental income statement

The declarations may be submitted this year from April 4 through the Internet or telephone, but for face-to-face attention it will be necessary to wait until May 10.

In addition, the fiscal data consultation service and the reference number is advanced to March 15 with the aim of streamlining the campaign itself. The deadline for delivery will be July 2 and a few days before, on June 27, in the case of direct debits.

From April 4 you can submit statements that do not need to add information from the new app, while those that require modifications will have to be processed through its web program. Once modified, all can be confirmed through the mobile application of the Tax Agency.

One of the questions that can be asked is how the income obtained from vacation rentals is taxed. In this sense, we must take into account different variables.

In the same fiscal year it is necessary to differentiate two periods:

• The time that the dwelling has been rented, from which the full income obtained will be declared and the expenses specified for the rental can be deducted

• The period in which the property has been free, which will correspond to the income imposed by the Treasury for having a second property.

The net return for which the tax will have to be paid will be the result of subtracting the expenses from the income obtained. In other words, the cost of advertising for the property, the interest on the mortgage, repairs, some payments such as the IBI, the community, the rubbish rate or household insurance, etc. may be discounted. You can only deduct the proportion of the expense at the time that the rented property was held, except for the promotion of the property that may be deducted in full. To know what is to be taxed for the time that the house has been free, it is necessary to calculate 1.1% of the cadastral value (2% if the last cadastral review was made before 1994), divide that value between twelve months (or between 365 days) and multiply the result by the months or days that the rented property has not been. This will result in the attributable performance.

In the case of not declaring, the Treasury sends the taxpayer a settlement proposal, which includes the undeclared income to be included within a certain period. If it is understood that the action taken has been originated with the intention of fraud, a sanction may be imposed that would go from 50% and 150% of the undeclared.

At Ripoll & Mateu Solicitors Mallorca we advise, defend and represent our clients at all levels. Our greatest asset is an infrastructure of professional leaders in each field of action, especially Real Estate and Tax, as well as our international vocation and multilingual capacity.


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