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Tourist rentals Spain – July 2025

Starting July 1, 2025, new regulations will come into force that will directly impact how you can list your property on digital platforms such as Airbnb, Booking.com, and other similar websites.

What do these new regulations involve? Digital One-Stop Shop
The Spanish government will begin implementing Regulation (EU) 2024/1028 of the European Parliament and of the Council, adopted on April 11, 2024, along with Royal Decree 1312/2024 of December 23. These measures govern the procedure for the Single Rental Register and establish a Digital One-Stop Shop for managing rental properties.

The purpose of this new system is to streamline the collection and exchange of data related to short-term tourist rental services.

Do you want to know more about the New regulations for tourist rentals in Spain starting 1 July 2025? Read here!

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Non-Resident Tax in Spain

Owning a property in Spain involves certain tax obligations, even if you do not reside in the country. If you own real estate in Spain without residing there permanently, it is essential to understand the relevant taxes to avoid penalties and ensure compliance with Spanish tax regulations. In this guide, we will explore the taxes that non-resident owners must pay, such as the Property Tax (IBI), the Income Tax for Non-Residents, and the Wealth Tax, among others.

Who is considered a non-resident in Spain?

In Spain, a non-resident is any individual or legal entity that does not have their habitual residence in the country. For individuals, the main criterion is the number of days spent in Spain: spending less than 183 days in a calendar year generally means being considered a non-resident. For legal entities, residency depends on the location of their effective headquarters, which must be outside Spain to be classified as non-resident. Despite not living in the country, non-residents who own property in Spain must fulfill certain tax obligations.

Tax obligations for non-residents with properties in Spain

As a non-resident owner, you will need to pay various taxes related to your property in Spain, such as the Income Tax for Non-Residents (IRNR) and the Property Tax (IBI), regardless of whether you generate rental income.

  1. Property Tax (IBI)
    The IBI is a municipal tax that all property owners must pay, including non-residents. It is calculated based on the cadastral value of the property, which is set by the municipality. It is important to ensure it is paid each year to avoid penalties. Many municipalities allow for bank direct debits to facilitate payment.
  2. Garbage Collection Fee for Non-Residents
    In addition to the IBI, non-resident owners must also pay a local fee for garbage collection, which covers waste collection services. This fee is separate from the IBI and must be paid according to the deadlines set by the local municipality to avoid surcharges.
  3. Income Tax for Non-Residents (IRNR)
    This tax applies to all non-resident property owners in Spain, regardless of whether they receive rental income. It is based on the cadastral value of the property, and the imputed income is usually 2% of this value or 1.1% if the cadastral value has been updated in the last ten years. The declaration must be made before December 31 each year, and non-resident owners are responsible for calculating and paying this tax.
  4. Wealth Tax
    If your assets in Spain exceed the threshold of 700,000 euros, you will be required to declare the Wealth Tax. This tax applies to the value of all assets you own in Spain, including real estate and bank accounts. The declaration must be submitted to the autonomous community where the property is located, following the established deadlines.
  5. Solidarity Tax for Large Fortunes
    Recently introduced, this tax affects individuals with a wealth in Spain exceeding 3,000,000 euros. Non-residents who exceed this threshold must declare and pay this tax between July 1 and July 31 of the year following the tax year, which ends on December 31.

Penalties for non-compliance

Failure to meet tax obligations can result in economic penalties and legal proceedings. To avoid these consequences, it is highly recommended to consult a tax advisor specialized in Spanish legislation.

Why choose our tax advisory services?

Our team at Welex offers personalized services for non-residents, ensuring compliance with tax regulations in Spain.

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Deductible expenses for model 210 IRNR for Non-Residents who own rental properties in Spain

By Welex, your efficient tax advisors in La Costa del Sol. When it comes to owning a property in Spain but not being a resident there, all expenses derived from the rental of that property are deductible when filing the tax return, as long as the non-resident belongs to the European Economic Area (EEA). Non Spanish-resident taxpayers who do not belong to the EEA will not have any deductible expenses.

Not all deductible expenses can be fully deducted, as some expenses are prorated based on the number of days the property has been rented. For example, home insurance or the corresponding rates, or the garbage collection fees.

Certain expenses, such as those for repairs and maintenance, may sometimes be confused with improvement costs. For instance, installing a new elevator is considered an improvement, whereas replacing the old one with a new one can be classified as repair and maintenance. Therefore, it is important to differentiate which can be deducted and which not.

 

Deductible expenses on rental properties in Spain for non-resident owners

 

Repair versus improvement costs in Spain

Are you willing to proceed with a refurbishment or a rehabilitation at your Spanish home that you are renting out? Are the reparation costs deductible for tax purposes at the time of declaring the rental income in Spain? Welex your multilingual tax adviser in Spain, located at the heart of the Costa del Sol, has the pleasure to provide you with some clarifications on the deductibility of costs regarding properties in Spain that are rented out.

It’s crucial to distinguish reparation and improvement costs specifically as repair and maintenance expenses are fully deductible in the year they occur, limited by the income of the rent received, while the improvement costs are non-deductible for Spanish income tax purposes when a property in Spain is rented out by a non-tax resident.

At Welex, we can confirm that recently, Spanish national administrative doctrine, and even judgments from higher courts in certain autonomous communities, assert that whenever there is a replacement of elements, it is always considered repair and maintenance, even if there is actually an improvement involved.

 

Other Deductible Expenses for out-rented properties in Spain

The law in Spain states that only directly related expenses to the activity can be deducted, and these expenses must have a direct and inseparable economic link with the activity carried out in Spain. It is very important to count with advisors that are updated with the recent regulations on Taxation for Non-Residential Rental Income.

 

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If you have any queries, contact Welex now or visit our offices, your efficient multilingual tax adviser in Spain, for any query regarding your tax liabilities in Spain being tax or non tax resident.

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The Importance of Rent Price Appraisal in Related Party Transactions in Spain

Have you ever wondered if it’s necessary to appraise the rent price in related party transactions in Spain? The answer is yes, and at Welex, your law firm and tax advisors in La Costa del Sol, we want to explain why it is so important.

Why is an Appraisal Necessary?

When renting a property from your own company, it is crucial to ensure that the agreed value matches the market value. This not only complies with Spanish legislation but also avoids potential adjustments by the tax authorities. In short, a precise and professional appraisal protects you and ensures that everything is in order.

Legislation and Regulations in Spain

To give you some context, Royal Decree 634/2015, which approves the Corporate Income Tax Regulations in Spain, clearly establishes in its Article 17 the need to determine the market value in related party transactions. This comparability analysis with similar transactions between independent entities is fundamental. It ensures that the agreed price respects the arm’s length principle.

Article 17: Determination of the market value of related party transactions: comparability analysis

Spanish Jurisprudence

Spanish jurisprudence also underscores the importance of appraisal. For example, the Judgment of the Superior Court of Justice of the Community of Madrid No. 552/2023 allows the tax authorities to check and adjust the value of related party transactions to ensure that they are valued at the normal market price. This may include the need for an appraisal in certain cases.

«The tax authorities may check that transactions carried out between related persons or entities have been valued at their normal market value and will make the necessary value adjustments.»

Administrative Decisions in Spain

Similarly, the administrative doctrine in Spain, such as Binding Consultation No. V0746-24 of the General Directorate of Taxes, highlights the importance of valuing assets in related party transactions at their market value. This suggests that performing an appraisal is essential to determine this value.

«The market value will be understood as the value that would have been agreed upon between independent parties, allowing for any of the methods provided for in Article 18.4 of this Law.»

Implications and Limitations

Although an appraisal is generally necessary to comply with tax regulations in related party transactions, it is important to consider that methodologies and accuracy may vary depending on the type of transaction and the assets involved. Additionally, administrative and judicial decisions can influence how these rules are applied in specific cases.

At Welex, we are here to help you with any tax and accounting queries, we are expert in those areas.

To read more about accountancy in Spain, visit our blog!

https://www.welex.es/category/spanish-accountancy/

Do not hesitate to contact us for professional advice and to ensure that all your transactions comply with the current regulations.

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Are Invoices from a Nutritionist in Spain Subject to VAT?

Welex, your tax advisor in Spain, is pleased to provide a detailed guide on the application of VAT to services provided by nutritionists in Spain. Whether these services are subject to or exempt from VAT has raised many questions among professionals and their clients. Below, we clarify this dichotomy in accordance with current legislation.

Application of Spanish VAT to Nutrition Services

In general, invoices issued by a nutritionist in Spain are subject to VAT. However, there is a significant exception: when the services provided are specifically aimed at the diagnosis, prevention, and treatment of diseases, they are exempt from VAT according to current regulations.

Administrative Decisions in Spain

The Spanish General Directorate of Taxes has issued several binding resolutions that clarify the application of VAT to services provided by nutritionists. Some of the most relevant are:

  1. Binding Resolution No. V0781-23:
    • The VAT exemption applies to medical, surgical, and health care services with therapeutic purposes, diagnosis, prevention, and treatment of diseases, provided by legally recognized medical or health professionals.
  1. Binding Resolution No. V2538-22:
    • It reiterates that for a professional’s services to be exempt from VAT, they must meet both objective (nature of the services) and subjective (qualification of the provider) requirements.
  1. Binding Resolution No. V0477-22:
    • Specifically for nutritionists, it establishes that services aimed at the diagnosis, prevention, and treatment of diseases may be exempt from VAT. However, services with other purposes, such as aesthetic improvements or weight loss plans not related to a medical condition, are subject to VAT at the general rate of 21%.
  1. Binding Resolution No. V2129-21:
    • It expands the interpretation to include dietitians-nutritionists within the concept of medical or health professionals, as long as their services are related to the diagnosis, prevention, and treatment of diseases.
  1. Binding Resolution No. V1643-20:
    • It reinforces that health care services provided by medical or health professionals, including nutritionists recognized as such, are exempt from VAT under Article 20 of Law 37/1992.

Implications and Limitations

It is crucial that the services provided by nutritionists are clearly related to the diagnosis, prevention, or treatment of diseases to benefit from the VAT exemption in Spain. Services that do not meet these criteria, such as those aimed at aesthetic improvement or weight loss plans not linked to a medical condition, are not exempt and are subject to VAT at the general rate of 21%.

Additionally, nutritionists must be recognized as health professionals according to legal regulations for their services to be considered VAT-exempt.

Tax Advice in Marbella

If you need tax advice in Marbella, the Costa del Sol, or any other part of Spain, do not hesitate to contact our team of economists and tax advisors. At Welex, we are committed to providing the best guidance to ensure you comply with all tax regulations efficiently and safely.

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Taxes on the sale of property by non-residents in Spain

At Welex, a firm of lawyers and economists in La Costa del Sol Spain, we recognize the legal challenges faced by non-residents when selling a property in Spain. In this blog, we will discuss in detail the taxes and duties on the sale of property by non-residents in Spain.

If you are a non-resident in Spain and have decided to sell your property, you should be aware of two payments that need to be taken into account after the sale of property by non-residents in Spain:

  1. On the one hand: the payment of the capital gains tax.
  2. On the other hand: the payment of the plusvalia tax in Spain.
  1. Capital gain from a sale as a non-resident

When an individual buys a property in Spain and the seller is a non-resident, the buyer must withhold and pay on behalf of the seller 3% of the sale price as an advance payment of the non-resident income tax to the Tax Agency. However, this withholding is not necessary if the seller can prove that he is subject to personal income tax (IRPF) by means of a certificate issued by the Spanish tax authorities, i.e., that he is a tax resident in Spain.

The capital gain will be determined by the difference between the transfer value of the property and its acquisition value.

  • The transfer value of the property will be the sale price, from which the expenses and taxes inherent to the transfer paid by the seller in Spain will be subtracted.
  • The acquisition value will be the purchase price of the property, to which the expenses and taxes inherent to the acquisition will be added.
  • The gain due to the difference between the transfer value and the acquisition value will be taxed at the rate of 19%, being this the amount to be paid, after deducting the amount corresponding to the 3% withholding.

In the event that there is no gain on the sale of the property in Spain, the seller is entitled to request a refund of the 3% paid by the buyer.

For a better understanding, we will use an example from our office:

A non-resident,

  • Has a house that has been sold for 600.000€ in 2024 and which selling expenses amount to 45.433,29€.
    • Transfer value: 554.566,71€.
  • The house, which was purchased for 320,000 in 2010; whose purchase costs were 27,644.74€.
    • Acquisition value: 347.644,74€.
  • The gain is calculated in order to know how much tax to pay:
    • Gain: 206.921,97€
  • A 19% tax would have to be paid on the gain. In this case: 315,17€
  • As 3% (€18,000) will have already been withheld by the buyer and deposited with the tax office at the time of the transaction,
  • The non-resident seller in Spain, still has to pay 21.315,17€ (39.315,17 – 18.18€).

 

Taxes on the sale of property by non-residents in Spain

 

  1. Plusvalia tax in Spain

With regard to the plusvalia tax on the sale of property in Spain, the Tax on the Increase in Value of Urban Land (IIVTNU) is a tax on the increase in value of the land being sold as a result of the transfer of the property in Spain. Its payment corresponds to the seller, and the buyer is subsidiarily responsible for the payment in case of non-resident sellers in Spain.

If you are considering the sale of your property in Spain, we invite you to contact our offices. We will be pleased to provide you with detailed information on all costs and taxes related to the sale of your property. At Welex, we are committed to providing you with expert and personalized advice to ensure a smooth and seamless process. Please do not hesitate to contact us; we will be happy to assist you.

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Swimming Pool Construction in Spain: Crucial Steps and Legalization

Building a swimming pool in Spain is an exciting project that adds value and enjoyment to any property on the Costa del Sol. However, it is crucial to follow a proper process to avoid long-term legal problems. In this blog, Welex, a firm of lawyers and accountants in La Costa del Sol, will explore the steps necessary to obtain the required licenses and permits, as well as the importance of legalization in the case of unauthorized construction.

 

The first step is to hire a competent technician to assist you in applying for the required licenses for the construction of a swimming pool in Spain. He or she will have to apply to the competent Town Hall for a Building Permit, presenting a technical and execution project which must include the following:

 

– Descriptive report.

– Construction report.

– Compliance with the technical building code.

– Calculation of structure and installations.

– Geotechnical information on the land.

– Health and safety study.

– Quality control plan.

– Construction waste management.

– Geotechnical information on the land.

 

If, from the documentation received, the Town Hall verifies that the project complies with the local regulations in force, you will be granted a Major Works License for the construction of the swimming pool in Spain.

 

With the license granted, you can proceed with the construction of the swimming pool following the approved technical project. Once the work has been completed, it is crucial to sign the declaration of new construction before a notary in Spain. In addition, it is recommended to register the swimming pool in the land registry to validate the construction against third parties and ensure its legality in Spain.

 

If for some reason the pool was built without the required licenses in Spain, it is possible to legalize it. To do this, it is essential to have a competent technician draw up a technical legalization project, complying with current regulations. The process will include the payment of municipal fees and taxes.

 

Once approved by, for example, the Marbella Town Hall, the declaration of new construction must be signed before a notary and we recommend registering it in the Land Registry in order to make it valid in the eyes of third parties.

 

The Declaration of New Construction, as we have mentioned, whether the swimming pool has been built with a Building License in Spain, or whether it has been legalized afterwards, the Deed of New Construction must be signed in the presence of a notary in Spain. This declaration of construction by means of a public deed is subject to Stamp Duty (Actos Jurídicos Documentados).

 

At Welex law and accountancy firm in Marbella, Spain, we can assist you with the signing of the declaration of new construction, the registration of the swimming pool in the land registry, land registry and the filing of the above-mentioned taxes.

 

Trust our expert property lawyers on the Costa del Sol for a professional and smooth legal process for the construction of your swimming pool in Spain, or for other legal matters.

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Tourist Rental Licenses in Ibiza, Spain: Legal Requirements and Procedures

Welex, a leading firm of lawyers and accountants in Spain, explains in this article everything you need to know about tourist rental licenses in Ibiza, Spain.

 

 

If you are considering purchasing a property in Ibiza with the intention of renting it out to tourists, we invite you to explore our blog. Obtaining a Tourist Rental Licence in Ibiza is not a straightforward process and not all properties are eligible.

Firstly, it is crucial to understand that a holiday rental covers periods of less than 30 days. To rent a property for less than 30 days, it is required to obtain a Tourist Rental Licence. Welex, a firm of lawyers and economists on the Costa del Sol, is here to answer any questions you may have.

The Tourist Rental Licence in Spain is a permit granted by the Administration, allowing owners to use their properties for tourist purposes. Each autonomous community has its own regulation, and in this blog, we will detail which properties can obtain the licence and the steps to follow in Ibiza, Spain.

It is important to note that not all homes in Ibiza can obtain this certificate. Only detached houses are eligible to apply. However, obtaining the licence does not guarantee approval, as the administration will analyse each case individually.

The following is a non-exhaustive list of minimum requirements that properties must meet in order to obtain a Tourist Rental Licence in Ibiza, Spain:

  1. Habitability Certificate.
  2. Location in Tourist Zone.
  3. History without Serious Sanctions.
  4. Antiquity of the Property: Minimum 5 years.
  5. Energy Efficiency Certificate: Category D or higher, for dwellings built after 31 December 2007; Category F or higher, for earlier constructions.

 

In addition, the following documents must be presented to the corresponding local council:

  1. Responsible Declaration of Commencement of Activity of commercialisation of Tourist stays in dwellings.
  2. Documentation on the property.
  3. Plans of the property.
  4. The number of beds for guests must be indicated, which may not exceed the number of persons legally authorised to occupy the property (as established in the cédula de habitabilidad).
  5. Certificate issued by the town hall accrediting that the property is located within the tourist rental zone.

The application must certify that the property complies with all the requirements for tourist rentals.

Once the application has been completed and the appropriate fee paid, a preliminary licence will be issued. The simple submission of the application implies the declaration of compliance with all legal requirements for renting, thus allowing to start renting the property in Spain immediately.

Subsequently, the competent authorities will carry out an inspection of the property to verify its conformity with the information declared above. In case of discrepancies, the property will be cancelled from the property register, leaving the property immediately ineligible for any activity related to tourist rentals in Ibiza, Balearic Islands.

The costs involved in obtaining such a licence for tourist rentals in Ibiza currently amounts to 600 euros for the application, plus the following fee per available bed in the accommodation:

Number of Beds Euros
1 4.300,00
2 8.643,00
3 13.029,40
4 17.459,70
5 21.934,30
6 26.453,70
7 31.018,20
8 35.628,40
9 40.284,70
10 44.987,50
11 49.737,40
12 54.534,80

 

To conclude, with reference to those properties that already have a Tourist Rental Licence, they maintain their validity and it will not be necessary to re-apply for such a licence.

Finally, and for information purposes, from February 2022 a moratorium of up to four years has been established for the construction of new tourist accommodation, as a consequence, all applications for new licences have been held back.

For more information about the Tourist Rental Licence in Spain and how to find out if the house you want to buy is eligible for such a licence, please do not hesitate to contact our team of lawyers specialised in real estate transactions throughout Spain.

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The constitution of a limited company in Spain.

At Welex, leading law and accountant firm in Marbella, we would like to explain briefly and simply the steps to be taken if you have decided to set up a limited company in Spain: The constitution of a limited company in Spain. It is compulsory for the company to be incorporated by signing a public deed and it must be registered in the Spanish Commercial Register.

 

 

First, you need to choose a name for the company and apply to the Central Commercial Register for a certificate to confirm that the name you have chosen has not already been registered in Spain.  An entity whose name is identical to an existing name cannot be entered in the Mercantile Register.

 

The application for the name to be registered must be made by the interested party or beneficiary of the certificate. Once the certificate has been obtained, it will be valid for a period of six months from the date on which it was issued in Spain.

 

In second place, you need to decide who will be the shareholders of the entity, the total share capital and the participation of each partner in this capital. The share capital in Spain cannot be less than one euro, and whenever it is less than three thousand euros, a figure at least equal to 20 percent of the profit must be allocated to the legal reserve until this reserve together with the share capital reaches the amount of three thousand euros. Furthermore, in the event of liquidation in Spain, if the company’s assets are insufficient to meet the company’s obligations, the shareholders are jointly and severally liable for the difference between the amount of three thousand euros and the amount of the subscribed capital. The company may also have a sole shareholder, whether a natural person or a company in Spain.

 

In third place, you need choose a domicile in Spain, at the place where the effective centre of administration and management is located, or where your principal place of business or operation is located in Spain.

 

In fourth place, you must appoint a sole director or several directors, or a board of directors, to manage and represent the company in Spain. The director may be a natural or legal person and, unless the articles of association do not allow it, does not need be a shareholder.

 

In fifth place, it will be necessary to draw up the articles of association that will govern the operation of your company in Spain, which will include, among other things, the name of the company, the corporate purpose, the registered office and its share capital, the number of shares into which this capital is divided and the nominal value and numbering of the shares.

 

Please note that the duration of the company shall be indefinite, unless the articles of association provide otherwise.

 

Once the deed of incorporation has been signed before a notary by the founding partners and the director of the company in Spain, within two months the deed must be presented to the Companies Register for registration, after settlement and payment of the corresponding taxes and expenses.

 

If you wish to have assistance with the incorporation and registration of your company in the Spanish Commercial Register, please do not hesitate to contact our offices of Welex, lawyers in La Costa del Sol. We will carry out all the necessary formalities for the incorporation of your company in Spain.

 

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Tax regime for travel agencies in Spain

The Welex team of lawyers and accountants is pleased to write a few lines on the tax regime for travel agencies in Spain.

The travel agencies in Spain are subject to a special tax regime with regards to way the of determining the taxable base for calculating the VAT due.

This regime applies to Spanish travel agencies, tour operators and, in general, any entrepreneur or professional in Spain when they meet the following requirements:

  • They act in their own name in respect of travellers.
  • They use services or goods supplied and rendered by other entrepreneurs or professionals in carrying out the trip.

This special Spanish tax scheme does not apply when own means of transport or hotel and catering services are used. But if on the journeys are made using partly own and partly other people´s means, this special scheme only applies to services provided by other people´s means.

Accommodation or transport services provided jointly or separately and, where appropriate, also provided with other complementary services, shall be considered to be journeys.

 

 

Taxes to be taken into account at the time of running a travel agency in Spain.

  • VAT in Spain charged on supplies of services:

There is no obligation to include the VAT in Spain separately on the invoice, it is understood to be included in the price and, therefore, will not be deductible by the customer.  But as from 1st of January 2015, if the business customer so requests, it is possible to opt for the general VAT system.

The taxable amount will be the gross margin of the travel agency.

 

  • Spanish VAT deductible on purchase of services:

It shall not be deductible when it corresponds to purchases of goods and services made for the purpose of the journey which are of direct benefit to the traveller.

The rest of the VAT in Spain is deductible.

  • Exempt transactions:
  • Transactions are exempt from VAT where the supplies or services are made outside the European Union.
  • When the journey takes place in different countries, inside and outside de Union, only that part of the journey which takes place in the third countries is exempt in proportion to the costs incurred in each of them.
  • Invoicing obligation in Spain:

Entrepreneurs and professionals covered by this special regime are not obliged to state the amount charged separately on the invoice, and it shall be understood to be included in the price.

At the Spanish invoice must include the mention: “special regime for travel agencies” – “régimen especial de las agencia de viajes”

 

If you wish to know more about the Tax regime for travel agencies in Spain, keep reading here.

If you need advice on the tax regime for travel agencies in Spain, or if you need any tax or legal advice, do not hesitate to contact the Welex team of lawyers and accountants in Spain.

 

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Link to: Contact

Do you have any legal question?

At Welex we guarantee you a professional and individual treatment. All our professionals have years of experience in their field, which they put at your service with the aim of attending your affairs quickly and efficiently. Please contact us and we will be happy to advise you. (+34) 952 77 55 21 | info@welex.es

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