EXPERT ADVICE – May/June 2022



The rental of a property in Spain can be exempt from VAT (IVA) but also sub ject to different VAT rates, specifically 10 per cent or 21 per cent depending on the type of property and services provided to clients. The VAT Law (LIVA) indicates that entities or persons engaged in the rental of tourist accommodation are considered, for the purposes of this tax, to be entrepreneurs, and when the activity is carried out by entrepreneurs “the rental of tourist accommodation shall be subject to VAT”. The activity of accommodation is different from the activity of renting ac commodation, as the former normally includes other services that comple ment the letting of the property. These services (as defined in the law), are, among others: · Catering · Laundry service · Cleaning services Other services outlined by the General Directorate of Taxes, include: · Reception and/or permanent and continuous customer service in a space set aside for this purpose · Periodic cleaning of the property or accommodation · Periodic change of bed and bath linen · Custody of luggage · Newspapers · Reservations · Food and catering services

These types of services will be invoiced with 10 per cent VAT, like a hotel es tablishment in Spain. The activity of a tourist flat is included in group 685 of the Economic Activities Tax (IAE). It is an “extra-hotel tourist accommodation”, itself included in “ac commodation services”. Included in this group are most of the accommoda tion services that are different from the more common, such as (for example) a hostel, hotel, guest house, apart-hotel, campsite, etc. If the services indicated above are not offered – and, on the other hand, an other series of services listed below are carried out, which are not understood to be complementary to the hotel activity – VAT should not be charged and will not have to be declared in invoices for that holiday rental to the AEAT. · Cleaning of the property before the stay and after the departure of each client · Change of textiles (towels, sheets, etc.) before the stay and after the depar ture of each client · Cleaning of the communal areas of the building and/or urbanisation where the property is located · Maintenance, repairs and assistance for occasional problems with electric ity, plumbing, locks, electrical appliances, etc. Welex Lawyers & Accountants C/ Ramón Gómez de la Serna 23, Local 7, Marbella Tel. (+34) 952 775 521

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