New guidelines for holiday rentals in Spain

From July 2018 it is necessary for rental platforms like Airbnb AND rental agencies to take in use the new “Modelo”, and it is considered YOUR responsibility everything is declared. 

Make sure your property manager has everything in order, if not, the fines might be high!

But DON’T WORRY! We handle all this and more for all our rental properties.

New guidelines on holiday rental

The new guidelines basically consist of that entities like Airbnb, other holiday rental platforms and/or persons who provide a service between owner/tenant must report its activity in a new form. This form now consists of information like:

  • Owner of the residence
  • Cadastral reference
  • Dates the property is rented out
  • Income

This means that all your rental income now needs to be declared every quarter. Of course, in theory you should have been doing this all along, but if you didn’t, this is the tax authorities newest solution to get a step closer to having some control over the vacation rentals in Spain.


The new guidelines will be in effect July 2018, but all of 2018 must be declared within the year.

Now what?

There are a couple of things that needs to be in order including existing regulations that needs to be followed.

  • All properties rented out for vacational purposes must have a license number issued by the local tourist office
  • Contracts between owners and agencies/agents needs to be in place, to state that the company is allowed to operate on behalf of the owner
  • Documentation of the tenants needs to be provided if the Guardia Civil come knocking on the door. ID documents are to be submitted to Guardia Civil before arrival of the tenants

All these elements must be in place, in addition to the “Modelo” the entities now need to provide. This again needs to reflect the other declarations of the entity and your declaration each quarter.

Be sure that your property manager has all these things under control and ask them to tell you their procedures. They should provide you with all the information and handle all this for you. They should also provide you with the documentation you need for your declaration. If they don´t follow these rules and/or doesn’t take it seriously, the consequenses are on you. We recommend going with a legal, professional company.

Will I still be able to make money? 

Yes! The taxes for non-residents from EU, Norway, Iceland when renting out a holiday home in Spain is 19%. From this you can deduct, among other things, costs for property managers, a percentage of the utility costs based on amount of the rented dates, and a general deduction of 3% of the property value, and more.

The reason you will still earn money is that rental prices is based on the demand and supply. The supply will decrease, and then the prices will go up. The decrease will be a result of alot of agencies not following the new rules. For these, eventually, their system will fail. For too long companies and private entities have been operating illegally, without any consideration of the laws and local regulations. At the end of the day, you are the one paying for it when they get caught.

This is not just to scare you, its reality. Lately there are more and more news about Guardia Civil doing checks in the Costa Blanca area.

It can’t be stressed enough,

If you still feel unsure, want advice or any kind of help regarding this, don’t hesitate to contact us. We will have everything sorted out for you quickly and easy, so you never need to worry about any possible consequences.

Let us help you make money on your holiday home the right way!

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