Do I have to pay VAT if I rent out a holiday home?
Renting out a holiday home can be somewhat complex, but we will explain in simple terms how VAT applies to the rental of a holiday home and the use of a management company to handle bookings. This is particularly important for property owners in the Balearic Islands who rent their homes to tourists and want […]
Tourist Rentals in the Spotlight: Possible Increase in VAT to 21%
The landscape of tourist rentals in Spain could undergo a dramatic shift if the current national government’s proposal to apply a 21% VAT rate to holiday rentals is approved. This measure has already caused concern among industry stakeholders and property owners. Until now, it was legally permissible for such properties to operate without VAT as […]
Recent developments in short-term rentals
The Supreme Court has ruled that homeowners’ associations can prohibit short-term rentals if more than half of the owners agree, without the need for unanimous consent. Previously, there were doubts about whether unanimous approval or just a majority was required to make this decision. However, the Supreme Court has clarified that a qualified majority of […]
You can now set up a direct debit for your Balearic taxes to be charged from foreign bank accounts.
Effective immediately, foreign taxpayers, both residents and non-residents, can now make their tax payments using bank accounts in other European countries. This European regulation is in line with the provisions of the SEPA directive, which facilitates transfers and payments within the Eurozone, including the 27 member states of the European Union, the Netherlands, and the […]
Avalanche of Donations and Lifetime Inheritances in the Balearic Islands: Is It the Right Time to Act?
In recent months, there has been a significant increase in donations and lifetime inheritances in the Balearic Islands, driven by the fear of a possible rise in the Inheritance Tax. Faced with uncertainty about potential changes in tax regulations, many residents in the Balearic Islands have decided to take action and secure their assets through […]
Legalisation of housing on rural land in the Balearic Islands: an opportunity for property owners
The recently approved decree-law of May 2024 has opened an important door for the legalisation of buildings on rural land in the Balearic Islands. This transitional regime, which allows the legalisation of buildings for a maximum period of three years, represents a great opportunity for many owners who wish to legalise their properties, while at […]
WHICH TAXES DO INFLUENCERS OR CONTENT CREATORS PAY?
Freelance content creators have to pay tax on the donations they receive from their viewers. Live auctions, project donations or tips for specific content are a source of income for thousands of freelance content creators. However, they should be aware that they are not tax-exempt.The musician who performs live on Instagram and receives one-off tips […]
SELLING YOUR HOME – CALCULATING THE PROFIT What are investments for the owner are considered simple repairs by the tax office.
Against the backdrop of increasing property investment in the Balearic Islands, the Spanish tax authorities have come under fire for their tax treatment of investments in property improvements and refurbishments. In many cases, the tax office systematically rejects expenditure on property improvements and categorises them as simple repair and maintenance work. This categorisation prevents owners […]
Tax exemption for work abroad
The Income Tax Law (IRPF) provides for an important tax exemption for residents who work abroad. This tax concession, regulated in Article 7.p) of the LIRPF, makes it possible to exempt income from work carried out outside Spain up to 60,100 euros per year, provided that certain conditions are met. To be eligible for this […]
Foreign self-employed persons can now benefit from the Beckham Act
One of the regulations that has recently attracted the most attention on the Spanish tax scene is the so-called Beckham Law. This special regulation, named after the famous footballer David Beckham, offers significant tax benefits to certain posted workers who transfer their tax residence to Spain. According to the latest figures, more than 10,000 people […]