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Rental Tax and Private Rentals Q&A


Q. I own 3 weeks but only plan to let 2 weeks. Is tax payable?

A. Yes. If you own more than 2 weeks in a calendar year, tax is payable on any rental income received for any of your weeks.

Q. The rental income is only sufficient to cover my maintenance fees, I don’t make any profit. am I liable for tax?

A. Yes. All income received is taxable, no allowance is made for expenses such as maintenance fees.

Q. Is any tax due if I allow family members or friends to use my villa?

A. As long as no money is changing hands, there is no liability for tax.  If family members or friends make a payment to cover maintenance, that would be considered as taxable income.

Q. I plan to let my villa privately to cover the cost of maintenance, what is my liability?

A. Private rentals breach Spanish Holiday Rental law and only WimPen is licensed to offer rentals. So there is a risk of fines and penalties, and there is a liability for tax if you receive any payment. Private rentals would be at your own risk.

Q. I own 2 weeks in my sole name, my wife owns 2 weeks in her sole name. Is any tax payable?

A. Tax is only payable if you own more than 2 weeks in a calendar year sole or joint names.

Q. How is the tax paid?

A. WimPen will deduct tax from any payment due to owners if they let your villa. If you let privately at your own risk, you are obliged to inform the tax authorities.

Q. If I let my villa privately, how will the tax authorities know?

A. We don’t know what investigations the tax authorities are carrying out or what questions they are asking. You should never be sure you are out of the long reach of the law. The risk is yours.

Q. Are Wimpen obliged to advise the tax authorities if people other than owners use the unit?

A. we dont know if WimPen are obliged to inform authorities, but if authorities demand that information, WimPen may have to oblige.

Q. I own more than 2 weeks, but in different villa where I only own two weeks. Am I exempt for tax?

A. I am advised that the criteria is ownership of more than two weeks regardless of number of villas owned.