Renting out a property on platforms like Airbnb or Booking.com has become a popular source of income. However, this activity comes with a series of tax obligations that every owner must be aware of to avoid surprises with the Spanish Tax Agency (AEAT). Below, we break down the key points you need to consider in 2026 and for the upcoming changes in 2027.
Personal Income Tax (IRPF): How to declare your rental income
The income you earn from renting a property through digital platforms is generally considered income from real estate capital (rendimientos del capital inmobiliario) in your Personal Income Tax (IRPF) return.
From the gross income you receive, you can deduct all necessary expenses to earn it:
* Platform commissions (Airbnb, Booking, etc.).
* Cleaning and laundry expenses.
* Utilities (electricity, water, internet) during the rental periods.
* Repairs and maintenance.
* Property tax (IBI), waste collection fees, and community fees.
* Mortgage interest and property depreciation expenses.
Important: Unlike long-term residential rentals, short-term or tourist rentals are not eligible for the 60% (or 50%, depending on the case) reduction on the net return.
VAT: Should you charge 10% VAT?
This is one of the most common questions. The general rule is that residential rentals are exempt from VAT. However, this exemption does not apply if you offer complementary services typical of the hotel industry.
What does the Tax Agency consider hotel-like services?
* Reception and continuous customer service.
* Regular cleaning of the property during the stay (not just at check-in and check-out).
* Regular changing of bed linen and towels.
* Breakfast, catering services, etc.
If you provide any of these services, your activity is considered a business activity. You must register as a freelancer (autónomo), issue invoices with 10% VAT, and file the corresponding quarterly returns (Form 303).
Form 179: The Tax Agency already has your data
Since 2018, vacation rental intermediary platforms (such as Airbnb, Vrbo, HomeAway, or Booking.com) are required to file Form 179 (Modelo 179) quarterly. In this informational return, they report data on property owners, properties, and the amounts received for each rental to the Tax Agency.
This means that the Tax Agency cross-references this data with your income tax return. Therefore, it is crucial to declare all income earned to avoid inquiries and potential penalties.
The arrival of VeriFactu in 2027
If your rental activity is considered a business (because you charge VAT), you need to pay attention to the imminent implementation of mandatory electronic invoicing and VeriFactu systems.
A VeriFactu invoicing system is software that meets the technical requirements to send billing records to the AEAT securely and in a standardized format. To learn more about this new system, you can check our complete guide: [What is VeriFactu? Guide for Freelancers in Spain](/en/what-is-verifactu-spain).
The key deadlines you should mark on your calendar are:
* July 1, 2027: Mandatory for freelancers and micro-SMEs.
* January 1, 2027: Mandatory for all other companies.
From these dates, if you issue invoices, you must do so through compliant software. Now is the time to digitize your management and ensure you comply with the regulations to avoid future fines.