Holiday-let tax in Málaga: modelo 210, income tax and deductible expenses

Who declares what

The tax and the form depend on your tax residence, not your nationality:

Spanish resident

Rental income goes into your annual IRPF return as property income, or as business income if you provide hotel-style services.

Non-resident, EU/EEA

Non-Resident Income Tax via modelo 210, at 19% on net income, with the right to deduct expenses.

Non-resident, outside EU/EEA

Modelo 210 at 24% on gross income and, as a general rule, no deduction of expenses.

That asymmetry — a higher rate on a larger base — is why many British owners saw their bill rise after Brexit, and it has been the subject of litigation.

Modelo 210 in practice

Modelo 210 is the Non-Resident Income Tax return. It is filed with the Agencia Tributaria and covers income earned in Spain by someone not tax-resident here.

Filing frequency for rental income has been simplified in recent years toward an annual return, rather than the quarterly filing many owners remember. Exact deadlines and direct-debit rules change from year to year, so confirm them on the tax authority's portal before each filing.

If the property has several co-owners, each declares their share according to their ownership percentage. There is no single joint return for the property.

Which expenses you can deduct

Where you are taxed with a right to deduct, expenses must be directly linked to the declared income and pro-rated across the days the property was actually let. The usual ones:

Management commission

What the owner pays the company running the let.

Cleaning and laundry

Where invoiced to the owner and not charged on to the guest.

Utilities

Electricity, water, gas and internet, pro-rated by days let.

Community fees and IBI

Community charges and property tax, on the same pro-rata basis.

Insurance

Home and public-liability cover linked to the activity.

Repairs and upkeep

Maintenance costs; improvements that add value follow a different regime and are depreciated.

Building depreciation

An annual percentage of the construction value, not the land value.

Mortgage interest

The interest portion attributable to the let period.

Do you charge VAT?

Letting a holiday home without providing hotel-style services is, as a general rule, exempt from VAT.

The exemption falls away when the owner provides complementary hotel-type services during the stay: cleaning and linen changes mid-stay on a regular basis, permanent reception and guest attention, catering. The activity then becomes taxable at the applicable reduced rate.

Changeover cleaning between guests does not, on its own, make the activity hotel-like.

Local charges and other obligations

Beyond national taxation, keep in mind the obligation to register guests with the competent authority on every check-in, and any charges or requirements an individual town hall may impose.

Andalusia does not currently apply a regional overnight tourist tax equivalent to some other regions, but it is a recurring policy discussion and worth reviewing periodically.