The Canarian tax authorities have issued the following statement in response to numerous inquiries about Decree 113/2015 of 22 May, establishing the Regulation of Viviendas Vacacionales (vacation dwellings) in the Canary Islands, published in the BOC No. 101 of 05.28.2015:
Operating a Vivienda Vacacional, defined as temporary housing ceded to a third party in exchange for payment, and which has been marketed as holiday accommodation, is a fiscally regulated activity which is liable to IGIC. Therefore, anyone carrying out Vivienda Vacacional lets (whether the owner personally or those acting on his behalf) must comply with the following requirements:
– Register for IGIC (modelo 400)
– Issue an invoice for each let
– Apply 7% IGIC to the rental price, and specify this on the invoice.
They will also be subject to the requirements of IGIC registration, not least the obligations to submit quarterly IGIC tax returns (modelo 420), as provided for in Article 59 of Law 20/1991, of 7 June.
(For more about private letting under the Vivienda Vacacional Decree, see HERE).