Hacienda’s new measures forcing holiday rental intermediaries to provide comprehensive details of owners and properties come into force in July

Hacienda’s new measures forcing holiday rental intermediaries to provide comprehensive details of owners and properties come into force in July

Updated 8 January 2018: The Hacienda has confirmed that tourist rental housing platforms like Airbnb and HomeAway will have to submit a declaration (modelo 179) to the tax authorities from July this year providing information about the properties being advertised, including their catastral numbers, as well as details of the owners and clients of those properties, and periodic reports about activity related to the rentals including the number of days for which rentals were booked and the amount that was charged. Bear in mind that although this comes into force in July, it will be applicable to the whole tax year, and so from now. The Hacienda says that the declaration will be obligatory for all intermediation services, whether individuals, businesses or online portals. Tourist use is defined for these purposes as the temporary provision of an entire furnished and equipped property for financial gain regardless of how it was marketed or promoted. Anyone in any doubt at all should seek advice from their accountant or tax adviser.

Original post 17 September 2017: The Spanish tax authorities are preparing legislation that would oblige “collaborative platforms” that act as intermediaries in the rental of tourist accommodation to produce periodic statements identifying the owners of the properties being advertised and the amounts for which the rentals are offered. The news has gone down badly with the Asociación Española de la Economía Digital (Spanish Digital Economy Association) which says that the proposals violate current legislation governing freedom of enterprise, and are a brake on innovation.

Currently, digital tourist accommodation platforms are considered Information Service Providers and are governed by Information Society Services legislation which follows guidelines set by the Electronic Commerce Directive and Data Protection Law. Under these regulations, their activity is purely technical and automated, which implies that they have no effective knowledge or control over the information transmitted or stored in their websites and applications. Adigital insists, therefore, that Hacienda’s intended legislation conflicts with existing law.

There have been notable attempts elsewhere and for various reasons to control what happens on the internet, and these have often proved fruitless, but the Hacienda is nonetheless clearly attempting to force these platforms to provide the tax authorities with information about their users on the grounds that it is attempting to obviate tax fraud. It will seek to require the platforms to provide full names and ID references, catastral numbers, length of rental, and amounts charged. Some compromise will be inevitable, it seems clear, but clearly the Hacienda is determined one way or another to tighten up its control of information and go after what it considers to be tax-dodging private holiday letting.

34 Comments

  1. Boom. Shake the room 😂

  2. Will this include the exploitation agents operating on touristic complexes?

  3. This is good news for those of us who have bought in residential areas, only to be tormented by a constant stream of holiday makers…

  4. How are they going to force AirBnB for example to do anything as it’s not based locally?

  5. They might not have to do anything to the providers like AirBNB. If the people using these services think there is a chance that the Hacienda will get their details and come after them they will leave before it can happen.

  6. Author

    not the sole agents, no, because they are already legal and make legal tax declarations.

  7. Of course Janet, I should have made it clear I was talking about people who are not doing it legally.

  8. Author

    sorry Stewart, was replying to Gloria!

  9. THIS is a google translation of article that was from ASCAV on Facebook
    FROM JULIO HACIENDA GOES FOR THE PLATFORMS AND THE VV

    Hacienda is already preparing the new “model 179” that requires holiday rental platforms as to send information on homes that have been assigned for hiring.

    As Invertia advances, as of July 2018 it will be necessary for these companies to complete the 179 model. As can be seen in the informative news 2017, the Treasury wants to have greater control of tourist rental activity, which has grown strongly in recent years. years.

    Who is obliged to present model 179?

    According to the Tax Agency, they will be obliged to present the model 179 “the persons and entities that provide intermediation service between the assignors and assigns” and “in particular, the persons or entities constituted as collaborative platforms that mediate in the assignment of use and have the status of service provider of the information society “.

    What is a house for tourism purposes?

    The Treasury understands by the use of housing for tourist purposes, the temporary assignment of use of the entirety of a dwelling. A property that has to be furnished and equipped for immediate use, whatever the channel through which it is marketed and always for a lucrative or onerous purpose.

    When does the 179 model come into force?

    The obligatory nature of the model 179 will come into force in July 2018, although as explained by the Treasury “including the information of the total of the exercise”. That is, even if it has to be submitted by the middle of next year, it will be necessary to do so with the information of January 1, 2018.

    What information does the model 179 include?

    The model 179 that is going to start up Hacienda includes:
    1. Identification of the owner of the dwelling, the owner of the right under which the dwelling is assigned (if different from the owner of the dwelling) and of the assignees or entities.
    2. Identification of the property with the cadastral reference specification.
    3. Number of days of enjoyment of the house for tourism purposes.
    4. Amount received, where applicable, by the transferor of the right.

    Do I have to fill out model 179 if I have a rental apartment?

    The obligation to fill the model 179 is of the holiday rental platforms type Airbnb, Wimd The owner of the house has the obligation to declare the returns obtained from the holiday rental, in addition to complying with the regulations that apply in its autonomous community. this matter.

    This new document is another step in the control of this vacation rental model.

    In summary, it is very important to declare two distinct periods of holiday rental:

    • Period with the rented dwelling: this time lapse includes the days or months in which the dwelling has been rented. It will be obligatory to declare to the Treasury the full income, but in return the expenses necessary for its rent can be deducted for the days that it has been rented.

    • Period with the empty house: when the house is not rented, the Treasury will take into account a rent for a second home.

  10. In the small print it states that the intermediaries must provide the information for the full year ie from January 1st 2018 when they eventually submit Modelo 179!

    Illegal renters using intermediaries are immediately and currently at risk it would appear.

    Presumably the information will be used in some way by the Turismo inspection teams. Double risk.

  11. Hi Janet, Am I correct in saying that owners of apartments on residential complex’s who rent short term, (one or two weeks) who use commercial holiday letting site will be subject to the same checks etc as that of a professionally managed touristic site? Does this also mean that these owners who have not already supplied information will be made to do so to the authority? This will really anger quite a number who have property/properties on Residential Complexes and hopefully will stop them renting short term.

  12. Author

    The regulation refers to the intermediaries, not the owners, and this is a tax gathering exercise so I’m not sure what you mean by “subject to the same checks”. To be as clear as I can be, this is a national Spanish tax issue, not a regional Canarian tourism one.

    As to those with residential properties who let out to holidaymakers, that is completely illegal in the Canaries unless the properties are residential and in residential areas, and the owners have registered them with the Cabildo.

    In such cases, they can legally let for commercial tourism purposes, but even then they must declare for tax. I don’t actually see why they would have reason to get angry because this new measure just forces the intermediaries to provide information that such owners should themselves be submitting to the tax authorities in any case.

  13. sounds all well and good but it’s the illegal renters who are keeping the island afloat. If they have to declare this income a large proportion will stop driving supply and demand imbalance even more and rents will increase..Or holiday makers and buyers will go elsewhere. A worse case is it ‘could’ ‘possibly’ drive the island into another recession.

    Careful what you wish for IMHO.

  14. We have heard all these unsubstantiated threats before and I don’t believe a word of it Richard. I am sure the hotel groups and legitimate l apartment renters would rubbish your claim . If people want to continue stealing revenue from the government by illegally renting for cash in hand and openly boasting about it when they have had a drink then they quite rightly deserve all they get and it just boils down to the greed and arrogance of some owners who think they are above the law. We all have to pay tax so why do some people think they should be excluded just because they own an apartment in Tenerife or other European countries. ??.

  15. Well said ‘BEMUSED’ …..this has been a long time coming.

  16. “I am sure the hotel groups and legitimate l apartment renters would rubbish your claim ”

    Hardly surprising that one TBH. 🙂

    ignore hotels as they are in a different market for this comparison :

    As a guess, of the rental market, what % do you think is illegal ?

  17. You don’t make yourself look to bright with ridiculous comments like that Richard .Are you saying you are happy with the illegal market and that you are encouraging people to steal tax for the Spanish government.?? Of course nobody can guess the % of the illegal market as there are no figures produced as it is illegal !!!!

  18. Yes I thought the same as you Smudger 😃

    Credibility is lost when a statement is made “…..its the illegal renters who are keeping the island afloat…”

  19. so you don’t know the % but you know my assumption isn’t correct.. How is your assumption is any more credible than mine? Where are your facts in all this?

    I asked for a guess, if there were figures available then it wouldn’t be a guess! However we need to understand how big a problem it actually is before we steamroller a ‘solution’

    Tax: I am not encouraging anyone to do anything either way. i just find it strange to start a moral outrage on behalf of the Spanish Government and big hotel corporations rather strange . Unless you have a vested interest of course?

    My belief from travelling around the island is that a large % of the economy is based on illegal renting. Either directly or indirectly. Has done long before I arrived. To stop that by taxing the income will leave a void. (to be filled by the hotel chains All inclusives no doubt?)

    From my experience, These illegal renters are not all greedy arrogant people.( TBF I haven’t met one who meets that description) so that just seems to be pure emotiveness and possibly clouding your judgement

    Quite a number are normal every day folk and more than a few are using this money to survive on. They then use this money in Mercadona and local bars etc. Not sending it to some offshore tax haven like the big hotel chains for example. AI is more damaging to local economy than the tax revenue raised by this could ever repair. Renting illegal or otherwise is what drives the economy not large All Inclusive hotel chains which are becoming more and more prevalent.

    Remove illegal renting and visitor numbers will fall and/or hotel prices will rise due to lack of availability and could possibly cause a large number of local businesses to suffer. House prices will fall because demand will drop and construction and all the other industries will suffer. Again this has a knock on effect throughout the island.

    Careful what you wish for is all I have said…

  20. I think you must live on a different island than the rest of us Richard. Your comments are the comments of a person who has no respect for the laws of the land and are very disrespectful to this beautiful island that we are lucky to live on .

  21. I find that the simplest of solutions is best, but never happens. In my experience, most owners don’t realise or are indeed worried, about declaring. There still isn’t enough public awareness about the simple procedures to ensure that they are paying their taxes correctly! Most of these owners don’t live on the island, therefore raising awareness here, whilst good, is ineffective.

  22. There is a lot on here about illegal rentals and tax as if they are one in the same. The two things are very different.

    First of all, fair tax should obviously be paid on Income, there is no real argument for this. When I say fair, is should be equal to businesses that can claim running costs back, its equal and fair.

    The topic around the legality of renting your flat is different, the old and very unfair law banning people from holiday renting their apartment is being challenged, the canary government has already lost 3 cases brought before the Spanish courts because it is anti-competitive, the law as it stands is simply wrong and is designed to remove any competition to Hotels which keep the locals as powerless as possible, this has enabled Hotels to pay locals very low wages, leading to the local people of the Canaries being the poorest in Spain while hotel corporations funnel money off the island.

    individual buyers are also a target as a reason for property prices going up on the islands while ignoring the that fact that Hotels and Complexes buy up huge amounts of space, pushing land value up, once again extremely anti-competitive propaganda usually put out by hotel and complex owners.

    The main source of greed going on in that island is not the individuals wanting to rent a property they have purchased, its the fat cats who already own huge amounts and have the marketing capability to create negative propaganda.

    These same people have also wanted to build hotels on nature reserves and drill for oil off the coast near to where the dolphins and whales live which would destroy the beauty of the islands and drive the wildlife away.

  23. Author

    Just to clarify one detail, it is not the “law” that the Canarian Government has lost three cases in the Courts about, but the Vivienda Vacacional which they are now redrafting (in their own glacial timescale, admittedly). The 1995 law remains unchallenged, or rather remains without any successful challenge. As David says, though, these are two entirely separate issues, with the Canarian Government’s tourism legislation on the one hand, and the Spanish national tax office chasing undeclared income tax revenue on the other.

  24. So Richard, you are in favour of corruption, and promote owners to break the law. Good for you Richard, I only hope that you never experience any rowdy drunken holiday maker spoiling the tranquility of your residential complex at 2am in the morning. Do you own an apartment on a residential complex and do you rent it out short term? If you do, please be careful as you maybe reported to the appropriate bodies.
    The Canary islands will never ‘sink’ all that will happen will be these tax dodgers will move out which will be a blessing and allow the “genuine” residential owner to live happily ever after. As Janet has said many, many times renting short term on residential complexes is illegal so please do not use Janet’s great web site to promote illegal actions.

  25. My final comment on owners who want to make a few extra ‘euros’ from renting their apartment should do so on registered regulated touristic complexes. I have no problem with this because these complexes are run in a legal and professional way and the management of these sites makes certain the owner will get a fair income by using agreed regulations and rules. Owners, and management are all winners, the owner because they know they are being treated fairly and operate within the law, and management, because they are paid for providing a good service to the owners and paid well for this service. I congratulate and wish all those owners well who are providing this service to the holiday maker. They operate legally within the law for renting out their apartments not like my Residential complex.

  26. It’s very easy to denounce any owners who are breaking the rules Terry.The people who do it seem to think they are fireproof and untouchable and that nobody will do anything about it much to the misery of genuine owners and swallows. Perhaps the tax authorities can shake the tree a little.They have a lot more bite than the tourist inspectors and a lot more to gain in the form of revenue for the Spanish governments.

  27. To an outsider who has a great love for the Canaries I can see the emotive issues t work here. Taxes support the local and national Spanish economy so the payment of such much take place. Sadly in every economy there are those that dont pay when they should. I am not sure that making everyone pay will cause some of the suggestions made. But paying taxes is just a cost of ownership and this does affect the economy.

    To me the more important point is the out dated law that provents anyone renting out his or her home to holiday makers. I totally understand that some dont want regular changes of tenants because of the noise and distruption they bring. However if letting was legal everywhere the local authorities could designate which parts can be let. But as someone earlier said becareful what you wish for. If your area was a non holiday designated area the value of your home may fall and it may be much more difficult to sell homes here. If a lot of the owners become elderley then there may not be sufficient income to support local shops and they will close and finally an area without a propoer mix of human ages can become a no go area.

  28. We have an apartment on a very popular Tourist complex but because of the very poor returns offered to us by the Sole letting agent, we do not let it. We are however obliged to pay a tax on the assumption that we do. I can assure you Terry that not everybody pays a fair amount .

  29. What is the actual difference in reality between ” if letting was legal everywhere the local authorities could designate which parts can be let” and the present situation where the local authorities designates tourist and non tourist complexes?

    We already have a designation.

    People spend hundreds of thousands of euros on an apartment in a “residential complex” to find that they have in reality bought a property in what is tantamount to a commercial holiday complex. Some people don’t need the holiday letting income to run the property and/or may have chosen to live permanently in the residential complex.

    Don’t these owners who obey the laws have rights too.

  30. Hmm I’m beginning to understand what’s going on here, it just seems like a load of OAP NIMBY’s with a vested interest in stopping holiday makers disturbing their peace under the guise of moral unpaid tax outrage about “illegal renters”. Of course paying the cleaner and gardener ‘cash no receipt ok for you? ‘every week is just not the same amirite?

    BTW, Nowhere have I condoned anything either way. .Nor -unlike most here- do I have a vested interest in this matter such as a short term rental apartment illegal or otherwise. I am completely impartial to the situation. I am however aware of long term tenants having a procession of holiday makers -both good and bad- and can sympathise with their plight but it’s not just the illegal renters doing this. But if the illegal sector is stopped then where do those holiday makers go? The ‘issue’ needs to be fully assessed and the impact addressed before draconian measures are swept in.

    I believe from my experience the illegal side is quite a substantial proportion of the available space and that whilst I have been ridiculed here, tellingly, no one has come back to counter my assumption with any evidence. Happy to be wrong but as yet nothing ..

    Remove a section of that illegal activity (size TBC) and the economy will suffer, the damage ‘could’ be quite substantial if the tax authorities really got into that sector. They can hand out large fines which the owners probably cannot afford; apartments will be handed back to the banks or sold off cheaply. That has an effect on the whole of the economy. I care more about Tenerife as a whole than just the odd ‘59sqm+ terrace’ of paradise

  31. Hi Richard
    Calling people who live out here OAP NIMBY’s is very offensive and proves you have lost your argument so as you cant obviously afford to buy out here you will have to carry on illegally renting and paying the owners cash in hand. At least it will give you something to talk about down at the pub. !!! Good bye.

  32. Author

    This is just degenerating now so please stop commenting on this article until (and unless) I’ve upated it with any further information.

  33. I am a 55 year old self employed family man who owns and lives in a 3 bedroom residential apartment complex, so not an OAP, and my ‘Backyard’ is my home and has been for the past 16 years.
    If you live in an apartment you expect and tolerate a normal level of noise, that’s normal, but innocent tourists who have just gone online and searched for holiday accommodation do not know they are renting in a residential complex and act like normal holiday makers, which in general involves late nights and rowdy behavior; not all of them but enough of them.
    I know this because I have had to get out of my bed many times in the early hours of the morning and knock on doors to politely ask people to lower the noise, most of the time they have done so, but I have had a few “not so amicable” drunken responses, but I have followed it up the next day.
    I just know it’s just a matter if time before there is going to be a physical confrontation from one of the doors I knock on!
    I have called the police, but that is too long and slow a process, the night sleep is already lost by the time they arrive.
    EVERY person has the right to a nights sleep and my message to any readers of my post who own and rent a property/properties on known residential housing is, “I hope you suffer from permanent insomnia for the rest of your lives and never sleep soundly again ! or squatters move in next door to where you live”

  34. By the way of some evidence based data, in the La Oliva municipaility of Fuerteventura ( which includes Corallejo and El Cotillo…biggest tourist area) the local council undertook a study around the size of the problem. It was more tourist license based than tax but the 2 are linked id guess. Of c. 2,500 private rentals in the area ( guessing from scanning booking.com and airbnb etc) less than 100 had a license and another c 500 had applications in process

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