8 deductible expenses for tourist rentals on platforms like Airbnb

Income obtained from holiday rentals is usually considered real estate capital income, unless you offer services similar to those of a hotel, which would imply taxation as an economic activity. In the case of real estate capital income, expenses will only be deductible in proportion to the time the property was rented, not just advertised.

Furthermore, as it is a tourist rental, you will not be able to apply the 50% reduction for habitual residence rental. Below, we show you some of the expenses you can deduct:

1. Maintenance and repairs

Repairs and maintenance of the property are deductible. If you have to fix a roof, change pipes, or repair an appliance, make sure to save the invoices. Remember that only repairs are deductible, not improvements or extensions.

2. Insurance premiums

Insurance for tourist rentals, such as civil liability or those covering theft or fire, are also deductible, provided they exclusively cover the holiday rental and correspond to the year of the declaration.

3. Taxes and fees

Taxes such as IBI or waste collection fees, as well as community payments, are deductible if they are directly related to your tourist rental and correspond to the declaration period.

4. Financing interest

If you have a mortgage or have applied for a loan for property improvements, you can deduct the interest on these loans.

5. Platform commissions

Commissions you pay to platforms like Airbnb or Booking.com are deductible, as they are considered part of the rental formalisation. Do not forget to justify them with transaction records.

6. Supplies and services

Expenses for water, electricity, gas, internet, and other essential services are deductible in proportion to the days the property has been rented.

7. Third-party services

Expenses for cleaning, accounting advice, or gardening can also be deducted. These personal third-party services are deductible as long as they are necessary for rental management.

8. Property depreciation

You can deduct the depreciation of the property, which compensates for the loss of value of the property over time. The Tax Agency allows deducting up to 3% of the higher value between the acquisition cost or the cadastral value.

Limit of deductible expenses

Deductible expenses cannot exceed the income obtained. If expenses are greater than income, you can deduct the excess in the following four years, provided they do not exceed the income of each fiscal year.

‍

Knowing deductible expenses is key to reducing the tax impact of your holiday rental. Keep all invoices and receipts organised and, if in doubt, consult a tax advisor to avoid problems with the Tax Agency.

‍

‍