Owning a holiday rental property in Marbella — especially in areas such as Cabopino, Elviria, Río Real, Nueva Andalucía and San Pedro de Alcántara — can be highly profitable, but many owners underestimate the importance of proper tax compliance in Spain.
Whether you live in Spain or abroad, rental income generated from a property located in Andalusia is subject to Spanish taxation. Failing to declare correctly can lead to penalties, audits, and serious legal complications.
Yes. All income generated from renting a property located in Spain must be declared in Spain, regardless of whether the owner is a Spanish resident, EU resident or non-EU resident. Tax obligations apply to apartments, townhouses and villas used for short-term or holiday rentals in Marbella.
While tax rates and deductible expenses may differ depending on residency status, declaring rental income is always mandatory.
Whether you live in Spain or abroad, rental income generated from a property located in Andalusia is subject to Spanish taxation. Failing to declare correctly can lead to penalties, audits, and serious legal complications.
Understanding your tax obligations from the start helps you:
Avoid fines and interest charges
Protect your investment
Plan realistic net returns
Operate your rental business legally and sustainably
In this guide, we explain the main tax responsibilities for holiday rental owners in Marbella, especially for non-resident investors, and how professional management helps keep everything under control.
Yes. All income generated from renting a property located in Spain is taxable in Spain, regardless of where the owner lives.
This applies to:
Spanish residents
EU residents
Non-EU residents
There are differences in how income is taxed and which expenses can be deducted, but declaration is always mandatory.
Most holiday rental owners in Marbella are classified as non-residents for tax purposes.
They must declare rental income under Impuesto sobre la Renta de No Residentes (IRNR).
Key points:
Declarations are normally submitted quarterly
Tax is calculated on rental income generated in Spain
EU and EEA residents may deduct certain expenses
Non-EU residents usually cannot deduct expenses
Failing to submit quarterly declarations is one of the most common compliance issues among foreign property owners.
Tax authorities and regional administrations actively monitor rental activity in high-demand areas such as Cabopino, Elviria, Río Real, Nueva Andalucía and San Pedro de Alcántara, especially for properties advertised on major booking platforms.
For EU and EEA residents, certain rental-related costs may be deductible, such as:
Cleaning and laundry services
Property management fees
Maintenance and repairs
Utilities during rental periods
Platform commissions
However, deductions must:
Relate directly to rental activity
Be supported by valid Spanish or EU invoices
Follow proportional rules based on rental periods
Incorrect deductions can trigger audits and penalties, which is why professional tax advice is strongly recommended.
This is one of the most misunderstood topics among property owners.
In most standard holiday rentals, VAT does not apply to the accommodation itself if the owner is only providing lodging.
However, VAT may apply if the property offers hotel-style services, such as:
Daily cleaning
Catering or meals
Reception services
In those cases, the rental activity may be classified as hospitality rather than simple accommodation, and VAT registration may be required.
Even when accommodation is VAT-exempt, booking platforms such as Airbnb, Booking.com and VRBO charge VAT on their service fees.
This means:
Platform commissions always include VAT
Owners still pay VAT indirectly through platform fees
These VAT amounts appear on platform invoices
This VAT does not usually affect the owner’s tax declaration directly, but it is part of the real operating cost of the rental business and must be considered when calculating net income.
In addition to income tax, owners must also budget for:
IBI (local property tax)
Community of owners fees
Waste and municipal taxes
Insurance policies
These costs apply even when the property is not rented and must be included when evaluating annual profitability.
Many owners focus mainly on:
Nightly rates
Summer occupancy
But true profitability depends on:
Year-round occupancy, not just high season
Full tax obligations
Operating and maintenance costs
Management and compliance services
Without proper financial planning, owners may overestimate returns and under-prepare for quieter periods. This is particularly common among international owners who only consider peak summer income and underestimate year-round costs and Spanish tax obligations.
At Pass the Keys Marbella, we work closely with owners and their tax advisors to ensure:
Accurate tracking of rental income
Proper booking documentation
Clear financial records
Transparent reporting for accountants
While we do not file tax returns on behalf of owners, we provide the structured data needed for accountants and fiscal representatives to work efficiently and correctly.
This significantly reduces:
Administrative stress
Risk of mistakes
Exposure to penalties
Tax regulations, platform rules and reporting systems continue to evolve.
Regular reviews help ensure that:
Declarations remain compliant
Documentation is up to date
Profitability calculations remain realistic
Professional management helps owners adapt quickly to regulatory changes without operational disruption.
Not sure if your holiday rental tax setup in Marbella is correct? Whether you already rent your property or are still preparing to list it, our local team can explain how rental income is tracked and what documentation your accountant will need.
👉 Book a free call with our Marbella City Manager here:
https://calendly.com/ana-torrens-passthekeys
We’ll help you understand how professional management supports tax compliance and protects your long-term profitability.
Earn confidently, stay compliant, and let experts handle the complexity.