8 deductible expenses for tourist rentals on platforms like Airbnb

The income obtained from vacation rentals is usually considered real estate capital income, unless you offer services similar to those of a hotel, which would imply taxing it 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.

In addition, 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 the pipes or repair an appliance, make sure to keep the receipts. Remember that only repairs are deductible, not improvements or extensions.

2. Insurance premiums

Insurance for tourist rental, such as civil liability or those that cover theft or fire, are also deductible, as long as they exclusively cover the vacation rental and correspond to the year of the declaration.

3. Taxes and fees

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

4. Financing interests

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

5. Platform commissions

The commissions you pay to platforms like Airbnb or Booking.com are deductible, as they are considered part of the rental formalization. Don't 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

The expenses in cleaning, accounting advice or gardening can also be deducted. These personal services from third parties are deductible as long as they are necessary for the management of the rental.

8. Depreciation of the property

You can deduct the depreciation of the property, which compensates for the loss of value of the property over time. The Treasury allows you to deduct 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 higher than income, you can deduct the excess in the following four years, as long as they do not exceed the income for each financial year.

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

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