Spain's Tax Reporting Rule Targets Vacation Rental Intermediaries

The Situation: Spain has introduced a new tax reporting obligation applicable to intermediaries in the renting of houses for tourism purposes, which mainly affects collaborative online platforms. Until now, the Spanish Revenue had tried (in some cases, unsuccessfully) to gather information through individual requests to these intermediaries based on general reporting obligations set out in Spanish tax laws.

The Result: As a tool against tax fraud, beginning January 1, 2018, persons who help arrange the renting of houses for tourism purposes must disclose certain information to the Spanish Revenue, which then can use this information to assess the property owner's taxable income arising from these transactions.