# Making money renting rooms out



## Dazroberts1 (Feb 7, 2014)

Hi everybody hope somebody can help me out with a problem i have.
We moved to Spain last year and bought a house which had a granny annexe with the intention of family coming over to stay. Since then when it's not in use we advertise it on various holiday letting sites and had a few people come and rent it out and this summer it's been rented the whole summer the problem I have Is my wife works here in Spain and i at present don't and she is panicking that the tax authorities will catch up with us. I'm just wondering what the best course of action is do i set it up as a business or just do nothing at all and not inform the relevant people 
Any advice would be great


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## Lynn R (Feb 21, 2014)

Dazroberts1 said:


> Hi everybody hope somebody can help me out with a problem i have.
> We moved to Spain last year and bought a house which had a granny annexe with the intention of family coming over to stay. Since then when it's not in use we advertise it on various holiday letting sites and had a few people come and rent it out and this summer it's been rented the whole summer the problem I have Is my wife works here in Spain and i at present don't and she is panicking that the tax authorities will catch up with us. I'm just wondering what the best course of action is do i set it up as a business or just do nothing at all and not inform the relevant people
> Any advice would be great


Well, if you want to avoid the risk of the tax authorities catching up with you, I suppose your options are
1. set up a business and declare the income for tax
2. not rent out your annexe.

Option 3, doing nothing and not informing the relevant people, would continue to expose you to that risk.


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## Dazroberts1 (Feb 7, 2014)

Yeah thanks Lynn option 1 looks more likely just wondered if it's something they are starting to crack down on there must be thousands off house out there that rent out during the summer


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## Gareth54 (Nov 8, 2014)

With option 3 if you are not advertising in Spain and the renters are paying cash, the paper trail is a lot harder to follow for the tax authorities, if they take the trouble to check. I am obviously not advising just relativering.


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## Dazroberts1 (Feb 7, 2014)

Yeah it's on airbnb though so it's pretty easy to find if we get repeat customers we send them emails and they can pay cash when they come just want to stop my wife panicking really I would do option 3 but she can't sleep at night thinking they will fine us thousands


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## xabiaxica (Jun 23, 2009)

Dazroberts1 said:


> Yeah it's on airbnb though so it's pretty easy to find if we get repeat customers we send them emails and they can pay cash when they come just want to stop my wife panicking really I would do option 3 but she can't sleep at night thinking they will fine us thousands


your wife is right to be worried

Hacienda (the tax office) is tracking down advertisers on airbnb 

¿El fin de AirBnb en España? Hacienda perseguirá el alquiler de viviendas para el turismo - Bolsamania.com


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## Chopera (Apr 22, 2013)

May be I'm missing something but why does the OP have to set up a business to declare the income?


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## xabiaxica (Jun 23, 2009)

Chopera said:


> May be I'm missing something but why does the OP have to set up a business to declare the income?


I don't think he does - but he does have to declare the income


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## Dazroberts1 (Feb 7, 2014)

Ok thanks guys sorry your right about the business side just declaring the income and pay tax looks the best option I think a trip to the lawyer might be in order make sure it's done correctly


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## xabiaxica (Jun 23, 2009)

Dazroberts1 said:


> Ok thanks guys sorry your right about the business side just declaring the income and pay tax looks the best option I think a trip to the lawyer might be in order make sure it's done correctly


see a gestor

will cost you much less & will know more about it


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## fergie (Oct 4, 2010)

This article may help explain things, Definately better if you get some advice from the gestor.


Dispelling the myths about holiday rental licences in Spain


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## Horlics (Sep 27, 2011)

Dazroberts1 said:


> Ok thanks guys sorry your right about the business side just declaring the income and pay tax looks the best option I think a trip to the lawyer might be in order make sure it's done correctly


I think you'd be best engaging a gestor to make an annual return for you. They know about all the things you can deduct from the income for your expenses. You'll probably save money in the long run.


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## Alcalaina (Aug 6, 2010)

There was a new law introduced recently about regulating private holiday lets (intended to pacify the hotel industry, who don't want the competition) but its implementation varies according to where you are.

Holiday Rental Regulations Update By Region


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## AllHeart (Nov 22, 2013)

Dazroberts1 said:


> Hi everybody hope somebody can help me out with a problem i have.
> We moved to Spain last year and bought a house which had a granny annexe with the intention of family coming over to stay. Since then when it's not in use we advertise it on various holiday letting sites and had a few people come and rent it out and this summer it's been rented the whole summer the problem I have Is my wife works here in Spain and i at present don't and she is panicking that the tax authorities will catch up with us. I'm just wondering what the best course of action is do i set it up as a business or just do nothing at all and not inform the relevant people
> Any advice would be great


I like you wife as she's a woman with a conscience. She's a keeper!


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## Dazroberts1 (Feb 7, 2014)

Ok thanks for the advice


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