How does the tax office know about my income?

Platforms like Airbnb and Booking report all rental income directly to the tax authority every quarter via the Modelo 179. The match against the tax return is automatic.

Does the 60 percent reduction apply to holiday letting?

No. The 60 percent reduction applies only to letting as long-term housing. Tourist letting is excluded.

Which expenses can I deduct?

In principle, directly attributable expenses pro rata for the days let — such as platform commissions, maintenance and repairs — properly documented. For non-let days, an attribution based on cadastral value applies.

How long must I keep receipts?

In the Canaries at least four years, in line with the tax limitation period.

Holiday-let tax Canaries: Airbnb reports to the taxman

Booking platforms report income directly to the tax office every quarter. (Photo: illustration)

Let's start with the point that makes the tightening effective in the first place — and one many landlords are unaware of. In Spain, booking platforms are obliged, via the so-called Modelo 179, to transmit all rental income to the tax authority every quarter. In plain terms: the tax office already knows which property earned how much through Airbnb or Booking — before the tax return is even filed. Anyone who conceals income or understates it automatically creates a discrepancy that the system detects. The AEAT cites precisely this data-match as one of the most common errors it uncovers.

Why holiday letting is a tax world of its own

Many owners underestimate that tourist letting is treated differently from ordinary residential letting. The key difference: letting to long-term residents brings a 60 percent reduction on net income — for holiday letting this reduction does not apply, because it doesn't count as residential letting. In return, in the Canaries the IGIC comes into play: holiday letting is generally subject to IGIC at 7 percent, declared quarterly via the Modelo 420. This is not mainland Spanish VAT but the Canaries' own system — at 7 rather than 21 percent, incidentally a tax advantage over the mainland.

For deductible expenses, a clear logic applies: they count only pro rata for the days the property was actually let. Platform commissions, maintenance and repairs during the letting period are generally deductible; for the days without guests, by contrast, a notional income attribution based on the cadastral value applies. The tax office requires all expenses to be properly documented and directly attributable to the let property.

What you as a landlord can concretely do Keep contracts, payment receipts and invoices in your name — in the Canaries for at least four years (the limitation period). To deduct the IGIC you have paid, you need proper invoices showing the IGIC; a simple till receipt isn't enough. Separate let and vacant days cleanly. And reconcile your figures with the data the platform reported via the Modelo 179 — that way you avoid discrepancies. If in doubt, a visit to a tax adviser (asesoría / gestoría) is worthwhile; the cost is often well below what mistakes can cost.

Especially important for owners resident abroad Anyone tax-resident not in Spain but, say, in the UK, Germany or Switzerland is subject to their own rules: as a non-resident, certain expenses can often be deducted only partly or not at all, and the non-let days must also be declared in an annual return. Here the correct tax classification (resident or non-resident, business or private) is decisive — and varies depending on the double-taxation treaty. This constellation is exactly the case where professional advice before filing is especially worthwhile.

Frequently asked questions

How does the tax office know about my income?: Platforms like Airbnb and Booking report all rental income directly to the tax authority every quarter via the Modelo 179. The match against the tax return is automatic.
Does the 60 percent reduction apply to holiday letting?: No. The 60 percent reduction applies only to letting as long-term housing. Tourist letting is excluded.
What tax applies in the Canaries?: Holiday letting is generally subject to IGIC at 7 percent, declared quarterly via the Modelo 420. This is not mainland VAT.
Which expenses can I deduct?: In principle, directly attributable expenses pro rata for the days let — such as platform commissions, maintenance and repairs — properly documented. For non-let days, an attribution based on cadastral value applies.
How long must I keep receipts?: In the Canaries at least four years, in line with the tax limitation period.

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As of 23/06/2026. Sources include Diario de Avisos, the Agencia Tributaria (AEAT) and the Agencia Tributaria Canaria. Tax rules depend on the individual case (resident/non-resident, private/business, type of contract) and may change; the official provisions and the current state of play are what count. This article is general information and does not replace individual tax or legal advice. Illustration.